Rising Prices are Dangerous

Money Pit


Gone are the days of which one paycheck could feed a whole family. Prices are rising and the cost of living is going up. Yet, our incomes cannot adjust to the increased costs of living. This is due to a rise in prices, also known as inflation. Inflation has devastating effects on our financial life. We afford less even though we are still earning the same amount as before. This is primarily due to an increase in the amount of dollars circulating in existence. This causes the money you have to lose purchasing power because it is being printed at points of billions of dollar per month.   Saving money is much harder today because we can buy less with a fixed income. Many people are retiring only to find out that the amount they saved is not enough to live off of.  So how can we fight inflation and still preserve the wealth?


The Golden Rule of Money

Unlike currency, which can be printed at will, gold and silver have finite amount available and tend to preserve wealth over time. For over 5000 years, gold has had a preserved value and today serves as a commodity used in electronics, jewelry, and investing. Today the prices of oil and other commodities go up but gold also tends to rise with inflation. It is an excellent way to preserve ones wealth without having to lose purchasing power over time. An excellent example of how gold has preserved wealth is by its increase in value. Take for example the Dow Jones Industrial Average which was worth around $11,000 in the year of 2001 and now is worth around $15,500 in the year of 2013. This is an increase of about 30% in the last 12 years. However, 1 oz of gold was worth around $250 in 2001 and is now worth over $1,345 in 2013. That is a whopping increase of more than 500%! This goes to show that gold increases over time and adjusts to inflation far better than the Dow Jones.

It is also very wise to invest in Silver considering it too adjusts for inflation and moves in a similar trend with the Gold Price. Silver is also much more affordable and can be a wise investment for the long term wealth preservation.

Did you know: In Article 1 Section 10 of the US Constitution it states "No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts."

This goes to show that even the fathers of the constitution trusted in the gold and silver metals.


Gold and Silver


Tips on Starting to Invest in Gold and Silver

The best way to get started on investing on gold and silver is to do further research on the topic investing in Gold and Silver. Financial education can be the key to helping you unlock a brighter tomorrow and a safer investment. Education is key and there are many resources on the web that can help you get started. 

One of the leading expert in the field of investing in precious metals in Mike Maloney. He himself, invests in something that he preaches about. He has done many lectures and films regarding the subject of inflation and preciouse metals that will open you mind to a better tomorrow.  He was a close adviser for Robert Kiyosaki, author of "Rich Dad, Poor Dad" a best selling book on finance. 

The video series is titled "The Hidden Secrets of Money" and is located on YouTube by Mike Maloney.

He also has an superb book, which I myself have read, called "Guide to Investing in Gold and Silver: Protect Your Financial Future" By Mike Maloney.