Gold historically is both a store of value, meaning when you own gold it increases in value, and also a medium of exchange, meaning it has been used as “money” for thousands of years.
Most people store their value (aka “save”) using dollars. Except dollars are not a store of value. The real historical rate of inflation is about 5-6% per year, which means when I save in dollars I am actually losing 5-6% per year. Dollars also don’t have any sort of intrinsic value which means outside of the government legally forcing us to use them, nobody would actually want or care about dollars.
Here is a real example:
In 1967, for a man to buy a nice suit, it cost about $35.00 dollars.
1 oz of gold also cost about $35.00.
So 1 oz of gold could buy a suit.
Today, to buy a nice suit, it costs around $2,000 dollars.
1 oz of gold also costs about $2,000.
So 1 oz of gold could buy a suit….but $35.00 couldn’t.
That means if you saved $35.00 in actual dollars since 1967, you lost about 5,614% of your money.
If you bought gold in 1967, you’d have made about 5,614%.
It’s very likely that in another 50 years, if we keep doing what we did in the last 50 years, it will cost $112,000 dollars to buy a suit and an oz of gold will cost about the same.
The nail in the coffin for me?
The Federal Reserve Bank, the organization that creates the U.S. Dollar, has 79% of their reserves in gold. Not dollars. Not U.S. Treasuries. Not Crypto-Currency. Gold.
In other words, they sell dollars to us, but they would rather own gold themselves.
But I think the best answer to this question is to simply ask it to you.
Why don’t you own more gold?
If you want to, Click Here to purchase some today!
Maya Weinreb | Founder & CEO