Lee DunaChina is hoarding the world's gold
unalivejoySo? We don’t use it for money anymore.
But when money fails (hyperinflation, sanctions, digital collapse, bank failures, violent revolution, etc.), countries who already have gold reserves will be the only ones with anything of value.
Beyond that, just by virtue of the fear of any of those events or general international turmoil rising, the value of gold rises, too, as one of very few stores of wealth that can survive any such event. Investing in gold is a great low-risk move for guaranteed returns on huge reserves.
I talked to someone in finance, and the first thing they said is that nothing has guaranteed returns.
BOMBSFlowVoid: Hi, I’m FlowVoid.
Person in finance: Nothing has guaranteed returns.
FlowVoid: Oh…uh, ok.
Person in finance: I’m in finance.
Close!
FlowVoid: Hi, I’m FlowVoid, your 1:30 pm appointment. I’m here for some guaranteed returns, here’s $3.50, now set me up.
Finance person: Nothing has guaranteed returns.
You can get a guaranteed return in many ways.
- US Treasury bonds: if the US government fails you’ll have bigger problems than money. You don’t need to worry about that scenario. You’ll win the lottery first.
- Pay off a loan: by paying off your principal early you can guarantee that you pay less interest in the future.
- Buy something that saves you money: if you like cooking, an herb garden will save you a lot of money. If you like sweets, baking equipment will do the same.
The first is not guaranteed, the others are savings not returns.
Savings are better than returns because they are legally tax free. A penny saved is worth more than a penny earned.
Yes, savings are usually better if for some reason you are forced to choose only one. But they are generally used together. A penny saved is worth even more if it is used to generate a return.