2020 will forever be known as the year of spiralling debt. The corona virus has caused countries to act in what I believe to be reckles when it comes to "money" management and currency printing. Governments all over the planet have called on their respective central banks to push money at the people in a hope of maintaining some sort of functioning economy out the other side....
When businesses are being forced to close and jobs and becoming surplus to requirement, governments have tried rightly it wrongly to put cash in to the pockets of people to keep them spending. Ultimately the economic fall out from all of this still hasn't risen to the surface and my be hidden for some time. I'm preparing for a massive devaluation in currency, which is why I strongly recommend investig in SILVER and GOLD.
I'm not all doom and gloom.... While I can see currency devaluing over time, let's take the UK Sterling as a quick example, you only need to see it tank since the #brexit result of 2016 to see how things change. Taking a deeper dive in to its devaluation of 1966/67 by the Wilson Government and how since 1971 its has lost 93% of its purchasing power its pretty clear that you now need more to buy the equivalent amount of service/goods
The smallest coin in 1971 was the 1⁄2p, worth about 6.4p in 2015 prices.
As I mentioned, I'm not all doom and gloom, while currencies continues to devalue, my fear of a dramatic and instantaneous hyperinflation are on the back burners at the moment. No government is "too big to fail" (like the banks of 2008) but I can't see the US Dollar not being the world's reserve currency, the Euro going to zero or the pound being worthless anytime soon.
So why am I still so confident in silver and why keep buying it...?? I learnt very early on to STOP valuing my silver in fiat. 1oz of silver I bought 5 yrs ago is still an ounce of silver today. Silver never changes and will always be silver. What I think I'm trying to say without getting too philosophical is fist currency, irrelevant of which country your talk g about, will always change, but silver remains a constant. Possibly I'm not maki g the greatest of sence, but in my head I know what I'm talking g about.
Markets go up and markets go down but silver remains silver. Silver, for me, isn't a quick get-rich-quick scheme, it's a way of transferring generational wealth to my kids without the fear of it hyperinflation to zero value.
Think of it another way, precious metals, tend to be a good hedge against inflation. A set amount of silver 50yrs ago would buy a certain amoumt of goods to a similar value of silver. For an over exaggerated example:- 50yrs ago 1oz of silver = £1 = 10 juicy green apple. Bear with me, it will make sence shortly, I've not gone insane (I promise)! In 2020 1oz of silver = £15 = 10 juicy green apples
The apples haven't changed, the silver hasn't changed, you just need more fiat currency to buy things... Well this blog shot off in a random direction and wasn't what I wanted to cover tonight, but I'll leave it here and hopefully pick up and get back on track tomorrow with more random thoughts on silver, currency and the global economy.
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