Gold IRA, Silver IRA, and Precious Metals IRA are THE best way to protect your wealth and give you Peace of Mind when everything in the economy becomes uncertain and volatile. Read the short articles below to get a better understanding of how precious metals can preserve your wealth. The purpose of this website is to give you very basic examples illustrating that “investing” in precious metals is not investing in the usual way where one expects to gain value to their investment over time, but to store wealth so that it can be protected from inflation and hyperinflation. The following examples are to help one understand the difference between real Money, and fiat currency.
Comstock
Bullion
The Ore That Made The Morgans
Precious Metals for capital and
wealth preservation
wealth preservation
Comstock
Bullion
The Ore That Made The Morgans
Precious Metals for capital and
wealth preservation
wealth preservation
Why bread should cost ONE DIME
In our time we don’t give a second thought to rising prices, it seems to be a natural and unavoidable part of the economy. There are exceptions of course; manufactured items often go down in price, especially electronics and the latest technologies (think of how flat screen TVs have come down in price since they first came on the market). However, if you think of things that are staples, such as food, housing, lumber, etc., the prices generally move higher, even if they fluctuate over short periods, their tendency is to rise over time. Let’s use the example of the price of a loaf of bread. Thinking back thirty years the average price of bread was about 70 cents for one loaf. Today’s average price for bread ranges between $1.50-$2.50. In general the rise is not noticeable, although in the past year prices have been rising rapidly due to record high gas prices and an increase in the money supply. When the amount of currency is increased it is the definition of inflation. Rising prices are not inflation, but the effects of inflation.
Imagine that you are living in the year 1890, would you think back to 1860 and how much cheaper bread was then? No, the reason being we had a stable currency which was based (since the Constitution) on a Silver standard. A loaf of bread would be about 10 cents, that 10 cents was a dime coin made from 90% Silver. If thirty years went by bread would still cost about a dime. Anyone who was around in 1965 remembers the introduction of new coins, distinctive because of the copper edge of the coin. They were called “sandwich” or “clad” coins, which is what we still have today. It is not difficult to see that once there was no longer a requirement for coins to be made of Silver or Gold, there was nothing to anchor the value of the dollar (or dime) to. This was the beginning of the debasement of our currency which historically has led civilizations into ruin. The Romans gradually debased their coinage, as did Henry VIII among others. This is why the Founding Fathers defined what a dollar was and made it law in the Constitution. They were trying to insure the nation had a stable future.
Now back to the price of bread…if you take the value of an ounce of Silver at today’s prices ($22.20 on 5/19/22), divide by ten to get the value of a dime, you have $2.20, which is about the price of a loaf of bread. As you can see the price of bread is about the same today in Silver value, as it was in 1890. This illustrates how the public has been deceived by the word “dollar”, because the definition is a Silver coin of a specific weight, not just any arbitrary number with a $ in front of it. The fear is, how can one trust the value of $ if it no longer has anything to keep it fixed in place.
In our time we don’t give a second thought to rising prices, it seems to be a natural and unavoidable part of the economy. There are exceptions of course; manufactured items often go down in price, especially electronics and the latest technologies (think of how flat screen TVs have come down in price since they first came on the market). However, if you think of things that are staples, such as food, housing, lumber, etc., the prices generally move higher, even if they fluctuate over short periods, their tendency is to rise over time. Let’s use the example of the price of a loaf of bread. Thinking back thirty years the average price of bread was about 70 cents for one loaf. Today’s average price for bread ranges between $1.50-$2.50. In general the rise is not noticeable, although in the past year prices have been rising rapidly due to record high gas prices
and an increase in the money supply. When the amount of currency is increased it is the definition of inflation. Rising prices are not inflation, but the effects of inflation.
Imagine that you are living in the year 1890, would you think back to 1860 and how much cheaper bread was then? No, the reason being we had a stable currency which was based (since the Constitution) on a Silver standard. A loaf of bread would be about 10 cents, that 10 cents was a dime coin made from 90% Silver. If thirty years went by bread would still cost about a dime. Anyone who was around in 1965 remembers the introduction of new coins, distinctive because of the copper edge of the coin. They were called “sandwich” or “clad” coins, which is what we still have today. It is not difficult to see that once there was no longer a requirement for coins to be made of Silver or Gold, there was nothing to anchor the value of the dollar (or dime) to. This was the beginning of the debasement of our currency which historically has led civilizations into ruin. The Romans gradually debased their coinage, as did Henry VIII among others. This is why the Founding Fathers defined what a dollar was and made it law in the Constitution. They were trying to insure the nation had a stable future.
