Why You Should Save in Hard Money

Daily Reckoning ^ | 22 Sep 25 | Adam sharp

[delta7]

I always laugh when someone says there is no inflation.
——————-
Powell states their target is 2 percent inflation, why not 0 ( zero) percent? It is an admission they can not control it.

Shadow stats show we are running 8 percent, measured the old way.( Prior Obama days). Inflation can not be controlled as long as our paper dollars continue to be printed.

[irishjuggler]

(1500000/29000)^(1/(2025-1961))=1.06359

So roughly a 6.36% annualized return (compounded). Property taxes and other expenses of ownership would reduce the real-world return while the value of the occupancy or rental-value-equivalent would enhance it.

[Ruy Dias de Bivar]

***In 1964, U.S. minimum wage was $1.25 an hour. ***

Dad got a wild hair and decided to move us to a part of the USA where the only job he or I could find in 1964 was 70 cents an hour(agriculture wages). He had been making over $4 an hour where he had worked in 1962. I was making $1 in 1970 No overtime pay, till I got a job in Tulsa OK making $1.50 an hour with a guarantee of 8 hours OT a week. Last job was in 2008, making $25 an hour with lots of OT. I did well.

[Mean Daddy]

Personally, I would never look at bullion as an investment, rather a form of barter. Lots of states have Goldbacks which are varying amounts in gold in printed form and by weight. I’ve read a lot of people horde alcohol as a potential barter item.

[Mean Daddy]

That’s why lead is the most valuable metal.

[The Duke]

"They are not as much investments as insurance against the total collapse of a government and its currency."

Worth repeating. Even if the "price" of gold and silver increase dramatically, their *value* may not increase too much.

A young person would be well advised to invest in their own practical knowledge and skills. Learn diesel engine repair, HVAC and/or electrical.

[hanamizu]

When I was a nipper a silver dime (now worth $3.33) could buy two Snickers bars. which is about what it would buy today. In 1900 a $10 gold piece could buy a very nice suit.

You can look at it two ways, the price of silver and gold have gone up or the value of the dollar has gone down.

[CalTexan]

You forgot living by the ocean for 60+ years inside your investment with the best weather in the world.

You can’t live in a stock market...

Thanks to Proposition 13 he paid low taxes too!

[irishjuggler]

With all due respect, I didn’t forget that. I specifically mentioned that the value of the occupancy or rental-value-equivalent would have to be factored in if you truly want to drill down on actual return.

Obviously, in most case, there’s also some intangible satisfaction in owning your own home that rental-value equivalent doesn’t precisely capture.

I’m in San Francisco where home-price appreciation is similar to the Southern Cal example cited. I’m a long-term owner residential real estate, so it’s not like I’m personally biased against home ownership and have some axe to grind. Everyone and his brother has stories about how parents/grandparents etc bought houses with a couple year’s salary and a song 50, 60 years ago and now the place is worth $1.5 million, $2 million, whatever. But believe me I’ve run the numbers every which way, and it’s very hard to make the case that home ownership is a more lucrative investment than the S&P 500 for pretty much any period that you might chose.