Do you understand how the value of your money decreases over time?
If you had a safe that you couldn’t open for 10 years what would you prefer to fill it with,
$1400 in cash or
1 ounce of pure gold?
Do you have more confidence that after 10 years the cash will have maintained its purchasing power or the gold?
Do you have more confidence that the cash will have maintained its purchasing power or the gold?
In order to make the answer to this question easier to understand just consider the following information.
Gold was used as a form of exchange back in Alexander’s time and is still being used today. What’s more, gold has maintained its purchasing power, over this time, whereas no other form of money has managed to do that.
In ancient times an ounce of gold would buy you a suit of armour or a gentleman’s suit and it will certainly still do that today.
At the same time, 100 years ago that one ounce of gold would have bought you 140 loaves of bread, and would have cost you $14. Today that amount of $14 may buy you 4 or 5 loaves of bread, however, that same ounce of gold will buy you 350 loaves of bread.
This is testament to the purchasing power of gold remaining intact over time.
In 1913 the US Federal Reserve, which is a central bank, was formed and since then the US dollar has lost 95% of its purchasing power. This is why you notice that when you leave the grocery store you leave with less, for the same amount you have always spent.
In 1944, after the 2nd world war ended, a new financial system was designed to stabilise the world and the US dollar was chosen as the world’s reserve currency. At the time the US dollar was tied to the price of gold which was then $35 an ounce.
However, in 1971, the US government detached their dollar from gold and after that the US dollar was no longer backed by anything. This is known as a Fiat currency and which is what has allowed the US government to print money endlessly today and thus devalue any paper money that you hold in your hand, so that it is virtually worthless.
All countries of the world have their own country currencies attached to the US dollar so as the US dollar loses its purchasing power so do all other currencies over the world.
In contrast, Gold still holds reign over many financial systems as the ultimate source of payment today, the same as it did 5000 years ago.
Gold is in demand today as much as it was in Alexander’s time and is used in many products as well as being stored in pure gold form.
In an effort to retain the value of their worth, Central banks today are buying gold for the first time in years. (Bloomberg – Central bank gold holdings expand at the Fastest pace since 1964” published March 18 2010.)
Many analysts believe that China will increase its official gold reserves to equal those of the US by more than 700% from 1054 tonnes to 8133 Tonnes. We can already see this happening. What do you think the Chinese government knows?
At the same time many legendary investors are also buying gold.
We have already reached “Peak Gold” and global gold production is falling. This means that over time gold is almost guaranteed to increase in value due to its scarcity value.
Some of the characteristics that make gold so valuable are:
Gold is durable. It doesn’t disintegrate in your pocket or devalue in the bank.
Gold is divisible. It can be split without destroying the value of the whole, unlike other forms of tangible investments, like diamonds or artwork.
It is consistent. One piece of gold, like for like, has the same value as another piece of gold, unlike real estate whereas every piece is different and the price varies and is totally dependent on the purchasers taste.
Gold is convenient. Gold is liquid and can be easily sold 24 hours a day. In uncertain financial times this is critical.
Gold is portable. It comes in weights that are easy to handle, unlike other metals, like lead that would be far too heavy to be portable.
Gold cannot be counterfeited and can be measured accurately with a scale.
Gold has no use by date, is non-perishable is recyclable and is re-useable and it is used worldwide as it has no particular nationality.
Gold cannot be printed so retains real value and doesn’t become deflated in value by overproduction.
Paper money has value only in so much as the extent to which it is limited in supply. Today the US government (and other governments over the world) is printing money on a regular basis which only devalues it’s worth.
The money you hold in your bank savings account is actually only virtual money until you get it in your hands. Its relative value when you take it out may actually be less than its value when you deposit it, even with interest added.
Gold is inflation proof. Inflation affects the value of your money and when governments print money the value and buying power of your paper money decreases.
So what would you prefer to have in your safe?
Gold is real money. Doesn’t it make sense to save your wealth in physical gold and be able to hold it in your own hands?
Are you confident your paper money is portable, durable, divisible and fungible and has value in and of itself?
If, once you have watched the video and asked yourself the question “what would you prefer to have in your safe?” your answer is gold, join the thousands of others that are taking control of their own financial lives, one gram at a time, by partnering with the company that is bringing gold to the masses.
Save your own gold with Karatbars international in amounts that you can afford on a weekly basis.
Join the thousands of others that are taking control of their own financial lives, one gram at a time, by partnering with the company that is bringing gold to the masses.
Whether your savings consist of a few hundred, a few thousand or even a few million, Karatbars can empower you to protect and preserve the purchasing power of your wealth.
Remember, every journey begins with the first step.
If you haven’t already joined Karatbars and are recognising what a powerful opportunity this is then just opt in at https://www.karatbars.com/signup.php?s=freedomwithcash
If you would like more information about Karatbars sign up here
John and Linda
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