What does a re-valuation (in all reality a de-valuation) look like on a global scale?
2/14/22 - 2 minute read
Here's a question that one of my readers, Jennifer, asked me on Telegram:
Hey silence, what are your thoughts on a revalue? And if there is a reevaluation, could it end up being a loss for those that have been stacking? Meaning, if the revalue goes back to 1950/1960.
My response:
I can't necessarily see a revaluation in dollars going back to old prices; instead, what I see is the price of everything continuing to increase until one of two things occurs: Global Central Bankers around the world simultaneously conduct a Venezuelan type operation, by chopping off zeros (extremely bullish for Gold and Silver), or the price of Gold and Silver will eventually track higher than the inflation rate by a long shot as people wake up to the fact that cryptos nor most other asset classes will not protect their buying power in the long run. Patriots maintain their buying power with physical Gold and Silver, right when a lot of people will be forced to sell their assets for pennies on the dollar (could be individuals or banks, both in all reality, also extremely bullish for Gold and Silver). I like to use different ratios to analyze the price in Gold and Silver relative to past costs of other things, vs what the same precious metals could buy me now. The Gold to Silver ratio went down to 16 briefly in 1980, in which 1,000 oz of Silver would have bought you an average three bedroom home. So ideally I'm holding on to my Gold to preserve my long-term wealth, as well as a hedge to pay property taxes on real estate, and my Silver is my stack in which I eventually want to convert it to a hard asset like real estate or other rare collectibles (the three prong method to 300+ year dynastic wealth includes Gold, Real Estate and rare collectibles). If you can afford it, anyone who holds real estate can purchase Gold bullion to protect their future real estate taxes, as history tells us that property tax increases and the price of Gold increasing is highly correlated! So for every $2,000 per annum you pay in real estate taxes, buy 1 oz of Gold per year of protection. So if your property taxes are $6,000 per year and you want to protect yourself for the next 20 years, buy 60 oz of Gold and earmark it towards paying your property taxes.
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