How Does Inflation Impact You?
“Paper Money Eventually Returns to its intrinsic value — zero.”
– Voltaire
“Inflation” is a word that you and I hear almost every single day but how does inflation impact you? We hear all about the government overspending dollars and printing new money as though they were Johannes Gutenberg (the man who invented the printing press in 1436) himself. What does all of this new and seemingly free money mean and how does inflation impact you? Let’s break it down.
WANT TO HEDGE YOUR WEALTH
AGAINST INFLATION?
What is Money?
When you think about money, you are probably thinking about green bills that you keep inside of your purse or wallet. You may instead think of a number that you see when you log into your online banking portal. This money that you are thinking of is also known as “Federal Reserve Notes”. These notes are given to us by the United States Government from the Federal Reserve with a promise that they will hold their value. In 1971, president Richard Nixon took the United States of America off of the Gold Standard. This meant that prior to that year, your dollar was backed by something other than just an empty promise. You knew for a fact that your dollar was worth something.
Inflation
Today, our money is losing its value rapidly. Inflation has never been occurring so rapidly. We carry around these notes that are backed by a false promise as they become more and more watered down. Unfortunately, the United States Government does not like anyone creating competing currencies because they fear that their Federal Reserve Notes will become less popular. That is why the government is aiming to regulate any type of crypto currencies and any other types of currencies. Money is simply a storage of wealth that holds some sort of value. Different types of money are more effective than others. Right now, the United States Dollar is not very effective and that is why Gold is true “Money”
How does inflation impact you when you own gold in your portfolio? Well, according to history, those who went through rough financial times and owned gold ended up far better off than those who did not. Gold is what you would call a “Real Asset”. It is physical and it exists. There is always someone who is looking to buy it. It is not backed by some false promise or home that the government tells you to have in it. Every nation across the entire world places value on it and they have done so since the beginning of time. It is well known by those with a high financial IQ to be used to protect wealth. Gold is not some sort of cash producing investment that will make you rich. Just like holding onto a stack of $100 bills will not make you rich. Rather, it is a hedge or a protection for your portfolio against the looming inflation that our nation faces.
What Is Inflation?
Inflation is what happens when a country has a currency known as a “Fiat Currency” that is not backed by any sort of standard. The
government has the ability to freely print more money any time they feel the need to. The fiat dollars ultimately have no value. As Voltaire says, “Paper Money Eventually Returns to its intrinsic value — zero.”. How does inflation impact you? You can look at the history of some of the biggest nations of all time to see the currency crisis take place. Rome, France, Germany, Argentina, and many others have all fallen to the fate of the fiat currency.
When you water down a currency by creating more money out of thin air, you ultimately dilute and devalue the worth and value of every citizen’s money. For governments, the first taste of creating money out of thin air is like a druggie’s first hit of an incredibly addictive substance. Once your government finds that they can print “Wealth” with the press of a button and have no immediate consequences, it is downhill from there. This is proven by every country listed above. They all went down in flames due to the fiat currencies created by their governments. This is why it is so important to maintain morally and ethically good people in government.
How Does Inflation Impact You?
If you are the type that likes to store your money in “Federal Reserve Notes” or “United States Dollars” you are due for a rude awakening. Just throughout the year of 2021 we saw inflation have massive impacts on gas prices and groceries. Many people see the rise in prices and believe that the cost of goods are going up. This is actually not true. What is really happening is the value of the dollar is going down and going down rapidly. If you hold onto dollars in your safe at home or in your local bank, you will find yourself gravely affected by inflation. You have been told all of your life to save your money. You have saved all of your money, put it into an IRA and into the bank and now the government steals massive amounts from you via inflation. It is legal theft performed by our government. Unlike the dollar, gold keeps its purchasing power in regards to buying goods and services.
If you were to purchase an entry level car in 1950 with 6 one ounce gold coins, you would still today, in 2022, be able to purchase an entry level car for the same 6 gold coins. This means that, unlike the United States Dollars, gold holds its value in both recessions and depressions.
How Can You Protect Yourself From Inflation?
Now that you know exactly what money is, what inflation is, and how does inflation impact you, how do you protect yourself from it? The best
way to hedge your wealth against inflation is to buy real assets. Real assets such as gold, land, and other physical items that store value. This will protect your wealth from being stolen straight from under you by the United States Government inflating our dollars. Taking small to medium sums of your wealth and putting it into gold and other precious metals is the most popular way to hedge against the hyperinflation that is setting in. It has become very popular for those from the ages of 40 – 60 to use their IRA to purchase gold. This adds a hedge and a layer of protection for your wealth.
Patriot Gold Supply
Don’t let inflation steal your future and your retirement. Inflation will have a huge impact on the rest of your life if you don’t take action now to protect yourself. Whether you are a first time gold investor or you have been purchasing precious metals for years, Patriot Gold Supply can help you get to your investment goals. We have a team of Account Executives that are here to guide you in the right direction so that you can best protect yourself. Our Account Executives are not wealth advisors but rather professionals in the world of gold and precious metals. For example, we help you to determine whether small sums of silver coins are best for you or if one ounce American Gold Eagle coins are best for you.
You can reach one of our Account Executives by dialing 888-959-1776. We are America’s highest rated and most reviewed patriotic gold supplier and we have proudly served all 50 states for over 30 years. With convenient payment options and the ability to ship precious metals directly to you, patriotgoldsupply.com makes the precious metals purchasing process easier than ever.
WANT TO HEDGE YOUR WEALTH
AGAINST INFLATION?