The Pi-Rate Ratings

April 12, 2020

Special Quick Monetary Advice

Filed under: News & Views — Tags: , , , , , , — piratings @ 7:07 am

Don’t Fall For The Scams!


Hello to all regular PiRate Ratings readers.  For 99% of you stopping by, those of you who are competent in analytics, this special publication is something you obviously know, since we take pride in knowing that the overall IQ of our readers is off the charts above normal.

However, even though this may be quite obvious to you, chances are you know many people that cannot grasp what is obvious to you.

During this time of unprecedented global emergency times, unscrupulous medicine shows will sprout everywhere on your computers and phones.  We have seen it already here in our homes, where we gave seen popup ads for buying gold and silver before they go up 10 fold, and another ad has appeared warning us to buy Bitcoin before it skyrockets forward.

These ads attempt to sell the public based on fear.  The fear that panic will run rampant in the streets and paper money will become worthless as you need wheelbarrows full of it to buy a bottle of milk.  These nefarious nabobs use their psychology to get you to put your money in something other than legal tender trying to convince you that your money will be worthless at this point.

Ask yourself these questions.

If your paper dollars will be worthless if there is a legitimate massive shortage of food, why would metal or electronic coinage be worth anything?  If Smith has 10 pounds of potatoes, and Jones has enough gold or Bitcoin to pay for 10 pounds of potatoes, but Smith needs 10 pounds of rice, and there is a global emergency where money is worthless, which will be worth more–the metal or the food?  Obviously, if there was a real emergency with money becoming worthless, durable goods will be the important currency, and barter will replace financial trade.  Some of these bunko artists tell you that you cannot eat the paper dollars in times like this.  Actually, you can eat paper a lot easier than pieces of metal.

Ask yourself this important question.  If these scoundrels believe that only gold and silver is going to be worth anything in their perceived future, then why are they willing to offer you their gold and silver for your paper currency?

Gold and silver are excellent inflation hedges and nothing more.  The same amount of gold in 1920 bought you a nice new Ford than it does in 2020.  There have been short-time disparities, but in the long run, gold and silver will match overall inflation, mostly because more money is printed.

Ask yourself this question: Would you be willing to invest in a retirement account at the age of 25 only to find that in 40 years, your account is worth the exact same thing it has always been worth?  If you invest the equivalent of a new Ford today, and in 40 years withdraw what will buy a new Ford then, what’s the point in investing at all?

The foundation of free and open markets is that if we invest at a young age and continue to invest through the course of our careers, when we reach retirement age, we will have enough money to buy multiple Fords as well as food and clothing for the next three decades.

Durable goods, those essentials that can be stored over time, might be the superior investment if there really was to be an emergency.  Many of you might have seen unbearable lines at the grocery or department stores.  The fear might begin to be realistic if this pandemic begins to shut down the wholesale providers of these goods, and it might cause additional runs on these goods as people begin to panic worrying that their refrigerators and pantries will soon be empty.

Will people be lining up in droves to buy gold, silver, or Bitcoins?  No, and these commodities will not have any extra worth.  When the demand for something outweighs the supply, it is that something or somethings that become the more valuable commodities.

I am not telling you to run to the grocery store at 4 AM after becoming 100% liquid to be first in line tomorrow morning, so you can buy out the store in beans and rice.  What I am telling you is that when some nefarious naybob attempts to sell you gold and tells you that your paper dollars are going to be worthless, ask the bunko artist why he or she wants your paper dollars for his or her gold.  Then, laugh and leave.

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