One of the most desirable benefits of owning gold and silver physical coins and/or bars, real wealth, is that these two metals do not have "counterparty risk". Counter-party risk is the risk that the counter-party in a particular security will be not able to live up to its' promise or performance. Virtually all paper assets (stocks, bonds, mutual funds and even bank investments and currencies) have counter-party risk. Let me explain this, when you own a stock, there is counter-party risk. The stock is only as valuable (or desirable) as how well the company involved is performing. If the company is doing well, the stock will continue to have value. However, if the company is in trouble (financial or otherwise), or it is in danger or bankruptcy, then the stock will lose value. Ultimately, if the company goes bankrupt, the stock becomes worthless.
When you have money in mutual funds or bonds these are also risky. "Paper assets" have counter-party risk. That risk is not limited to just stocks, bonds, or funds. In recent years we have learned that sometimes your money is not safe in a bank. In addition, even cash itself can have counter-party risk because of inflation. When governments crank up the printing press to unleash hyper-inflation (as in Yugoslavia in 1989-94 or Zimbabwe 2006-09), the currency becomes worthless literally overnight.
Enjoy the video from Mike Malony, it will tell you exactly about the Real Wealth
Part of the reason that precious metals have this unique quality is that gold and silver can not be created out of thin air by any government. Both are finite in supply and it is not easy to extract them from the earth. Annual mining only adds about two percent to the world's above-ground supplies.
Next time you hear the word "diversification", think "outside the... uh... paper box". Don't just diversify among paper assets since the portfolio would still be exposed to counter-party risk. Add non-paper assets like gold and silver for more assured diversification.
If you want to begin securing your financial future and create real wealth consider the best place to start your lifestyle powered by Gold and Silver here.