Now back to the price of bread . . . if you take the value of an ounce of Silver at today’s prices ($22.20 on 5/19/22), divide by ten to get the value of a dime, you have $2.20, which is about the price of a loaf of bread. As you can see the price of bread is about the same today in Silver value, as it was in 1890. This illustrates how the public has been deceived by the word “dollar”, because the definition is a Silver coin of a specific weight, not just any arbitrary number with a $ in front of it. The fear is, how can one trust the value of $, if it no longer has anything to keep it fixed in place.
Why bread should not cost One Billion Marks
When currency is not backed by something tangible, as was the United States with it’s Silver standard, the ability for governments to print money is not kept in check. This is known as a fiat currency. The most often cited example of this is what happened to Germany in the 1920s. Germany had been on a Gold standard, but went off it in 1914 at the beginning of the first World War. During WWI Germany was confident that they would emerge the victors. Having been defeated however, they now had an unbacked currency which at first experienced gradual inflation caused by a huge war debt. This inflation stayed fairly manageable in the first years after the war, but in 1921, Germany’s newly formed government, the Weimar Republic, had to begin war reparation payments to France and Belgium. This was the beginning of what led to a chain of events resulting in printing more unbacked currency and inflation quickly became hyperinflation.
Using the example of the price of a loaf of bread, one loaf before the war was about 9 Marks. By the beginning of 1923 it was already 250 Marks, but between January and November 1923 when hyperinflation went wildly out of control, a loaf of bread now cost Eine Billion Marks. In the way numbers are designated, their billion is 1000 million, which to us is 1 Trillion. Eventually their bread prices hit 200,000 million Marks. One often see pictures of people with a basket or wheel barrow full of German Marks to pay for a loaf of bread. If that pile of cash was only enough to buy a loaf of bread, it would mean that it was the equivalent of one Silver U.S. dime!
Preserve your wealth!
The examples of “One Dime” and “One Billion Marks” are good illustrations of why precious metals are the ideal way to protect your wealth. Even when a fiat currency is under fairly stable management, it always has the potential to be abused and going out of control. There is simply no safer way to insure that your wealth will have lasting value than locking your savings into physical precious metals.
Although the hyperinflation in Germany happened one hundred years ago, it is just one of many examples. This still happens in our time with the currencies of many countries. Most notably the Zimbabwe Dollar, and the Venezuelan Bolivar. Every example has their unique story of why it’s currency devalued as much as the German Mark, but the common cause of them spiraling out of control was that they were all fiat currencies. Now, even though the United States has a fiat currency, we do not necessarily expect this will ever happen here. However, even though we experience relatively gradual inflation in the U.S., storing one’s wealth in precious metals gives you the confidence that your wealth will not loose it’s value over time, or worse yet completely evaporate if inflation goes out of control.
Many people understood this ever since Silver was removed from coinage, and kept as much of their Silver coins as they could, adding to their collection when prices were still low. Gold was another matter, since in 1933, people were required to turn in their Gold or face a possible $10,000 fine, and up to 10 years in federal prison! This prohibition of Gold ownership ended in 1974. Also in 1974 the U.S. government established a system for Individual Retirement Accounts or IRAs. This allowed people to have their savings and investments without them being subject to taxes. In 1986 the U.S. allowed the inclusion of certain collectable Silver and Gold coins in an IRA, and in 1998 it was approved to include Silver and Gold bullion in the form of bars and rounds. To get detailed information on how to hold precious metals in an IRA, visit Augusta Precious Metals, they can help you add Gold and Silver to your existing IRA, or roll over your IRA into a Gold IRA. Augusta has been rated “the most trusted in the U.S.” by the IRA Gold Advisor.
Although Augusta Precious Metals is the most highly recommended company for an IRA, there is also Birch Gold, which can also include Platinum or Palladium as metals that can be included in an IRA, and for those interested, they also can have an IRA backed by Bitcoin. These companies can store the metals for you, or you can take physical possession if you prefer. Some people also like the variety there is in the coin market. One can find coins from various mints of foreign countries, as well as rounds (often replicas of older U.S. coins, but not in a designated Dollar amount which is why they are referred to as rounds), and there are also mints that offer bars of various weights. Always be sure they are pure and not just a plated tribute coin. They should say 99.9% pure. There is also a higher premium paid when buying individual coins, so for pure investment purposes it is best to go with companies such as Augusta Precious Metals or Birch Gold.
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