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Inflation Proof Savings - Part I

The Hidden Financial Secrets of the Elite Wealthy, Rich and Famous

Tom La Falce

June 18, 2007

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Why would anyone want to put their hard earned money into Precious Metals or Numismatic Coin Savings Program rather than a Traditional Savings Account, Investment, 401K or Retirement or College Fund?

A very good question! Only about 1 percent of the population in the United States saves precious metals. And who are these people? The elite wealthy, rich and famous that’s who! And why is that? Because Precious Metals and Numismatic Coins maintain their purchasing power, because they are a tangible asset; are recession proof and fights inflation where plain old Federal Reserve Notes (the US Dollars) do not!

So why haven’t others saved this way in Precious Metals or Numismatic Coins? Mainly because everyone else outside of these select few think that it costs a lot of money to save this way but most likely because they have no idea that a program like this even exists. And for this reason the rich get richer and the poor or the uninformed get poorer.

Ninety-nine percent of the people here in the United States who do not save in Precious Metals and/or in Numismatic Coins were simply taught at an early age to save money the Traditional Way through Banks, Bonds, CD’s, 401K’s, IRA’s, using certain Stocks, Mutual Funds and Real Estate, through Businesses or through other forms of Retirement Programs. And why is this? Because their parents, teachers, co-workers and/or friends didn’t know any better since they were not taught this themselves. So if you have no idea other programs are out there or even existed, how can you tell share this with others?

The next question or concern is where did these elite wealthy, rich and famous learn these special hidden methods and well kept secrets of saving and protecting their money from inflation and a downward economy? These well kept secrets have been passed down from generation to generation and it has become almost second nature. The elite wealthy, rich and famous do not keep most of their dollars (Federal Reserve Notes) in a bank (outside of having enough to cover their monthly expenses) but transfer them into real money and tangible assets… real money like gold, silver and platinum precious metals and/or numismatic coins and/or other tangible assets like diamonds, pearls, emeralds, certain antiques, real estate, automobiles and collectable art which all are tangible assets.

Outside of the certain real estate most other forms of savings mentioned above have a higher risk factor. History has shown that Mutual Funds, the Stock Market which heads up a 401K over the last twenty some years have lost between forty and sixty percent of their original value. You see when you invest money, you put money at risk… however when you save money in a tangible asset like Precious Metals and or Numismatic Coins (that you hold in your possession), what are the risk? There is none!

There are a few things regular people outside of the elite wealthy, rich and famous do not think about when it comes to figuring out what their actual real gain on their money is. One of the most important things they forget is the Rate of Inflation and Interest Rates. Inflation and interest rates are a huge kicker that is working against the purchasing power of your dollar, also know as devaluation. Example: If you have a $100 how much in real buying power do you think your money actually has? Back in 1964 the dollar was worth 100 pennies and today t’s only worth about 17 cents on that same dollar. So this means for ever $100 you have or saved it’s only worth about $17 in Real Purchasing Power. If you have made or saved $100,000 your True Purchasing Power is only worth about $17,000. What? How can that be you are saying? This is not true! Then ask yourself this; are the costs of my healthcare, insurance, homes, automobiles, gasoline, travel, food, clothing, children’s education, typical cost of living or even a cup of coffee gone up? Why is that? Once again it’s because of inflation and interest rates! Since our U.S. Dollars (Federal Reserve Notes) are not back by anything like a tangible asset because we have been off the gold and silver standard since 1964, each and every week, month and year your dollar, our dollars decrease in purchasing power.

Now not to make things even worse, let me ask you another simple question. How much are you actually gaining on your money in a traditional saving account? If you have $100 in a savings account and you are earning 2% interest (if you are lucky) on your money… and since inflation is running at a rate of 5%, what are you actually gaining? Nothing at all! You are actually loosing 3% of your money each and every month. And it’s for this reason why the elite wealthy, rich and famous do not keep their monies in a bank or savings account.

To be continued… Stay Tune for Part II

© 2007 Tom La Falce

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