What The Rich Do To Protect Their Wealth (You Should Do It, Too)

in #steemsilvergold6 years ago (edited)

If you're keeping your wealth in the form of national fiat currencies such as the US dollars or Euros, then you’re making a mistake.

No, your bank account is not being hacked. What’s happening to it is far more complex. You see, powerful central banks are actively devaluing all fiat currencies.

What does that mean?

It means they print unlimited amounts of this ‘paper’ money.

I guess they're trying to make it rain?

Okay, so what's the big deal about that? I like the occasional rain.

The problem with printing out money is it devalues all fiat currencies.

I don't know if you've heard of him, but a guy named Ron Paul once said… “The Federal Reserve System is nothing more than legal counterfeit.” 😁 It kind of freaks me out to just say that on the blockchain, but Ron Paul said it, not me.

So there.

In other words, the purchasing power of the US dollar is becoming more and more worthless by the year, the month, the week, the day, the hour. Nah, by the minute!

A person’s purchasing power = real wealth.

And, when they’re stealing that purchasing power (from we the people), without us even knowing or paying any attention?

Well, that kind of sucks as much as eating cookies with no sugar in them would suck. Why would you do that to an innocent cookie?

That's why, if you've ever seen @goldmatters page, he is always saying that "gold is money."

Here's a random fact!

It all started in 1913...

That’s when the Federal Reserve was created.

In 1933, FDR’s executive order made it illegal to hold gold coin, bullion, or certificates. In 1944, Bretton Woods (international monetary agreement) established the USD as the world’s reserve currency and tied itself to gold.

Then, in 1971, president Nixon shocked everyone and took the USD off that gold standard. Meaning our money no longer has to be backed by gold or something of value, you can just print endless amounts of it or do whatever you want.


Image source

BOOM!

That means it's not worth as much because there's no guarantee that there's gold or anything of tangible value to back it!!

So what happened exactly after Nixon did that?

Well, you can guess… 'cause I kinda already said it...

Unlimited printing by the elites.

And it's still going down like this, even now.

Yay!

Worthless money for everyone!

Bankruptcies? Great, print more. Elites making bad decisions that impact society on every level? Great, print more. Economic collapses? Great, print more.

Want to know something super crazy??

$1,000,000 in 1918 equals only $50,000 in 2018.

That’s insane!

That means that $1 million dollars only maintained 5% of its purchasing power!

Just think.

If your great-grandfather saved one million for you back then, and gave it to you as a gift today, you'd only be getting $50,000 dollars worth.

Womp, womp, womp. 😩

Now, if that $1 million was put into gold, it would have lost 0% of its purchasing power.

In fact, if your great-grandfather had put that 1 million in gold (instead of keeping it in paper money), it would be worth MORE than a million today...

...and you'd receive MORE than a million dollars!!!

Like, a lot more. Dang. Look at this!

1 oz Gold = $20 in 1918

1 oz Gold = $1,300 in 2018

😳 😱 😳 😱 😳

Which brings me to my next point…

If fiat currencies have no intrinsic value, then what does?

Physical assets (no, I'm not talking about amazing beach bodies or anything, you silly goose).

Precious metals like silver and gold! Derp.

“If you don’t own GOLD, you know neither history nor economics.” - Ray Dalio, American billionaire investor and founder of one of the world’s largest hedge funds

Don't worry, though. If you didn't know, it's not really your fault. It's not like we were taught this stuff in school. We were mostly taught how to divide the alphabet in algebra class which has proven to be very useful in real life. 😑

In fact, gold and silver has had intrinsic value for over 5,000 years of recorded history. The Egyptians used it, the Greeks used it, the Romans used it, everybody was usin' it!

Before that, @goldmatters let us know that conch shells were where it was it!

I like Bitcoin and STEEM and other cryptos as well for preserving the purchasing power of my wealth.

Imagine a double whammy, a gold-backed crypto!

I wrote about one here!! Weird graphics included.

All of those are great alternatives as the US dollar continues on with its self-destructive behaviors.

On the flip side to the inflation story, most people hold their wealth in not only fiat money but in business interests, property, stocks, bonds, managed funds, homes, jewelry, and cars. Inflation isn’t completely evil. It can be used as long as it’s contained (and matched by wage growth).

With that said, diversification is a good idea to protect your wealth, aka don't put all your eggs in one basket.

I've always felt like only really rich people could afford to buy any amount of gold that would be worth their time. Diversifying by purchasing gold has kind of been on my "to-do list" for a few years.

