Thursday, April 9, 2015

WHY USE A BANK TO SAVE MONEY? GOLD VS. THE DOLLAR.


Want to start a savings plan?  Here is one for you.  Pull all of your savings out of the bank, buy a heavy-duty, fire-proof safe, and put your money into gold.  Not a "certificate", but real, hard, tangible gold; coins, bars, bullion, etc. 

Not only does gold provide a hedge against inflation, but by keeping your own wealth in your hands, you have total control over it.  Why would you keep your money in a bank that's giving you 1/2% interest while they loan out the same money at 9, 10, or even 15%.  Why make the Banksters rich?  They don’t create wealth; they just move it from an entry on one spreadsheet to another.

There is a finite amount of gold in the world.  It takes much effort to mine, process, and get that gold out on the market.  Not to mention, gold has been considered a symbol of wealth for thousands of years, and that's not likely to change.  Here is a little lesson in gold vs. the Dollar.  A little over one hundred years ago, a man could buy a top-of-the-line suit with a $20 gold piece (an ounce of gold).  Can you buy a top-of-the-line suit with a $20 bill today?  No way!  But you could take that same one ounce gold coin and buy that suit!  See what I mean? 

Gold doesn't really appreciate in value (until the world's supply runs out) over time, it's the value of the Dollar that depreciates due to inflation, which means it takes more Dollars to buy the same amount of gold.  A paper Federal Reserve Note, isn't worth much at all. (it costs less than 6 cents to print).  It's not backed by anything, and the only reason a $10 note is worth more than a $1 note, is because the government says it is.  There is no tangible or intrinsic value to paper money, and the government just prints it out of thin air!


I am not a financial advisor, and any investments should be made with the guidance of a professional.  Remember to invest with your head, not ever it.  Only invest money you can afford to lose.

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