Fiat-based paper currencies facilitate commerce by acting as a medium of exchange that’s far preferable to bartering. Unfortunately, governments that wish to spend beyond their means can — and do — print fiat with impunity, thereby leading to chronic monetary debasement that can wipe out savings and even disrupt societies. On the other hand, gold and silver pay no interest, but they have no counterparty risks either; that makes them trusted stores of value.
The bottom line: Responsible people never invest in physical gold and silver — they only buy it to preserve their wealth, and hedge against financial system uncertainty.
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