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Precious metals are truly an alternative investment. They represent intrinsic wealth that is not a form of debt. Most other investments, such as stocks, bonds, and leveraged real estate rely on the faith and credit of another party. Even cash relies on government fiat, and is intrinsically worthless. During times of financial duress, this aspect of precious metals makes them much in demand.
Another advantage of owning precious metal bullion is its anonymity. Because it is not tied to a piece of paper or its electronic equivalent, bullion can be moved and stored with maximum privacy. Perhaps this is the reason that precious metals bullion is not a favorite of governments, whose natural tendency is to expand its control.