‘Why not instead buy stuff – any stuff – that will equal inflation or better?’

Linkedin/Ray Dalio

Repost from 3-14-2021

“However, because you are trying to store buying power you have to take into consideration inflation. In the US you have to wait over 500 years, and you will never get your buying power back in Europe or Japan. In fact, if you buy bonds in these countries now you will be guaranteed to have a lot less buying power in the future. Rather than get paid less than inflation why not instead buy stuff—any stuff—that will equal inflation or better? We see a lot of investments that we expect to do significantly better than inflation.”

USAGOLD note 1: Of course, the ultimate “stuff” – the ultimate stores of value – are gold and silver. But, Dalio cautions, policymakers “won’t like these capital movements out of debt assets and into other storeholds of wealth assets and other tax domains so they could very well impose prohibitions against capital movements to other assets (e.g., gold, Bitcoin, etc.) and other locations.” While we can only speculate what those “prohibitions” might look like, it is for these concerns that so many of our clients have diversified their holdings with historical bullion items, a trend that has only accelerated in 2021.

USAGOLD note 2: With modern bullion products in short supply and premiums to spot gold on one-ounce items like American Eagles approaching double digits, the cost differential to move into historical bullion coinage has never been narrower. Also, these products offer owners the opportunity to diversify into smaller, more negotiable sizes. We recently secured a significant position in arguably the most well-recognized and popular historic bullion item – British Sovereign Kings (pictured left) – which are quickly eclipsing modern bullion options in popularity under current market conditions. We invite you to call our Order Desk for details and product availability – I-800-869-5115 or orderdesk@usagold.com.

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