Not Investing Can Increase Your Purchasing Power

What this means is that, during these turbulent financial and monetary times, deciding to defer investing part or all of your money and instead preferring to opt for saving it for the time being by simply exchanging it for gold or silver bullion (which are monetary metals or another form of money yet to be fully recognised again as such), can be quite rewarding. This is essentially, in our opinion, because our current global monetary system is failing and our fiat currencies are losing their purchasing power.

It is no longer necessary to invest to increase one’s purchasing power. In fact, the increase in the price of gold and silver bullion over the past twelve calendar years has been such that most investment strategies have fallen short of generating as good a return as that generated by simply buying and holding on to one’s bullion. The two monetary metals are priced in US dollars, but investors in any country can purchase bullion by converting their currency.

The price in USD of gold has increased each and every calendar year since the beginning of 2001, on average by 16.3% per annum or a total of 515% over twelve years. Silver, on the other hand, has increased in price during the same period by 582% or 17.4% per annum. How do these gross (before any tax and fees) rates of return compare with your investments? If your base currency is not the USD, then the following document will be of particular interest to you. It shows what those gross rates of return were across ten major currencies and for each of the past twelve calendar years, as well as cumulatively.