I live in what many around the world would describe as a "Western Democracy." I vehemently disagree with the general understanding of “democracy” that most people I encounter tend to have. I'd much prefer to live in a Constitutional Democracy or Liberal Democracy - but let's not go there.
For the sake of this argument, let’s focus on the concept that in a democracy, the majority rules. This democratic concept is so important that it has a very large influence on the collective psyche of all members of the societies that employ this system of governance.
While democracy is commonly attributed as important for the selection of government, the concept of “democracy” also has a lot to do with the overall operation of society – most importantly in commerce.
Most people do not think about it, but when someone goes into a Starbucks and trade a serialized piece of paper with numbers on it for an overpriced coffee, they are exercising their right to vote. They are voting that those serialized pieces of paper with numbers on them have sufficient value to merit being traded for that coffee.
It is a vote of confidence in a currency to trade time, talent, and effort for it. It is this confidence that leads many to believe that CURRENCY is MONEY, which it is not and has never been. Much has been written about the difference between the two. I will say some of my personally preferred authors on the subject are Peter Schiff, Michael Maloney, and Robert Kiyosaki (but I digress).
It is unfortunate, but from what I have seen, most people are injuriously ignorant on the subject of money and most specifically, what money is. I believe the primary driver for this ignorance stems from the fact that most people in my adjacent community firmly and passionately believe in democracy, that is, the rule of the majority. It is this spineless, cowardly tendency to conform to mob rule that I believe is what leads most people to remain totally ignorant on the concept of money.
In “Western Democracies” fiat currency, for now, is unquestioningly considered by the majority to be money. Ignorance on the subject of what is REAL money leads the majority to ostracize, alienate, mock, or simply dismiss those who understand what it actually is.
Faced with this difficult social element, this is why I believe courage is an important requirement to be invested in physical precious metals.
First off, there is the reality that holding physical precious metals, especially as a substantial store of portable wealth makes one subject to undesirable problems like inconvenience, price volatility, loss or theft. It takes substantial courage to live with that burden. Especially since most currencies alleviate these problems, with institutions and technologies promising to keep one’s “wealth” secure from volatility, loss or theft and make it as convenient as possible to have access to it.
Second off, and I would say is the larger detractor for most people towards investing in physical precious metals, is the fact that doing so places you far, far outside the majority. If there is one thing that is true of “Western Democracies,” it is that the majority have the tendency to want to be part of the majority, regardless of whether the majority is correct or not. It is intimidating not to conform to that rule. It almost makes one feel isolated and alone - but at the end of the day, majority rule does not determine what is right. It only determines what most people think - and history has clearly shown that at times, the majority can be incorrect.
Again though I reiterate, that is why if you want to invest in physical precious metals, YOU MUST HAVE COURAGE.
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