| In simple terms, anything that is finite will become worth more as the Fed floods the system with dollars… making the currency worth less. After all, the basic rule of economics is that the more of a given asset there is, the less each individual unit is worth. Think of sand. According to NPR, there are roughly five quadrillion grains of sand in the world. Because it’s so common, you can buy 50lbs of sand for less than $10. What you’re really paying for is the cost of labor and shipping that the sand company spends to bag the stuff and ship it to you. In reality, sand is free… provided you can get to a beach. By way of contrast, there are only 2.5 billion ounces of gold above ground today. That sounds like a HUGE amount of gold, but compared to sand? It’s infinitesimal. Not only is gold much rarer, but it’s much harder to get ahold of (you have to mine for it). As a result, a pound of gold is worth over $21,000. The same thing happens with money. The more money you print, the less each unit is worth. That’s why the purchasing power of the US dollar has been falling like a stone ever since the US broke away from the Gold Standard in 1971. And it’s why the US dollar has been collapsing ever since the Fed and Federal Government began spending TRILLIONS of dollars to fight the COVID-19 pandemic. This is ALSO why gold, silver, and other real assets are exploding higher. And this is not simply about the dollar collapsing either. Remember, EVERY major central bank is printing hundreds of billions, if not trillions, of new units of their respective currencies. This is why gold is rallying hard whether it’s priced in U.S. dollars, Euros, Swiss Francs, or Yen. Gold is a great investment during higher inflation. So is silver. If you don’t have some exposure to either, consider getting some. And if you’re really looking for higher returns, I’ll detail a unique investment for you tomorrow. Until then… Best Regards,  Graham Summers Editor, Money & Crisis |
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