| The Great Ag |
06-11-2007 10:18 AM |
#1 reason to buy gold and silver
I posted this in another forum, but thought it might do well here, as well.
Here is a story from a South African newspaper relating to Zimbabwe's 3700% inflation. The full story is found here http://www.moneyweb.co.za/mw/view/mw...0060&sn=Detail
Excerpts from the story:
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You own several properties, have an impressive share portfolio and perhaps some collective investments. Maybe you’re a high income earner with a company pension perk.
Don’t think, just because the money comes easy now, that your financial security is guaranteed.
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Previously an attractive wildlife-watching option for international tourists, Zimbabwe has become best known for its hyperinflation. Officially, the rate is more than a staggering 3 700%, but the locals say the figure is much higher – and much closer, in fact, to around 9 000%. Prices go up everyday on supermarket shelves.
No-one’s salary can keep up with that, let alone a fixed income. Anyone who retired on an ordinary life company pension has been financially wiped out soon after stopping work.
Even former executives of banks and other corporates have found themselves reliant on others for survival.
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which “oldy” says he or she sold three houses and two three-bedroom flats and “invested the proceeds” to cater for retirement income. “It is hard to believe that this sum is now worth the equivalent of about US$13,” says the writer.
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Here is an interesting bit of information:
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however the broad tale is of people having to pay for one loaf of bread today with the same amount of cash used to buy a middle-market house on a large property ten years ago.
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The article goes on to state that investment in offshore hard currencies would be a good choice. No mention is made regarding PMs.
If the Zim dollar is worth $250,000 US dollars as the black market suggests, than 1oz of silver ($13.05/oz) is worth $3,262,500 million Zim dollars and Gold ($651.50/oz) is worth $162,875,000 million Zim dollars.
Since you own the metal and have it in your possession, liquidation is fairly simple, whereas having funds locked in offshore accounts may become inaccessible OR heavily taxed, and may not perform as well. I have paper investments but I do not trust them, as paper can go to zero quickly.
Buy you PMs and store them properly.
The Great Ag
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