Gold and Silver Why Create A System GolverCard.com

Gold and Silver GolverCard.com Investors have long understood that Gold and Silver are an excellent hedge against inflation.Gold and Silver Inflation is caused, in part, by the excessive money printing by central banks. Gold is scarce, costly to produce and comes in small quantities. The analysis is straightforward and we will break it all down to help you better understand it all in a 2 Part post.

How Inflation Works GolverCard.com Compare to the 400% growth in base money engineered by the Federal Reserve since 2008 for example, and it’s easy to see how a lot more currency chasing a small amount of gold will cause the dollar price of gold to rise over time, and silver along with it. The basic idea that land, gold, silver and art outlast and outperform riskier assets such as stocks, bonds, and cash seems sound when viewed from the perspective of centuries, decades or years and not just a few weeks and months. This may be difficult to grasp for anyone who has been badgered with mantras like...

Protect Your Money GolverCard.com “stocks for the long run” by Wall Street salesmen – who by the way are more concerned with their commissions than their clients – and by the atrocious idea that hard assets like physical gold and silver are very costly to own and difficult to manage and liquidize. Yet stocks, bonds, and even cash all involve some claim on a third party and therefore contain credit risk in addition to whatever market risk they embed. The investor is always at the mercy of the issuer.

Gold and Silver Lasts GolverCard.com Companies eventually go bankrupt. Bonds eventually default. Every paper currency in the history of the world has eventually proved worthless and there is little reason to believe the reigning paper money champions such as the dollar, euro or yen will prove different in the fullness of time. In contrast, the value of gold and silver is intrinsic. If you own it, you own it. There is no issuer who can suddenly make your gold and silver into confetti. Even Janet Yellen, Chair of the Board of Governors of the Federal Reserve, said that...

Stealing Growth GolverCard.com If you look at what is happening economically nowadays, you realize that many central banks around the world have adopted a close to zero, zero and even a negative interest rate policy to obtain a devalued currency in order to “stimulate” their economy, because when you have a devalued currency your exports get inexpensive, allowing more currency to flow into the country creating “growth”. However, these policies don’t create real growth, they just steal it; such growth is created only temporarily from trading partners until the trading partners steal it back with their own currency devaluations.

Inflation Equation GolverCard.com And most importantly, such policies constitutes massive theft from currency savers and forces retirees into inappropriate risk investments such as the stock market. When applying a normalized interest rate of about 2% to the entire savings pool in the U.S. banking system for example, compared to the actual rate of zero, reveals a $400 billion per year wealth transfer from savers to the banks. This has continued for five years, so the cumulative subsidy to the banking system at the expense of everyday Americans is now over $2 trillion. But that is just one part of the equation, because people tend to ignore inflation when deciding if they are better off.

Example Inflation GolverCard.com Here is an Example: Assume you are a software engineer working for a high-tech company making $100,000 per year. You get a 2% raise, so now you are making $102,000 per year. Most people would say they are better off after the raise. But if inflation is 3%, the $102,000 salary is worth only $98,940 in purchasing power relative to where you started. You got a $2,000 raise in nominal terms but you suffered a $1,060 pay cut in real terms.

The Wrap Up GolverCard.com Several experiments by behaviorists show that people think a 2% cut in wages with no change in the price level is “unfair.” Meanwhile, they think a 2% raise with 4% inflation is “fair.” In fact the two outcomes are economically identical in terms of purchasing power. However, the reality that people prefer a raise over a pay cut while ignoring inflation is the essence of not understanding how the economic system really works. Read full post: system

GolverCard Explainer Video GolverCard is an innovative savings and payment system backed by gold & silver. We offer the benefits of the precious metals industry through gold and silver, with all the advantages of the banking industry. Watch Our Explainer Video!