What You Need To Know:

• With cryptocurrency being a popular form of investment among younger people, precious metals haven’t caught on.

• Precious metals have been historically a way to show off wealth.

• Physical assets mean that you own the asset no matter what happens on a global scale.

• Whether it be bars, coins, or rounds, there are plenty of options to start your investing with.

Cryptocurrency seems to be the hot investment scheme in 2022, especially among young people. The decentralized nature of this investment, along with the ease of use, makes for something entirely different from traditional investments. However, there seems to be a lot of uncertainty because of the decentralized nature of cryptocurrency from financial experts especially due to the lack of tax regulations. With “U.S. President Joe Biden signing an executive order on Wednesday (March 9) calling on the government to examine the risks and benefits of cryptocurrencies” (CNBC), I feel that the mainstreamization of cryptocurrency is the starting point of the loss of appeal. I am not a financial wizard by any means, although I like to keep up with the upcoming get-rich-quick schemes as a university student. My investment advice isn’t a get-rich-quick scheme, but rather a long-term investment that will help if you’re down on your luck or want to combat the evergrowing inflation (U.S. Bureau of Labor Statistics) since the start of 2021.

Gold! Gold, and to a lesser extent silver and platinum, have been used as a form of currency since ancient Egypt, with the United States officially being taken off the gold standard monetary system in 1971. Precious metals are traded internationally, and they are mined throughout the world. Gold is also accepted as a form of currency worldwide for its historical value and purchasing power over fiat currency. For a relatively recent gold transaction, precious metal dealer APMEX paid a lease to Donald Trump in three kilos of gold in 2011 (APMEX News). Economists William J. Luther and Alexander William Salter had this to say about fiat currency versus the gold standard, “Despite the Fed’s failure to manage fiat dollars, there is probably no going back to gold. Returning to a gold standard lacks a viable political coalition, and it isn’t obvious that a gold standard would work well after 50 years of Fed management. Yet it is still worth appreciating how the money supply adjusted automatically on the gold standard, which the Fed could mimic by adopting a strict monetary rule to accommodate changes in money demand” (Wall Street Journal, 2021). There seems to be some support for precious metals in the economic sphere, but what about the private sphere?

Seeing as they have been a way to show off wealth for thousands of years, why haven’t precious metals been embraced by many younger people? It could be the inconvenience of buying physical objects, the ease of access, or that it is something you have to hold onto, but it is all speculation. My good friend Jack Young, a senior at Texas A&M University, once said that “Gold to me is something of a luxury item. It isn’t something that most people around our age can afford right now. I would love to invest in some in the future, but I need the money for essentials for the foreseeable future.” While I am glad that I was able to invest as much as I did before I went off to university, I can agree that it is difficult for me to spare any money towards precious metals. When one has to provide for themselves or others, it is hard to justify spending money on other things. However, what about older folks?

My experience in buying and trading precious metals is that, while there are people between the ages of 18-25 in the market, it is dominated by people who are 40 years or older. Now, why is that so? Well, I believe that is the case because it is the most private asset a person can have. It can be bought under the table with cash and gold and silver can’t be taxed in Texas under state law, (platinum and palladium are, however). A lot of the people in the community also have a distrust of fiat currency and the United States dollar as a whole. Max Shanley, a financial advisor at Edward Jones, weighs his thoughts on the gold standard. “Yes, if the dollar was backed by something tangible and not something infinite, I think the people of their United States would trust that their currency would be worth something and it would be worth saving.” Passing it down from generation to generation is also something to consider for older folks looking to invest, “According to federal law, you can keep inherited gold tax-free if the estate’s total value does not amount to more than $11.7 million. If you choose to sell inherited gold, it will be taxed up to 28% on capital gains made in the period between the testator’s passing and the sale of the gold (Gold IRA Companies).

I’ve elaborated somewhat about my experience with precious metals, but I wanted a dedicated paragraph to talk about it. I love it, and I miss it. I don’t collect exclusively gold and silver bullion, but historical coins as well. There is nothing more satisfying than going to a local store or looking online and finding something that you have been on the hunt for. Seeing your “stack” altogether is satisfying as well. You are holding your investments in your hand rather than a portfolio. I used to buy and sell a lot on Instagram, and in the community there are some of the most honest and kind people that I know. I will include some photos of a lot of the highlights of my collection.

I hope that reading this article will at least make you think about investing in precious metals. I can’t completely sway someone’s opinion on anything, but it’s something that I have been passionate about for years. It’s the perfect protection of assets from a skeptical market and an iffy economy. It is not something that will make you one million dollars overnight but will rather help you have funds for retirement later in life. Tangibility is important to me in my money, and nothing is more tangible than metals that have been with something throughout human history. “The reasons for gold's importance in the modern economy center on the fact that it has successfully preserved wealth throughout thousands of generations. The same, however, cannot be said about paper-denominated currencies… If you believe gold could be a safe bet against inflation, investing in coins, bullion, or jewelry are paths that you can take to gold-based prosperity (Investopedia). 

Works Cited: 

• Browne, Ryan. “Biden Just Put out an Executive Order on Cryptocurrencies - Here's Everything That's In It.” CNBC, CNBC, 9 Mar. 2022, https://www.cnbc.com/2022/03/09/heres-whats-in-bidens-executive-order-on-crypto.html

• “Current US Inflation Rates: 2000-2022: US Inflation Calculator.” US Inflation Calculator |, 15 Mar. 2022, https://www.usinflationcalculator.com/inflation/current-inflation-rates/.

• Staff, TRD. “Trump Forgoes Cash in Commercial Lease Deal at 40 Wall Street - the Real Deal.” The Real Deal New York, 6 Jan. 2018, https://therealdeal.com/2011/09/14/donald-trump-accepts-gold-from-apmex-for-lease-at-40-wall-street/.

• Luther, William J., and Alexander William Salter. “Opinion | Lessons for Today from the Gold Standard.” The Wall Street Journal, Dow Jones & Company, 2 Aug. 2021, https://www.wsj.com/articles/monetary-policy-gold-standard-price-stability-inflation-biden-mmt-bretton-woods-11627940271.

• “Is Inherited Gold Taxable?” Gold IRA Companies, 19 Mar. 2022, https://goldiracompanies.com/blog/is-inherited-gold-taxable/.

• Lioudis, Nick. “Does It Still Pay to Invest in Gold?” Investopedia, Investopedia, 9 Mar. 2022, https://www.investopedia.com/articles/basics/08/invest-in-gold.asp.