Protect Your Quality of Life with the Real Value of Precious Metals
Precious Metals are the foundation for any asset portfolio. Gold and Silver have been the ultimate store of value since biblical times. The gold coins that wealthy Roman families buried under their homes during the collapse of the Roman Empire are still valuable today and arguably still worth about as much now as they were then. This stability also allows gold to be used as a standard of value for pricing and long-term contracts, such as loans or employment agreements. Precious Metals offered by Atlas Forge are the perfect financial instrument to hedge and insure against declining purchasing power of all currencies around the world.
As you may know, every major currency in the world is based on the fiat model (paper money). Fiat currency means a method of exchange that’s not backed by anything real like gold, silver or other assets. The fiat model, as has been proven throughout history, is doomed to fail and even if it wasn’t, it’s designed to hurt you.
Fiat currency needs inflation to survive. For you, that means any savings you keep in cash decline daily because as new money is printed, cash already in circulation loses purchasing power. Money is printed to pay for entitlements and other government spending and to artificially support the stock market.
The data for the USD chart below is taken from the Federal Reserve Board and the Bureau of Labor Statistics (BLS) which publishes the Consumer Price Index (CPI) data. The United States is not alone in pursuing inflationary monetary policy and steadily inflating its money supply.
1971 is a good starting point for three reasons.
- First, prior to 1971 exchange rates were fixed.
- Second, pre-1971 exchange rate data is difficult to obtain.
- Finally, prior to 1971 the dollar was fixed (convertible) to gold. On the other hand, after 1971, exchange rates were floating, data is available, and the dollar floated against gold.
In other words, the charts above start after the Bretton Woods period. Bretton Woods is the period that characterizes the international monetary regime between WWII and 1971.
After the Second World War, only the U.S. Dollar remained convertible to gold at a rate of US$35 per troy ounce. During that period all other currencies were linked to the dollar at a fixed exchange rate. In 1971, President Nixon closed the ‘gold window’ to prevent foreigners from exchanging their U.S. Dollars for gold. This was most likely done to prevent the complete loss of the U.S. gold reserves. In turn, other currencies began to float against the U.S. dollar. Since that historic moment, for nearly 38 years all currencies in the world have not been backed by any tangible asset. It is an unprecedented monetary experiment that extends to the entire world and involves every living person.
But inflation is only the start. Massive debt, stock market volatility and ultimately a currency collapse are the natural progression of every fiat currency that has ever existed.
As worldwide debt and currency wars escalate, the best financial insurance one can possess is precious metals.
For over 5000 years, gold and other precious metals have kept their purchasing power for its owners because they are real property. Remember, fiat currency is based on perception and a promise so as more is created its purchasing power declines over time. Gold and silver are real property with limited supply, so while price may change from day to day, your purchasing power is maintained.
This gold chart compared to the fiat currency charts above show that Gold is an excellent store of value, where fiat currency (paper money) is not. Excessive printing of money is the ultimate cause for the inability of fiat currency to function appropriately as a store of value.
We at Atlas Forge feel precious metals are an integral part of diversification. Whether that means physical possession or duty-free vaulting in jurisdictions outside your place of citizenship for ultimate diversification strategies.
The future of precious metals as a money and as a store of value has never been better or more important when looking at the global depression we are facing now. In the last 10 years, the world has accumulated more debt than all other civilizations combined since the beginning of time.
But the main reason to accumulate precious metals is to alleviate sovereign risk, meaning the risk that governments and central banks will confiscate wealth by devaluing currencies and running astonishing deficits.
As the war on cash intensifies, the monetary system you grew up with is in grave danger.
Tremendous Value vs. Savings in Cash
The overall conclusion is that gold and other precious metals are a significantly better store of value than paper currencies. Fiat currencies lose purchasing power daily. While the purchasing power of gold is up four times, the purchasing power of major currencies is down 5-10 times, except for the Swiss Franc and the Japanese Yen, whose depreciation is significantly less. In the last 100 years, the US dollar has lost more than 96% of its value and accelerating.
Over the same period of time that the supply of gold has only doubled, the supply of some currencies has increased 10, 20 or 30 times and more. This is why fiat currencies are losing their value. If governments keep printing more money, they will continue to depreciate. Governments can’t print gold and other precious metals, so they can’t depreciate its value.
In the world of money, precious metals are still one of the best stores of value and excellent insurance. They are the only insurance where if the worst doesn’t happen, you get your premiums back.
But here’s the good news…
We specifically designed Atlas Forge to reduce these risks.
The world is about to experience the greatest monetary improvement in history. So no matter what happens in the world, depressions, inflation, deflation, war; know that Atlas Forge has a solution for that and we will not only help you survive but thrive in what we believe will be the most challenging decade or two of our lives.