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.
Those four requirments are important because Plato and Aristotle knew something that most people today are not aware of. Our paper dollar, and all paper money for that matter, do not meet any of the requirements of sound money.
Paper has no intrinsic value because it's paper. It can be produced on demand. There is no rarity or durability.. The only thing giving value to paper money is the trust that we put into it.
A piece of paper with inked stamped all over it is essentially what our dollar is. That's it. If someone told you they would give you a sheet of paper for a pack of gum, it is equivalent to what our dollar is. There is no difference between the two, and that is where many get confused.
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.
Mining companies have to put lots of money and resources to even get close to producing any gold or silver. Energy and time is consumed in this process. Paper currency is a relatively new thing in world history. Since the start of using paper as currency, and there have been hundreds, all of them have failed.
Gold and silver coins have proven throughout history to hold their value and hedge against inflation. While fiat paper currencies plummet, gold will continue going to the moon.
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?
Think of a balloon that you inflate. Basically, you are making that balloon bigger by blowing air into it. Well, our dollars are being inflated in much the same way. The more dollars that our government prints at will means more dollars in circulation. In this situation you have more dollars chasing the same amount of goods, which results in higher prices.
Inflation does not mean higher prices, it simply means printing more money. Higher prices are the result of printing more money. So, get out of dollar related assets now before you lose out big time.
Gold, silver, gold bullion, silver bullion, and mining stocks should be in your investment portfolio right now. China, India, and Arab nations are currently getting out of dollars and into gold. Is it time for you to do the same?
God bless. - 23309
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.
Those four requirments are important because Plato and Aristotle knew something that most people today are not aware of. Our paper dollar, and all paper money for that matter, do not meet any of the requirements of sound money.
Paper has no intrinsic value because it's paper. It can be produced on demand. There is no rarity or durability.. The only thing giving value to paper money is the trust that we put into it.
A piece of paper with inked stamped all over it is essentially what our dollar is. That's it. If someone told you they would give you a sheet of paper for a pack of gum, it is equivalent to what our dollar is. There is no difference between the two, and that is where many get confused.
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.
Mining companies have to put lots of money and resources to even get close to producing any gold or silver. Energy and time is consumed in this process. Paper currency is a relatively new thing in world history. Since the start of using paper as currency, and there have been hundreds, all of them have failed.
Gold and silver coins have proven throughout history to hold their value and hedge against inflation. While fiat paper currencies plummet, gold will continue going to the moon.
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?
Think of a balloon that you inflate. Basically, you are making that balloon bigger by blowing air into it. Well, our dollars are being inflated in much the same way. The more dollars that our government prints at will means more dollars in circulation. In this situation you have more dollars chasing the same amount of goods, which results in higher prices.
Inflation does not mean higher prices, it simply means printing more money. Higher prices are the result of printing more money. So, get out of dollar related assets now before you lose out big time.
Gold, silver, gold bullion, silver bullion, and mining stocks should be in your investment portfolio right now. China, India, and Arab nations are currently getting out of dollars and into gold. Is it time for you to do the same?
God bless. - 23309
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