Gold and silver are the only currency that have withstood the test of time, being used as a currency for many centuries in one form or other by many countries. Even now, when we have shifted away from the Gold Standard, many countries still buy gold to bolster their national reserves. This is because gold has a status as a reserve currency, hence has an effect of boosting confidence in the country’s currency.

Gold and silver have been able to hold their own against inflation over the long term. With inflation being a constant unknown, many investors have sought to have at least some portion of their portfolio in the precious metals as a hedge against it.

To add salt to injury, interest rates are at all time lows, fighting a losing war against inflation rates. Hence, real rates are more often than not negative. It will not go higher any time soon either. Many companies and families around the world are swimming in debt, having to borrow to stay afloat or alive. Any increase in interest rates are going to hurt many people, making it difficult to raise rates back to where they were before any time soon.

Given all that, investors continue to turn to the precious metals to hedge their portfolios against turbulent times. After all, it would be wise to heed history’s lesson that gold and silver have withstood the test of time as a store and exchange of value.