Insurance or Investment

An ‘investment’ generally means, if it is a good investment, you will have increased the number of things you ‘invested’ in, and here in the U.S., it generally means more dollars, or investments which can be turned into dollars.  You invest a thousand dollars at 5% interest, and in a year, you will have $1,050, or fifty more dollars.

Gold and silver can possibly be an ‘investment;’ sort of, except in a year or so, you will still have the same number of ounces of gold and silver.  The gold and silver will just sit there, and provide no interest.  I say that gold and silver are insurance, which is easily proven by looking at the last two weeks, with gold gone up about a hundred dollars, and silver at about the same percentage.  With a conventional insurance policy, your premiums remain the same, with the dollar pay-out also fixed.  With a gold and silver insurance ‘policy,’ you can get a ‘policy’ anytime, and of course the pay-out will be linked to consumer prices and the decline of the dollar.  There is no time of the policy.  It goes on as long as you have the gold and silver.  Inflation makes everything ‘go up’ in dollar prices, and that includes gold and silver.  Gold and silver no premium ‘insurance,’ have no fixed payout when you buy or sell them.  Gold and silver no premium ‘insurance’ policy prices are closely linked to consumer prices, and dollar declines.  Throughout history, consumer prices have always gone up as the paper money has always gone to zero.

A man who invests a thousand dollars at 5%, a year from now, will have the $1,050.  A person who buys fire insurance on his house, or collision and liability insurance on his car, will receive no interest.  His insurance will protect him if his house catches fire, or he has an auto accident.  He pays a premium for the protection he receives in case of a fire or accident.

Isn’t it a good idea to have insurance?  Shouldn’t everyone have a homeowner’s policy, health insurance, and an auto insurance policy?  You may never need it, and I hope you don’t, but the premiums you pay for insurance, is peanuts, if you have a sudden need for it.  A gold and silver insurance cost, will be ‘peanuts’ when paper money collapses. I have been paying homeowners and auto policies, for as long as have owned a vehicle or home, and have never made a claim on either.  I’m really healthy, rarely make a claim on my health insurance, but It gives me pleasure to know I am ‘insured.’  I gladly pay the small premiums for the protection of ‘insurance.’

When you have conventional life insurance, you know exactly what you will have at the termination of the policy, no matter what happens to the economy. Gold and silver insurance pay-outs will be directly linked to the value of the currency.  The pay-out may be in the millions of dollars.  If you flip houses or do stocks, you are liable to lose it all, as they did in 2008, or do well as now, I think, as I have never done either.  All Investments are a gamble. Anything can happen with investments. You can get rich or go broke with ‘investments.’ Gold and silver just sit there, with no tax consequences, or insurance premiums. They are no gamble. They just sit in your safe. They don’t multiply, or get larger or smaller.  A one-ounce gold or silver coin will just sit there…period.  How boring!

Since Biden took office and Democrats carried the House, we have from five to eight percent inflation, and it may not stop there. We’ve been had by the left. It may not be time now, but eventually our gold and silver insurance, will be extremely useful, since the end of all paper monies is the same, and that happens to be zero.  The U.S. dollar has already lost 95% of its purchasing power over the past several decades, and gold has gone from $20.67 per ounce to close to $1,900 in the last hundred years. Throughout history, not a single paper currency has survived. They have all gone to zero, and those who saved in them, the same way.

I am self-insured and have no investments. I pay no premiums on my gold and silver insurance.  My no premium gold and silver insurance is life insurance also. If I die, my wife can sell some if she needs it, and if she dies, I can do the same, with no inheritance taxes. I have never had a savings account, and have never owned a share of stock.  I am sure that if I had invested in stocks and been lucky, I might have done well, but I didn’t.  I have watched my gold go from $250, to close to $1900 in the forty-four years I have been dealing with it. It just sits there, and there are no insurance premiums to pay. Boring. Silver has done the same.  It just sits there.  As prices of everything have gone ‘up,’ as the value of the dollar has slid, my gold and silver insurance, just sits there, with no premiums to pay, and dollar pay-out always increasing. They will always buy the same, no matter what happens to consumer prices.  A good men’s suit for an ounce of gold, and a gallon of gas for a couple of silver dimes. I may never have to make a claim on my insurance, (sell), but if I don’t, I can leave it to my kids with no inheritance taxes, and they can also just sit on it, or do whatever they please.  They may sell it and waste what I left them, but I did the wise thing, whether they do it or not. I just have boring insurance, pay no premiums, and eventually, without any doubts, will do the reverse of any paper money anywhere. I am getting sleepy with all the risk I am taking.  ZZZZZZZ. 

Don Stott – don@coloradogold.com