Even though he talks a lot of nonsense, he is not entirely wrong. Inflation devalues money, and the USA and the dollar are no exception. I occasionally import car parts from the States, and these have partially increased by 30-50% in the last two years.
Just look at the development of the Swiss franc, there you can really see the devaluation.
I wrote that a comparison with other western currencies is unnecessary. I also cannot say that the euro has gained extremely because the Turkish lira has devalued by 70 percent. Both the US dollar as well as the CHF or euro have lost value and massively inflated. The US dollar even much more so.
Prices and wages in the USA have indeed risen extremely. Whether rents, food, or anything else. Anyone traveling to the USA today with euros is a poor bastard. And mind you, this is not based on the exchange rate but on the local prices.
Incomes in the USA have outpaced those in Europe. An electrician or heating engineer there earns about 150,000 dollars gross per year. And they do not pay 45 percent tax. At Ford, starting salaries have risen by 70 percent. At John Deere, all salaries by 35 percent. Just to give a few examples.
2 liters of milk can cost 10 dollars there as well.
I keep an eye on the gold price daily, one of my main investments. Currently 2040 dollars per troy ounce. That is quite close to the all-time high. Sure, you can’t eat gold, it pays no interest. But it calms you when you own it. Physically. Not at the bank.
And as we know, the euro has lost about 90 percent of its value against gold since its introduction. For some, good, for others bad.
20 years ago, a house like a modern-town villa cost maybe 1000 ounces of gold. Today, however, this house costs only 250 ounces of gold. The house has become 75 percent cheaper.
Or calculated differently. 20 years ago, I earned 8 ounces of gold per month. Today, I earn just 1 ounce per month.
So what will happen? Will the gold price crash, or will house prices continue to rise? That’s the million-dollar question.
I expect a gold price of 50,000 euros per ounce in 10-15 years. Maybe even sooner.
Gold! You buy it, put it away, and simply wait. At Christmas, you take it out and look at it under the Christmas tree, add some new ones, and just enjoy. You don’t give it away again, you don’t speculate with it.
You have security. You have all the currencies of this world combined in one coin and there is no counter-risk. It doesn’t matter if banks crash, financial advisors go bankrupt, or stock prices and certificates plunge. 1 ounce of gold will always remain 1 ounce of gold.
Today and in 1000 years.
And a good, tailor-made gentleman’s suit always costs 1 ounce of gold.
Otherwise, you should follow the old Jewish investment rule. The three spokes!
1 third gold, 1 third real estate, 1 third cash!
And now go to sleep and think about how your investments look. Because credit is not mentioned there.