Patek Philippe

At the Federal Reserve’s desired 2% inflation/devaluation annually, you will lose nearly 22% due to inflation in only 10 years and a staggering 48% in only 20 years. Of course it is how they choose to calculate inflation and the actual cause/effect and buying power as goods and services can go up or down due to efficiencies or the need to cover the ever-high highly skilled labor costs. As you probably well know, governments/central banks seem to change how they calculate inflation to better fit into their scheme. By reducing actual inflation via calculations and changines, this helps lower the cost for the US Government of, for example, Social Security liability (cost of living adjustment, or COLA for short).

So yes, it may sound frightening, yet those with high net worth, a longstanding knowledge of currencies and wealth protection do understand that holding on to one's buying power is very important. Many common sense investment advisors do suggest from 5% to 15% holding in physical metals. This is nothing new or drastic, simply common sense in a diversified portfolio against risk. In the past week or so the chairmen of the United States Federal Reserve bank commented that holding gold protects against “tail risk, really really bad outcomes”. Perhaps the wealthiest family in the world for nearly a century, Sir Evelyn Rothschild commented on CNBC during the recent severe downturn that if one is safety conscience they should hold on to their gold bars. Of course if you are wiser than Bernanke or Rothschild please PM me your investment wisdoms.