The fed is raising rates to fight inflation. If they continue to raise rates, especially into a bear market, then inflation is the last thing you need to worry about.
Keep in mind that every 1% decline in the S&P destroys $240B in dollar denominated asset value. Also keep in mind that, unlike past economic cycles, the value of all dollar denominated assets is falling (stocks, bonds, consumable commodities). This all a byproduct of the unwinding of the Fed’s QE policies.
Right now cash actually isn’t a bad place to be. Neither are precious metals, but they’re less liquid. You can’t buy gas or bread with silver.
Isaac Hill
Also, when you start talking about larger dollar values, silver is cumbersome. It’s much larger and heavier than an equivant amount of paper currency. Ive got a few thousand dollars worth of silver coins in a small safe, and it takes up a lot of space and weighs more than 15 pounds. I can carry an equivalent amount in cash in my front pocket.
Gold and platinum are better stores if larger values, for this reason among others. I actually like platinum right now. Historically it has traded at a premium to gold, but it’s been at a discount for a while. Platinum also has industrial uses (like silver) that gold does not.
Carter Campbell
What are your thoughts on the silver:gold ratio? I wouldn't mind gold, but I'm concerned it's overvalued in relation to silver.
Whether cash or PM, I think I'm in the right ballpark. I spent most of my 20's blowing money on stupid toys. Now nothing excites me other than retiring and maybe getting a hunting property - but land too seems over valued right now.
Julian Nelson
I’d ignore the Silver to Gold ratio, everyone mentions it but it seems irrelevant. Silver is a useful and treasured metal that will help you hedge against inflation. Also silver is something you can buy that feels like you are buying a toy for yourself but is actually a great form of savings. Certain coinage have different designs each year and a limited mintage giving them numismatic value that rises each year.
Brayden Morris
>that ponzi that all wagecucks thoughtlessly buy into, and which will collapse soon as the first boomers with IRAs begin to retire
I don’t really pay much attention to it. It is high, on a historical basis, but not nearly as high as the gold:platinum ratio.
Another way to look at it is this. Since the US left the gold standard in the early 70’s, the gold:silver ratio has trended up. If that trend continues, then gold may be worth more relative to silver in the future.
But again, my reason for buying gold and platinum has to do with storage. I don’t want to have to store or move 300 pounds of silver when 3 pounds of gold or 4 pounds of platinum has the same value.
Tyler Rogers
>do the math on that 401 and then the SP even with all that help with the 401 it doesnt even touch what a simple SP will do for you
If he’s getting a 50% or 100% return on invested cash through a company match, then this makes no sense. Especially when virtually all 401k plans offer index funds.
Easton Ramirez
the extra fees kill it
Jaxon Campbell
Fees aren’t going to eat up a 100% company match and a tax deduction.
