Many things will store value (predictably) better than fiat currency - which was never very good about it in the first place. They include farmable land, fine art, certain businesses, guns and ammo and an education in the trades. A store of value is anything that doesn't decay or become obsolete as it ages. You can think of some on your own. The best ones are reasonable to store in sufficient quantity to preserve a person's wealth, which is why things like yarn, furniture, iron and helium don't cut it. - De
July 30, 2020
Official currencies are no longer a store of value says analysts
by David Lin
Kitco News
Investors should brace for the reality that as currencies race to the bottom, the only way to preserve wealth is to buy gold and silver, said analysts at Degussa in a report Thursday. (And that's not true. - De)
“For long-term oriented investors, gold and silver should be considered not only as liquid but also as risk-reducing and return-enhancing components for the asset portfolio; especially so in times of an unfolding big short in official currencies,” the report said.
Gold has rallied to all-time highs, and silver has climbed more than 100% since its March lows; both of these rallies signify that fiat currencies are losing their value, the report said.
“While you may well say that the prices of gold and silver are on the rise, it would actually be more meaningful to state that „the purchasing power of official currencies vis-à-vis gold and silver is on the decline,” the report said.
Degussa said that it is not only precious metals that are rallying; other assets like stocks, bonds, and real estate have also been appreciating. This is further evidence that currencies are just becoming cheaper relative to real assets.
“This means that you can buy fewer and fewer stocks, bonds, and houses with a given official currencies unit. From this perspective, you can rightfully conclude that a true and broad-based debasement is going on as far as the world’s major official currencies are concerned,” the report said.
This debasement of official currencies is not a recent phenomenon and has been going on for decades, Degussa noted.
However, currency debasement has recently picked up speed. (Currently, it seems that a 1% drop in the dollar precipitates a 3% rise in the price of gold. As confidence in the dollar drops, that ratio will probably change substantially in favor of gold. - De)
“The monetary debasement has gathered speed due to the consequences of the politically dictated lockdown crisis,” the report said. “Central banks around the world print up ever greater amounts of money to make up for lost incomes and profits, in particular in the United States of America and Europe.”
The trend has built a case for shorting reserve currencies, Degussa said.
The analysts at Degussa noted that a sharp rally in metals prices could be followed by a retracement, but the inevitability of inflation means that investors would still be wise to hold silver and gold in the long-term as an inflation hedge.
http://www.kitco.com/news/2020-07-30/Official-currencies-are-no-longer-a-store-of-value-says-analysts.html
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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