Because of @goldmatters introducing me to this company called Mene on steemit, I realize now that's not true and I could invest in gold, because even having just a little bit makes a difference.

Mene sells gold and platinum jewelry and they're transparent about their pricing and how much the jewelry is worth based no the current market price of gold.

Investment AND jewelry? Yes please.

There's also gold dice, and a gold guitar pick if you're not into jewelry.

For Menē 24k investment jewelry here: http://Mene.com/invite/JrT26p

This is @goldmatters link, because he deserves it.

<3, @nomadicsoul

P.S. I'm not a financial advisor, this stuff is just my opinion. I'm just some girl on steemit talking about gold incase you're interested in investments outside of crypto, or if you've thought about getting gold for a long time like I have, but you've kinda thought maybe it was slightly inaccessible somehow.

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yes!!! I love mene! :)

Wow!! What an awesome piece! I am so impressed @nomadicsoul :) you knocked this out of the park. You sure know a LOT about Vang !!

Thanks!!! There's a reason why I know this actually, maybe I'll tell you sometime...

Because you are an awesome reasearcher? ? :)

Partially, but nope! It's something else

Must be because you LOVE VANG

You forgot interest but even then you are right. Question then is what type of gold you buy! Cheap as in bullion or a bit more expensive and wearable. Thx!

True, you're right! hehe the answer is always wearable @goldrooster! I think that's because I'm a girl, though, and I hate to admit it...but I do like jewelry

I also like investing in gold. I bought some a while back when I started to sell some stocks, then I started to get into crypto. I think that we're overdue a correction in the stockmarkets. When that happens I'll sell the gold and get back into stocks again. At least that's the plan.

I live in Korea where there's a premium on the gold price, because of import duties. The price is about 10% higher than other countries. I didn't mind paying the premium, because I'll sell in Korea (at the same premium).

Oh that's good that you can also sell it for 10% more!! You're into all kinds of interesting things!!

But I have to pay the 10% premium in the first place. I guess I could buy it in another country and then smuggle it into Korea. A gang of people were caught doing that a few years ago. The lengths some people will go to make some money: http://www.dailymail.co.uk/news/article-4537116/South-Koreans-arrested-smuggled-77million-gold-rectum.html

Great post, they do not teach economics, the right way in the government indoctrination classes. But is is important to start ASAP, because when you think it is the time to start accumulating, 90% of the sheep also have the same idea, and you won't be able to get it...........Go get ya some.

Ohh good point about the sheep! Zig when they zag lol I'm going to get some this year for sure. Still investing mostly in crypto right now, but I think in a few months then I will be ready

Welcome! I love seeing more and more people posting about this stuff, makes me happy!

I just wanted to add my opinion that precious metals backed crypto currency is NOT necessarily a good thing. The implementation of such a thing would be of utmost importance, but generally, I like my assets nice and separate for many reasons, diversification and reduction of counterparty risk chief among them. A decentralized open ledger is what adds value to blockchain. Gold has intrinsic value throughout the ages. IMO, no need to mix those, especially if we're talking about physical, in-your-hand metal. Also, steam is great, but it's inflationary too. At least it has rules though.

Thanks for posting!

@nofiat thanks to YOU for commenting! Not to me for posting haha. Separation is typically good. I still think experimenting with a gold backed crypto would be interesting. We’ll see though! I can def. see why you like them separate

Blockchain and cryptocurrency is changing the landscape to our financial landscape. The ability for banks to "print money" have been putting the majorities at a disadvantage. The rich have been getting richer thanks to preferential lending schemes.

There is no doubt that major institutions and government body are looking to restrict cryptocurrencies. But I can see a bright future for cryptocurrencies as an alternative to fiat currencies. Perhaps there will be a hybrid system in the future.

yeah!! I can totally see fiat going bye-bye. It'll be interesting to see what happens. You're so smart

I foresee a future where we do not carry any physical currencies and a currencies that is acceptable world wide..... Gone will be the days where we have a wallet of different currencies or denominations...

Got myself some silver for now. Next target is for getting a bit more and then going full on crazy for Gold (maybe a little palladium too)

Diversification is a major part of a good investment portfolio. For crazy crypto investor like us there is nothing like gold that can calm the roughness of their portfolio.

haha good point! We are crazy crypto investors! I love it

Awesome article !!

You are always amazing me with your facts.

I will like to know the secrets 😂 .

You're amazing me! You killed a WEIRD creature btw! haha I just saw that post and I can't believe it's a coconut lol that was hilarious

Haha. Life is fun when look at things closely than merely stare at them.

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