the Goldback vs Inflation
An instance portraying one of the many times when Gold has outperformed the dollar.
If there’s one word to describe the American economy during 2022, it would be INFLATION. This year we have felt the impacts of that inflation from the gas pump to the supermarket. In fact, from June 2021 to June 2022, Inflation rose by a whopping 9.1%. This caused the highest rate of inflation in the past 40 years. Unfortunately, the dollar's value goes down as prices continue to go up. That means that the typical savings and investment accounts have dramatically shrunk in the same time frame.
Inflation is usually created by two factors: 1) The Federal Reserve sets the interest rate too low, or 2) the money supply is too high. This year, we have experienced both of those factors. Covid-19 Relief packages vastly increased the money supply by printing trillions of dollars. Also, the Federal Reserve has kept the interest rate way below the inflation rate at a mere 2.33%. According to Stanford Economist John Taylor, if the Fed changes the interest rate, it is possible to mitigate inflation and avoid a significant recession in the near future.
However, there is another way without relying on the Fed. You can avoid all the instability and value loss of inflation. Buy Goldbacks! The Goldback provides a store of value that increases independent of dollar trends. Since the Goldback is actual Gold, it goes up as the price of the metal continues to rise. In the last twenty years, the cost of Gold has increased over four times! That equates to an incredible investment opportunity that keeps your money safe! The best part, is you don’t have to count on the Fed trying to balance interest rates with inflation rates; you can count your Goldbacks with the satisfaction of making thrifty decisions
Let’s illustrate this with a story. In 1950, there was an elderly woman who put $5000 (the equivalent of $60,000 today) into a shoebox to keep for her posterity. Many years passed, and the woman forgot about the box with the money. She passed away, and the house remained in her family for generations. Finally, in 2020, her great-grandchildren were exploring the attic. While sorting through their great-grandmother’s possessions, they found the old shoe box. Therein was the $5000. Unfortunately, inflation had severely caused that value to diminish, and what could have been a year’s salary was barely enough to get by for a month. Had this woman invested in Gold, the price of that 5000 would have increased by nearly 50x its value. Instead of 5000, those kids would have found $250,000.
Make the intelligent decision; start using money that will increase over time and provide wealth for your posterity! Get online and buy Goldbacks today!
Title photo courtesy of:
Goldback Inc.