Sunday, August 19, 2012
Prices in general are rising: gasoline; food; college expenses; car prices; insurance premiums; household items. Regardless of income or circumstances, people have to keep spending money on the basics.
According to official numbers, we’re in a low-inflation environment. What happens if price inflation really takes off—or worse, spirals out of control?
In that event, no one can maintain their standard of living without an effective plan. Even with raises, cost of living adjustments and savings, the value of the dollars things are priced in will be rapidly losing purchasing power. It will take more and more currency units to buy the same amount of gas and groceries and tuition.
When the consequences of runaway debt, out-of-control deficit spending and money-printing schemes come home to roost, high inflation will result. We need a way to diffuse the impact this will have on our purchasing power. We need a strategy to protect our standard of living.
Consider: Drought this year has adversely affected the corn crop, and the price is surging. What if you used gold to buy corn? While the gold price constantly fluctuates, you would have experienced, on average, no inflation over the last 30 years. If you used gold to purchase corn today, it would actually be on the cheap side.
When you extrapolate this to other food items—and virtually everything else you buy—it’s liberating. Think about it: gold continues its safe-haven role as a reliable hedge against rising inflation. Those who save in gold will experience, on average, no cost increases in the things they buy and the services they use. Their standard of living won’t be affected.
Clark discusses how much gold (and/or silver) an individual will need to make it through the upcoming inflation storm unscathed, taking into account gold’s history, taxes, monthly expenses and unexpected expenses—the point being that you’ll probably need more ounces than you think.
If you don’t save now in gold and silver, you’re going to spend a lot more later. Gold and silver protect your purchasing power, your standard of living. It’s like having your own personal financial bomb shelter: the dollar will be blowing up all around you, but your finances are protected.
Put a plan in motion to save enough to meet your family’s needs. Whatever plan you adopt, make sure you have a meaningful amount of bullion to withstand the firestorm that’s almost certain to occur.
To read Jeff Clark article: Your Financial Bomb Shelter
Posted by Unknown at 3:14 AM