In this video, I discuss how does PM protect us from inflation? I cannot see it doing this in the current climate. With the squeeze on cost of living to all of us, how is it going to protect us?
Just thinking out loud really my thoughts and showing my Journey.
I am not a financial advisor, this video is for entertainment purposes only.
email: averagestacker@hotmail.com…(read more)
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HOW TO INVEST IN SILVER: Silver IRA Investing
Inflation is a dreaded economic phenomenon that occurs when the purchasing power of currency decreases over time, causing the prices of goods and services to rise. Inflation can have many detrimental effects on an economy, such as eroding people’s savings, discouraging investment, and reducing real wages. Therefore, many individuals, businesses, and governments take steps to protect themselves from inflation. In this article, we will explore how some common strategies help protect us from inflation.
Investing in Real Assets
One of the best ways to protect oneself from rising inflation is to invest in real assets such as real estate, gold, and silver. Real assets are physical, tangible assets that retain their value even when currency values fluctuate. For example, an individual who owns a house, a piece of land, or a precious metal like gold, will likely see the value of these assets increase during inflationary times. As inflation pushes up prices, these assets become more valuable because they are a store of wealth that is not linked to the currency.
Hedging with Inflation-Linked Securities
Another strategy to protect oneself from inflation is to invest in inflation-linked securities. These are financial instruments whose returns are tied to the inflation rate. For example, a bond issued by the government or a corporation may have a coupon rate that increases with inflation, allowing investors to earn a real return. Similarly, some mutual funds and exchange-traded funds (ETFs) invest in inflation-linked bonds, commodities, and stocks to provide exposure to inflationary assets. By investing in these securities, investors can hedge against inflation while still earning a return on their investments.
Diversifying Across Asset Classes and Currencies
Diversification is another crucial strategy to protect oneself from inflation. By diversifying across asset classes, investors reduce their exposure to any particular market or sector that could be impacted by inflation. Investors can also diversify across currencies by investing in foreign currencies that are relatively stable or that have a lower inflation rate than their domestic currency. This strategy can help reduce the effects of inflation on investments made in the home currency.
Protecting Income with Cost-of-Living Adjustments and Raises
Lastly, individuals can protect themselves from inflation by negotiating for cost-of-living adjustments (COLAs) or raises in their salaries. COLAs are periodic adjustments made to income levels to account for changes in the cost of living. For example, some private sector workers have contracts that provide for annual COLA adjustments to their salaries. Similarly, workers can discuss with their employers the possibility of getting raises that at least keep up with inflation. By protecting income, individuals can maintain their financial well-being despite inflationary pressures.
In conclusion, there are several ways to protect oneself from inflationary pressures. Investing in real assets, hedging with inflation-linked securities, diversifying across asset classes and currencies, as well as negotiating for cost-of-living adjustments and raises, can help mitigate the negative effects of inflation. By taking these steps, individuals, businesses, and governments can maintain their purchasing power and financial stability even during times of inflation.
Unless you purchased Silver a few years ago the only way I can see us breaking even on our purchases at the moment is to sell coins on Ebay or privately. And we can only really break even if we purchased Silver in bulk, by that I mean 5 coins or more to take advantage of reduced premiums. I understand not everyone has the money to buy in bulk and rather than save up want to purchase silver now but buying from Ebay is not a cheap way to do it if they’re paying up to £27 for a 1oz Britannia plus over £3 postage when 5 coins from Atkinson’s will be around £25 each
I’ve bought precious metals knowing it fluctuates in value and the only ones that may profit from it are my kids. I would like to think it will increase in value so I benefit a bit also but I think we have to go into it knowing this may not be the case
Silver is a long term investment. You cant hold it for a short period and expect a return. Its notorious for its swings and you have to buy and sell at the right time or you will lose. What is for sure is that as currency devalues the price of assets valued in it will rise. That's why it is a good bet against inflation but so are many other things that are not in a bubble.
I too find silver to be disappointing, it is now priced at pre-pandemic levels. Silver is long term only, sell it when you retire or even better pass it on to your children (inheritance tax free). Many world and country issues are on the horizon. Never sell anything at a loss. I am glad I bought mine and I do not look at the silver price that often – this is a big mistake. Put it away and ''forget' you own it. It is a great asset.
It will over time. If you had £5k in the bank and all your bills go up the 5K is not spent immediately to pay those increses, its over time, the 5K savings will dwindle and buy less and less over the coming years until is…pooof…gone! Your silver will still be there and as things slowly get revalued your silver will come out the other side nice and shiny.
While bills are rocketing people are struggling to pay day to day expenses let alone buy silver so demand for silver will be a little stagnated but it will catch up, if £20 in a few years time will only buy half as much as it does today then im sure it would not be buying twice as much silver!
And you know the cost to produce everything will be going up including silver, the costs to any business suppling that silver will go up, there is only the premium above the raw material cost that can cover those increses otherwise pooof…all businesses supplying silver are gone and that is why premiums had been going up already. Once silver does go up it becomes a better store of wealth and will be more attractive to invest in, like gold did when it went from £200 oz to what we know now, silver has not achieved that kind of increse but it has a potential of doing so but the potential of your £5k in the bank is a little more bleak in my opinion, the 5K in the bank is falling off a cliff where as the silver is slowly climbing that cliff face and has all its security pegs and ropes in place to keep it secure.
It's a long term thing, I got back into Bullion to take my money out of the bank and have something a bit safer than cash, But I have also stopped buying now and just hording cash now until everything crashes then I'll be buying everything.
If you are not in for the long game, you will lose.
I bought 7 yrs ago at $23CAD, I can now liquidate (even though Ag is low) at $33/34 an oz.
By that math I am up more than 50%…Did it protect me? Hell yes!
Cheers