For centuries, gold and silver have served as ways for people to store their excess wealth.   Gold and silver are are the the world's best retirement asset because  are "hard" assets.   They have value in and of themselves  (intrinsic value).   Gold and silver are very different from stocks, bonds, and the paper dollars we carry in our wallets.   Why?   Because nobody can steal the value out of gold or silver.  

Stocks, bonds, et cetera are "soft" assets because their value is dependent upon your faith in a third party to exchange something of value for them.   In our present economy, gold and silver are excellent ways to protect your assets from losing their value by inflation (government deficit spending).

Also, gold and sliver are universally recognized and accepted as money.   The United States constitution recognizes gold as the only real money.

In this present economic times where the value of the American dollar could literally disappear in runaway inflation, gold and silver are safe havens.   Gold and silver increase in value when other financial assets, those held in the form of dollars, decrease in value.   In other words, gold moves in a counter cyclical relationship with U.S. stocks and bonds and other paper (intangible) assets.  

Some say real estate is no longer a good investment.   With regard to purchasing new real estate investments at this time (Feb 2009) they are correct.   However, holding real estate that was purchased prior to the real estate bubble and waiting out the storm appears to be as wise today as it has been for decades.   Here's how to function when purchasing real estate is not a wise use of one's money.

A year after former "Resident" Bush entered the Whitehouse, the evidence began to emerge that the financial system was heading for tough times -- Bush and company's excessive deficit financing --  a no-win, holy war against Islamic extremists -- the ballooning on the stock market -- real estate prices rising beyond their intrinsic value --  and outside-the-inner-circle economists sounding warnings.   

With these warnings, wise investors stopped putting new investment money into real estate and instead shifted their assets into gold or silver.   In January 2003, a one ounce gold coin sold for about $300.   Today, February 2009 those same coins are now selling for over $900.   That's a 200 percent positive shift for six years, divided by six, this equals a 33  percent difference on ones new money.   The next step is to hold the gold while the economy crumbles, while the price of gold skyrockets, and while the price of real estate plummets.   Somewhere near the bottom, real estate will begin to show up a bargain basement prices.  At that point, the wise investor will trade in some of his/her gold and purchase real estate.   

Editor's Note:  On January 14. 2010, the price of gold was $1,142.   That's about $240 more than the same time last year.   That's over 40% annual interest on the original, 2003, $300.   Even if you bought a one ounce gold coin last year at $900, that's still a return of over 25% on your $900.   

Editor's Note:    On January 1. 2011, the price of gold was $1,422.   That's almost $300 more than the same time last year.