(By RHETT BRADY)
He loves hoarding gold.
Metal collector Harrison Grant has most of his net worth in precious metals.
Uncertainty is all around the world now with economic instability, a pandemic and currency that isn’t backed by anything other than faith in the government. Gold, silver and platinum are starting to look more attractive by the day for potential investors.
Grant, who lives in Minnesota, has been collecting metals for many years now. He has spent a lot of spare money and time on his business and one day hopes to fight against inflation and an uncertain economy with his collection.
“I see precious metals more as a store of wealth or preservation of wealth against inflation,” Grant says. “A $20 gold coin would get you a nice tailored suit back in the 1920s, and that same amount of gold in today’s money would get you a nice tailored suit today. I’m protecting myself and my future to the best of my ability against inflation.”
The gold standard is a monetary system where the government currency is backed by gold. President William McKinley signed the Gold Standard Act of 1900, which allowed paper money to be redeemed for gold. President Franklin Roosevelt made the United States abandon the gold standard in 1933 due to its rising value, and President Richard Nixon officially canceled the redemption of paper money for gold in 1971.
According to Investopedia:
“Today, the price of gold is determined by the demand for the metal, and although it is no longer used as a standard, it still serves an important function. Gold is a major financial asset for countries and central banks. It is also used by the banks as a way to hedge against loans made to their government and as an indicator of economic health.”
While gold is often referred to as “real money,” Grant offers a different but realistic take on how metals, specifically silver, could be used in the everyday world.
“I prefer the silver standard to the gold standard because more people can participate in it, and it’s more feasible to pay for things. To pay for things with gold, we’d be dealing with singular grains of gold. To pay for things in silver, it’d be a lot easier to pay in grams and a lot easier to keep track of everything.”
A metal that seems to be becoming more popular with collectors recently is platinum. It used to be generally worth more than gold, but its value took a big hit during the 2008 economic recession.
According to Steemit, a blockchain cryptocurrency website:
“Platinum is just as rare as gold and is spread over a wider area, so its extraction costs are higher than Gold. It has more industrial usage than Gold too, and a lot of the produced platinum is used to make catalytic converters in vehicular emission control units. Considering its scarcity, higher extraction cost, and greater industrial uses than gold, it’s hard to believe it’s currently cheaper.”
A lot of people who collect precious metals tout how they have longevity unlike any other items in the world. The physical aspect is also seen as a positive to many who collect them as well. .
“If you don’t hold it, you don’t own it,” Grant advises. “Stocks can be wiped out in hours. Paper money can be printed and printed by the trillions, but that will make it only less valuable. Precious metals have stood the test of time since before the pharos of Egypt.”
Just like anything, getting into a new investment can be tricky or intimidating at first. Grant suggests new members of the community always ask others for advice.
“For starting, I think silver is the best. Lower cost, lower premiums, and plenty of availability. As you develop or can allocate more money, it’s not a bad idea to diversify with gold and platinum.”
