PostHeaderIcon Real Money

In Troy’s last post, he speaks of debt money and real money. I remember well just a few years ago, when I realized the value of my retirement savings were being eroded by inflation, faster than they were growing from meager returns. I decided to cash out and put them into gold at ~$600 an oz. My objective was not as an investment for a profit; but just to retain the value of what I already had. I also remember patting myself on the back for my foresight, when it slowly topped $700 per oz. Many thought me recklessly foolish… ◄Dave►

2 Responses to “Real Money”

  • Troy says:

    Thankfully, I heeded Dave’s advice and put about half of my investment capital in gold. Most of mine was bought in the $900 range but I’m still not sorry I did it.

    Still, when the poop hits the propeller, I’m not quite sure what to do with the gold. The very fact that I have it might make me a target – or it might save me from ruin. Or, I may pass from the scene and leave my children to work it out.

    Thanks Dave.

    Troy

    • ◄Dave► says:

      Duly noting your heritage, it pleases me no end to have been an influence in creating such a conundrum for your heirs. 🙂

      Since modern governments have abandoned the gold standard, it is now just another commodity. Thus, I think it unlikely that they will attempt to repeat FDR’s rip-off. They might as well confiscate your coffee stash, for all the utility it would have for them. Besides, the mindset of the gold hoarders is very different now. Fewer folks trust the government to be doing the right thing, for the ‘good of the nation.’ They would have to pry their guns out of their cold dead hands, before they could start searching for their gold. The wise man will have it dispersed off his property anyway, so they will still be unlikely to find it.

      I reckon the real problem will be making change. That is why I included a bag of junk silver in my ‘portfolio.’ Were it not for the mobile lifestyle, I would have more silver in the mix. Interestingly, as high as fuel costs appear to be, a gallon of diesel is still well below the melt value of an old silver quarter. In other words, motor fuel is cheaper now than it was when I started driving, about fifty years ago.

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