Gold and Silver Stacking

[YosemiteSam]

One of the great things about real estate is like gold, it too somewhat becomes a wealth protector also. Real estate tends to follow inflation. As inflation goes up, so does the price of real estate which helps protect the investment value. In a sense, this melts existing mortgage debt providing you didn't do something foolish like get a mortgage with a variable interest rate. (they have their uses, but not for the left of a mortgage)

I purchased a house in 2018. The value of the US dollar have been brutalized since then and my house is worth 62.5% than I paid for it. There is both advantage of my house now being worth 62.5% more, but there is more hidden value in that my remaining debt (mortgage) is now only worth somewhere around 38% less than what it was when I signed the fix rate mortgage in 2018. What I owe on my home mortgage is less valuable than when I promised to pay it, saving me money / value!

My grand parents purchased a three bedroom house in 1960 and the mortgage payment was $77 month all the way up till 1990 when it paid off. I think my first one bedroom apartment rent around that time was somewhere around $425 a month.

Real estate investment can be a bit more nuanced than I made it out to be, but purchasing a home should be part of every ones retirement planning.

 

[Rockport]

Sure, there’s risk stuffing it in your mattress, too.

Yes, you don’t earn anything with it.

 

[gtb1943]

`worst thing about stuffing your mattress is the risk of a house fire'

 

[Rockport]

`worst thing about stuffing your mattress is the risk of a house fire'

And robbery. If word ever gets out ……

 

[CyberB0b]

Yes, you don’t earn anything with it.

Worse, you get a guaranteed reduction in buying power. Nothing is risk free.

I generally like cash flowing assets, but they’re riskier. I like having a little bit of hard assets like bitcoin, metals, Pokémon cards, etc, as well. You can have self sovereignty with those, which also carries risk. Any asset that requires a greater fool will always carry the risk of demand destruction.

Either way, the only way to guarantee you lose is to hold cash.

 

[gtb1943]

having a few krugerands is not a bad backup plan.

Even if the system truly goes all the way down, a lot of people will take gold.

Now if you have long term system failure, then things like fuel and food and that sort of thing will matter more

BUT baring that kind of disaster, you always need something that is going to beat inflation