Your Money is Losing
Value Every Day
Did you know?
Your money loses value every day. The wealth in your bank account is decreasing day after day. The hard-earned dollars you are depositing today will not carry the same purchasing power in the future. Ultimately, you will end up in a worse financial position. Many people are unaware this is happening and do not understand the force behind it, which is inflation. This culprit can reduce your wealth to dangerous levels.
What is Inflation?
Inflation is the process by which the price of goods and services increase over time. As a result, the purchasing power of your money decreases, and each dollar tomorrow buys fewer goods and services than today.
For example, a candy bar in the 1960’s used to cost 10 cents and now it costs $1. This is another way of saying that $1 used to buy ten bars and now it only buys one. This is inflation.
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Inflation can easily get out of control, especially in developing countries, and negatively impact economies when it remains unchecked. In 2018 in Venezuela, the inflation rate exceeded 1,000,000% a month. This ongoing and extreme inflation caused the economy to crumble and forced countless citizens to flee the country.
There is always a little inflation in developed economies, it historically hovers around 2%. However, inflation rates are at their highest points in decades. In fact, over the last 70 years, the USD has lost 90% of its value!
Let’s demonstrate the effects of inflation with a simple example
Suppose you have $1,000 in a savings account today, and it is continuously discounted by an annual inflation rate of 6% over a 10-year period. After ten years, you will still have that same $1,000 but it will only be able to buy you $560 worth of goods and services.
Many people do not like risk and use traditional banking products such as savings accounts because they think that their money will be safe. In fact, it often feels safe. The reality is that even if that account pays interest, it is not enough to offset the effects of inflation. Ultimately, the price you will pay for this perceived safety is the slow reduction of your wealth.
If ignored, inflation becomes a significant threat to your long-term financial future and freedom. If your savings and investments are not growing in line with inflation, you will end up in a worse financial position in the future. This concern leads many people to seek financial alternatives that reduce risk while offering flexibility and control over their money.
Can Protect Your Wealth
Precious metals such as silver and gold can protect you from the effects of inflation because they are valued differently. Paper currencies are issued, backed, and assigned a fluctuating value by governments. In contrast, the value of precious metals is tangible and permanent. They are real forms of money that have proven to maintain their worth over thousands of years.
Precious metals offer stable value that you can use to reduce the harmful effects of inflation and protect your wealth. Silver and gold have become attractive financial options for many people, and it is now easier than ever to use precious metals in your everyday life.
History of Precious Metals
Silver and gold have been held in high esteem and coveted by humans for thousands of years. They became ‘de facto’ money around 600BC when used for trade in the form of coins. These precious metals have historical track records as stable money. Silver and gold are practical, trusted units of account.
Ready to protect your weatlh?
Connect with a LODE Ambassador today to find out how you can use digital silver and gold assets to better secure your financial future.