Understanding real money and how it is relevant in our world – Part 1

Having lived in a world of paper money for our entire lives it is sometimes very difficult to know what real money is, especially if we haven’t been exposed to or taught about it. As a result many, many, people don’t even think about real #money as we have been led to believe what is in our bank accounts and wallets is “money”. All goods are priced in a currency so it is only natural to equate the value of everything in terms of a currency.

When we started our gold and silver journey we always viewed the value of them from the perspective of how much they were worth in a currency. This would cause many instances of fretting and discouragement when the price went down, which it usually did right after purchasing some.

We have since come to the realisation that viewing gold and silver's worth in terms of a currency is incorrect. An ounce of gold is worth an ounce of gold. That will never change.

Perspective.

Let’s paint a picture.

• There is a land mass (island or continent, your choice) which is surrounded by an ocean (Atlantic/Pacific/Indian again your choice). The oceans tide is constantly rising and falling. When the tide turns from low to high the beach slowly disappears because the tide is rising and moving onto the land mass.
  
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• We all live on a vessel (fishing boat/yacht/ocean liner/oil tanker your choice) on the ocean. The ocean is representative of the currencies of the world which are free floating against each other. Our vessel is filled with our accumulated US dollars, UK sterling, Japanese yen, Russian rubles etc. The ocean has swells which our vessel will rise and fall on. Our US dollar vessel rises on a swell while someone else’s UK sterling vessel is at the bottom of the same swell. One currency rises while another one falls against it.

Look out from your vessel towards the land mass which is representative of gold and silver. As your US dollar vessel rides up the swell, the land mass looks like it is dropping or even disappearing.

Similarly, from the UK sterling vessel the land mass looks like it is rising as the vessel drops down a swell. When using our vessel as our perspective it looks like the land mass (gold and silver) is rising and falling. In reality the land mass isn’t moving, gold and silver aren’t moving but our vessel and currencies are.

When we stand on a cliff overlooking the ocean, we aren't moving anymore but the ocean still is. It will always be like that.

Measure your security from gold and silver's (land mass) perspective not your currency (vessel) which is on the ocean (worlds currencies) as it is continuously moving and changing.

Paper money is typically an asset to the party holding it and a liability to banks issuing it. Gold is only an asset.

Our education centre will help you get started with owning physical #gold and #silver.

Take control of your future, you won't regret it.

Thank you for reading this far, part 2 will be posted as soon as it's finished.