What is a “tangible?” The dictionary definition is: “Something that can be touched or felt by touch. Having actual form and substance.” A tangible then, is a pound of hamburger, a candle, tire, automobile, locomotive, light bulb, computer, book, map, item of clothing, or anything which can be touched, and has actual weight, substance, value, or maybe can be purchased. Just about anything your eyes can focus on, is probably a ’tangible.’
Since most, if not all tangibles have value, and can be bought, sold, stored, eaten, used, delivered, discarded, or anything that can be done with a physical item or tangible item, obviously ’tangibles’ come in all sizes, shapes, colors, weights, and have vastly different values. With me so far?
When I talk to customers, I always stress that gold and silver are tangibles, and like all tangibles, will go up in currency (dollar) price, as the currency (dollar) loses value. Why will the dollar lose value, causing tangible items to go up in dollar prices? Because there is no limit as to how many dollars can be created, and as Stott’s Law says, “The more of anything there is, the less they will be worth.” This includes dollars, euros, or any paper currency which is unbacked by a tangible thing such as gold or silver. When a currency is backed by “The full faith and credit of the United States Government,” or any other government, that phrase has become ludicrous, as no government today has any faith or credit.
Google or check retail prices for any year in the past, and it will be obvious that all tangibles, such as gasoline, butter, autos, lumber, or any other tangible, have all gone up in dollar prices over the years. The reason they have gone up, is because politicians garner votes by promising and giving huge amounts of benefits, cash, and subsidies from the public treasury. Far more handouts, than are collected in taxes, and they then print the dollars to pay the bills they have created through their ’generosity.’ Such ’generosity’ which is taken from the public treasury, requiring huge amounts of printing press, unbacked dollars, therefore taxes everyone through ’inflation. ’ The dictionary definition of inflation is: “An increase in the currency supply.”
Colorado Gold is in business to help people ’hedge’ themselves against inflation. A dictionary definition of a ’hedge,’ other than a green bush, is: “To try to avoid or lessen loss in connection with a bet, risk, etc. by making counterbalancing bets, investments, etc.” To ’hedge’ ones self against the devaluing of the dollar then, one must get out of dollars, which are losing value, and use the dollars to buy a ’hedge’ or ’tangible,’ which will go up in dollar prices, as the dollar goes down in value or purchasing power. Throughout history, no unbacked paper currency has ever survived. All have eventually gone to absolute zero in value and purchasing power. The dollar, in the last 75 years has lost about 95% of its value, and it continues to lose.
Tangibles of all sorts and types, over the last 75 years, have gone up at the same rate as the dollar has gone down or lost value. If you had bought a tangible 75 years ago, theoretically, it would cost 95% more to buy today than it did 75 years ago, and you would have ’hedged’ yourself against inflation, or to put it another way, you would have preserved your net worth.
Since all tangibles are of different sizes, weights, compositions, and durability, not all tangibles would have been a good investment or ’hedge’ against inflation. Butter melts, clothing goes out of style and can be eaten by moths, metal rusts, and most tangibles are not good hedges against inflation, due to their size, weight, desirability, ease of buying and selling, etc. Antiques are difficult to sell, and old, rare items are totally dependent on condition and age, not counting finding someone to buy them if a sale is desired.
Colorado Gold, sells the classic, historic, hedge against inflation. Classic, because it has been used to preserve wealth throughout the ages, in all cases of inflation, government collapse, war, and any other catastrophe one can imagine. The United States budget will never be balanced, since the current national debt approaches $16 trillion, with long term commitments close to $175 trillion. Obviously, the printing presses will continue to turn out dollars worth less and less as each year passes, with ever increasing velocity. It is very wise then, to get out of dollars, and into gold and silver, to preserve ones wealth.
The above is a brief speech, one might give to a service club or other meeting, if one desires to help ones fellow man preserve his or her wealth. History always repeats itself, and the current decline in America’s economic and moral conditions, are merely history repeating itself. I wish I had a less gloomy picture of current and future conditions, but I don’t.