Sell The Dollar - Think About Metals!
Rising prices since the 80’s till today – The reason: The dollar depreciates

Do you still remember the prices at the beginning of the 80’s? In comparison to todays prices, they were way more than low. Consider the average price for a house in the United States, which was at about 74.000 USD. Today you’ll hardly get an empty building lot on the outskirts, not to speak of a whole house.

In those times a stamp didn’t cost more than 16 cent in the US.
And what about a mid-range car? Two and a half decades ago you just had to pay 6.900 USD for it. The Dollar is subject to a strong loss of purchasing power, just like all the other currencies are. How come that these price comparisons are so important?
The mass media just refers to nominal prices. The nub of the matter is, however, that the dollar is worth far less today than 25 or 30 years ago. As a matter of fact, the dollar still is the yardstick for the formation of prices in all asset categories. However, this yardstick has changed immensely during the last decades.
The inflation erodes our assets mercilessly. Related to a period of time of 12 months this development is not particularly to be seen. But if you keep this process under review for a longer period of time, one becomes aware of the intensity of the loss of purchasing power.
If we consider the amount of money we had to spend for postal charges, car, house and other goods in the years 1975 to 1980 one notices how much paper money loses value in the course of time. 

The invisible inflation

Todays usual inflation benchmarks mainly contain the producer prices and especially the prices for consumer goods. However, price developments in the financial sector, respectively asset prices, get fade out systematically. An exorbitant credit- induced production of money often doesn’t result in increasing prices for consumer goods, but shows up in price pushes in certain property assets. Exclusively considering the prices for consumer goods – which is, what the common run of mankind does – an invisible inflation is likely to come up. This so- called “asset- inflation” is currently to be found mainly in the international stock markets, bond markets and real estate markets. Because of the fact that these asset categories are inflated artificially, it could even end in a collapse of these sectors. 

It’s always necessary to pay attention to the inflation in your future investment decision

If you hold an investment of 1000 USD for 5, 10, 20 and 30 years (calculating with an inflation rate of 3 percent) 858.7 USD (after 5 years) , 737.4 USD (after 10 years) , 543.8 USD (after 20 years) and 401 USD (after 30 years) are left over.

Calculating with a possible inflation rate of 5% the final amounts sink down to 773.8 USD / 598.7 USD / 358.5 USD and 214.6 USD. That means that you have almost lost 80 percent of your original fortune after 30 years. But as a matter of fact one must admit that the loss of purchasing power might be even higher in the coming years. The exploding prices for energy and permanent increasing prices for victuals, electricity and gas make an inflation rate of more than 5 percent easily conceivable.
You should think of this when your insurance company writes to inform you that your pension is expected to amount to 1.500 USD in 25 years. So what do you do automatically?
One imagines how much one could buy of this amount of money today.
However, it is necessary to take 25 years of inflation into consideration to calculate your monthly pension. Assuming that the annual inflation rate amounts to 5 percent – which is still calculated quite conservative – the depreciation amounts to rounded 72 percent. This means that 1.500 USD would just have a purchasing power of  416 USD in 25 years.

Crossed silver ounces

Do you know now why the richest people on the planet regroup their assets in gold, And, especially in silver?

Simply to avoid a rapid loss of the their fortune and in particular to strengthen their position as the wealthiest people on earth!

Silver-Info.com provides the knowledge you need to understand why silver might be a vital component of your wealth formation.

P.S. Take some time and watch the video below. The process how banks are artificially creating money out of nothing is well described and might give you an impression of how we got to the point where we currently are, in the middle of an ailing financial system with banks you can hardly rely on...

Did you like the video? Click here to watch the other four parts of "Money as debt"

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