Having a hoard of gold and silver pieces can give you peace of mind during inflationary times.
Do you really know what inflation is and what symptoms of inflation to look out for? The expansion and contraction of the money supply is really all that inflation or deflation is.
And the symptoms of inflation are the rising and falling prices.
During inflationary times everything gets more valuable except for our currency.
But why worry about inflation you say? After all, in August 2010 the US government statistics reported the year to year consumer price index to only be up 1.
1%.
We have never been worried about this small an amount before.
Hyperinflation to the average person on the street appears to be out of the question given these kinds of stats.
Let's look at what the governments are trying to conceal from us.
Certain facts are purposely left out in their methods of the CPI calculations.
The reality of a coming hyperinflation will become all too apparent.
Hyperinflation is absolutely on the way.
We have always known that what goes on in the real world is a little different than what the government statistics have been reporting.
The government actually has an incentive for reporting lower CRI values.
The lower figure helps when computing cost of living increases for Social Security for instance.
And some things like flat screen TV's may actually be coming down in price, but what about those things we buy every day, things such as food or energy? Those prices have risen sharply over the last year.
Here are some reported figures from CaseyResearch.
com.
These are year over year changes for October 2010.
- Wheat up 74% - Corn up 14% - Oats up 68% - Canola up 36% - Heating Oil up 29% - Gasoline up 25% - Natural Gas up 15% - Beef up 18% - Pork up 60% - Coffee up 27% - Sugar up 44% - Cotton up 66% - Copper up 37% - Gold up 31% - Silver up 36% - Yet the Aug CPI-U is only up 1.
1% On average basic food costs are up 48% over last year (measured in the commodity prices).
Fuel is up 23%, meats up 39% and that morning cup of coffee with sugar has risen 36%.
You may not be buying cloths or building materials every day but you saw those prices up also.
This is why food and energy are ignored by the government in their CPI calculations.
We are being scammed.
The value of gold and silver have moved up as well.
So you see it is not just supply and demand issues on a few things.
In general everything has seen prices rise.
Price rises way above what is reported in the CPI.
Most commodities are perishable or hard to store, so its not practical to use them as protection against inflation.
That's the main reason we have seen coin gold and silver pieces going up in value.
This trend is very much in motion.
It may be time for you to consider silver bars, silver rounds, or any gold and silver coins for that matter as the best alternative for your investments.
I hope I have got you seriously thinking about inflation and what I believe to be coming - hyperinflation.
The governments and central banks in the world cannot continue to create trillions of currency dollars with nothing to back them and expect inflation to remain manageable.
Gold and silver coin values will continue to rise.
Enjoy the journey.
There are times when cycles investing and precious metals investing can be a lot of fun.