Gold is the go to money in times of inflation and economic crisis. Gold is a hedge against inflation. If you are saying to yourself right now that gold is not money, and that it is just a shiny relic that people wear around their necks, then you are dead wrong.
Gold has been money for over 6,000 years. Gold and silver were the first forms of real money that met the requirements of sound money. Plato and Aristotle spoke of sound money to be
1. The ability to be durable. It must stand the test of time and not wither.
2. The ability to be portable. Good money needs to hold value in a small space.
3. The ability to be divisible. Real money should have the ability to be divided evenly and still hold its value. Also known as fungibility. Diamnonds are not fungible because each diamond has it's own value.
4. It must hold a rare value or quality.
Aristotle was aware of something about money that most people today would struggle to comprehend. Paper money has no value, and that is what Aristotle described in his qualities of money.
Paper is paper. It can be made on the spot and printed at will. Paper is neither rare or durable. The trust that we put into paper is the only thing giving it value at this point.
A piece of paper with ink stamped on it is essentially what our dollar bill is. That's all. If someone gave you some a sheet of paper to wash their car, it is the same thing as receiving a paper dollar. Ink is the only thing making a difference. Both are paper.
If someone gave you some oil, copper, silver, or gold in exchange for a pack of gum, then the transaction makes sense. Those are real assets. Someone's hard work and time went into producing those assets, so they hold a real value.
Our dollars become more worthless every day as our government prints dollars out of existence. A dollar collapse is happening in plain sight, yet few will recongnize the signs before it is too late. Gold and silver were used as the first real currency for this very reason. Gold and silver cannot be mass produced at will.
Gold and silver exploration companies have to survey and drill sites, and then they must mine the ore out of the ground. All of this takes energy and time. Only until relatively recently have governments used paper money as currency. It is important to not that there have been hundreds of paper currencies in history, and they all effectively went to zero.
Buying gold coins and silver coins are the only proven way to protect your assets during times of inflation. Gold will hold its value while paper money falls in value.
Not only is our dollar falling in value, but gold is in the middle of a 20 year bull market. The gold price is at an all time high of over $1,100/oz. People flock to gold in times of Inflation. Why do people do this? It's because gold can not be inflated. What does inflated even mean?
If you inflate a balloon, then the size gets bigger. Our dollars are experiencing the same such thing. If our government keeps printing money, then more money will be in circulation. You see higher prices because you have more dollars chasing the same amount of goods.
If you print more money then you have inflation, but inflation does not mean higher prices. Higher prices are the result of inflating the money supply. Basically, you should be diversifying out of dollars as soon as possible.
You should only be invested in gold bullion, silver bullion, gold coins, silver coins, and mining stocks over the next few years at least. India, China, Arab states, and several other countries are dumping dollars and buying gold. You decide if it's time to get invested in gold and silver.
God bless. - 30294
Gold has been money for over 6,000 years. Gold and silver were the first forms of real money that met the requirements of sound money. Plato and Aristotle spoke of sound money to be
1. The ability to be durable. It must stand the test of time and not wither.
2. The ability to be portable. Good money needs to hold value in a small space.
3. The ability to be divisible. Real money should have the ability to be divided evenly and still hold its value. Also known as fungibility. Diamnonds are not fungible because each diamond has it's own value.
4. It must hold a rare value or quality.
Aristotle was aware of something about money that most people today would struggle to comprehend. Paper money has no value, and that is what Aristotle described in his qualities of money.
Paper is paper. It can be made on the spot and printed at will. Paper is neither rare or durable. The trust that we put into paper is the only thing giving it value at this point.
A piece of paper with ink stamped on it is essentially what our dollar bill is. That's all. If someone gave you some a sheet of paper to wash their car, it is the same thing as receiving a paper dollar. Ink is the only thing making a difference. Both are paper.
If someone gave you some oil, copper, silver, or gold in exchange for a pack of gum, then the transaction makes sense. Those are real assets. Someone's hard work and time went into producing those assets, so they hold a real value.
Our dollars become more worthless every day as our government prints dollars out of existence. A dollar collapse is happening in plain sight, yet few will recongnize the signs before it is too late. Gold and silver were used as the first real currency for this very reason. Gold and silver cannot be mass produced at will.
Gold and silver exploration companies have to survey and drill sites, and then they must mine the ore out of the ground. All of this takes energy and time. Only until relatively recently have governments used paper money as currency. It is important to not that there have been hundreds of paper currencies in history, and they all effectively went to zero.
Buying gold coins and silver coins are the only proven way to protect your assets during times of inflation. Gold will hold its value while paper money falls in value.
Not only is our dollar falling in value, but gold is in the middle of a 20 year bull market. The gold price is at an all time high of over $1,100/oz. People flock to gold in times of Inflation. Why do people do this? It's because gold can not be inflated. What does inflated even mean?
If you inflate a balloon, then the size gets bigger. Our dollars are experiencing the same such thing. If our government keeps printing money, then more money will be in circulation. You see higher prices because you have more dollars chasing the same amount of goods.
If you print more money then you have inflation, but inflation does not mean higher prices. Higher prices are the result of inflating the money supply. Basically, you should be diversifying out of dollars as soon as possible.
You should only be invested in gold bullion, silver bullion, gold coins, silver coins, and mining stocks over the next few years at least. India, China, Arab states, and several other countries are dumping dollars and buying gold. You decide if it's time to get invested in gold and silver.
God bless. - 30294
