Individuals and families around the world have been investing in hard assets of all types including precious metals and important rarities for centuries as a way to preserve and grow their wealth. Such hard assets add stability and growth to one’s portfolio as these items are irreplaceable artifacts that will always be highly valued due to their historical significance, scarcity, and popularity among the affluent.
The more unstable the economic times, the more wealth should be kept outside of the financial system. As a currency devalues and/or totally collapses due to hyperinflation (caused by massive currency debasing ) it is critical to proactively employ asset protection. In other words, to hold onto your hard earned net worth (acquired over a lifetime) you must find relatively safe havens for your assets (during an economic storm) so you aren’t wiped out financially. Even when economies are experience paper asset growth EVERY single individual must have some hard assets as part of an overall diversified portfolio.
Today we are in uncertain economic times (heading towards extreme). The United States and every major country in the world use a fiat monetary system. A fiat currency is backed by nothing but a population’s faith in the reigning government. Over time the United States has devalued the dollar dramatically. Public works, social programs, excessive wars and a culture that has an eroding work ethic has put this country on an unsustainable economic trajectory.
The future of United States Currency Devaluation is unwritten, but facts and data indicate that hyperinflation is lurking around the corner. Consider the following: It is not that public works and social programs don’t have their place. They do. But there is currently a huge chasm between providing a safety net for people in real need, and turning this (or any other country) into another failed welfare state. Like bad cooks politicians can never seem to figure out the correct mixture of using money wisely, coupled with fair and just regulation to: • Help people who work hard to have the opportunity to prosper if they do a good job, and fail if they don’t—but still have an opportunity to pick themselves up and try again. • Provide adequate food, shelter, housing, and medical assistance for the very young, the very old, the very sick and the very crippled. • Not leak huge sums of monies to the growing number of freeloaders. • Not leak huge sums of moneys to political corruption. This is the primary problem and danger of a fiat money system. The US government has the power to print unlimited monies and provide a sense of prosperity for a while and to increase its centralized power base. Excessive currency creation (especially of this magnitude) almost always (if not always) leads to waste, corruption, and debasement of the currency. Over time this debasement accelerates (as it has done here). The greater the debasement, the more dire the consequences when the piper is finally paid. In other words, inflation and eventual hyperinflation are the hangover effects of the poorly run multi-decade party.