Gold is the solution to currency debasement

12.18.23 - Gold is the solution to currency debasement

Gold last traded at $2,027 an ounce. Silver at $23.80 an ounce.

Gold is the solution to currency debasement -  Ahead of the Herd

Indeed, fiat currencies are being destroyed because of reckless money-printing by governments and this is the reason to own gold.

You don't purchase gold to take advantage of short-term price fluctuations in the market, you buy it because it will always gain in value compared to paper money.

Over time, gold is a store of value because it is not subject to the inflationary pressures fiat currencies are. Since 1913, when the Federal Reserve was created, the US dollar has lost 96% of its value.

The extraordinary value of gold versus dollars is easily grasped by conducting a little thought experiment. Let's say you were 18 years old in 1971, and just beginning your working life. In five years time you make some smart investments and manage to bank $100,000. At age 23 you have a decision to make: Is it better to plug that money into a retirement savings plan, or buy $100,000 worth of gold, which in 1976 is trading at $125/oz? You decide to buy gold.

Fast forward 47 years. You are now 70 years old and ready to retire. In 2023, gold is worth $2,000 an ounce - 16 times what you bought it for in 1976! The gold bars and coins just sat there in a safe, not earning interest. The 800 ounces you bought at $125/oz ($100,000) are now worth $1.6 million. This retirement nest egg would easily see you through to the ripe old age of 85, and that's by withdrawing $106,000 a year. Live more modestly, and you could live to 100. Or leave a bunch of money to your kids, grandchildren, or charity.