Wealth insurance – Gold and Silver
Robert Kiyosaki, the best-selling author of, “Rich Dad, Poor Dad”, shares that there are three types of money.
| People’s Money | Money Created by People & Market like cryptocurrency |
| God’s Money | Gold and Silver |
| Govt’s Money | Currency created by governments and enforced by law |
Aristotle shared 5 reasons why gold is the ultimate form of money:
- Durable: Money should not fall apart and or rot. It should be indestructible.
- Divisible: Money needs to be able to be converted into larger and smaller pieces without losing its value, to fit a transaction of any size.
- Consistent: Money is something that always looks the same so that it’s easy to recognize, each piece identical to the next. A one gram gold coin in Africa is the same as a one gram gold coin in Europe, Asia, and North & South America.
- Convenient: Money should be convenient to transport and trade with. Animals and large objects are not convenient.
- Intrinsically valuable: Money should have value in and of itself.
One of the most important reasons Aristotle did not mention is that ONLY God can create gold, it cannot be created out of thin air.
I personally view my gold and silver holdings, not as an investment.
I see it as my WEALTH INSURANCE.
It is INSURANCE against a financial meltdown and or disintegration of fiat currency.
If we never see another financial meltdown in our lifetime and or never see the complete destruction of fiat currencies, I would be very happy and still be happy with my gold and silver since it has been a store of value for centuries.
It’s INSURANCE to also protect your wealth during the disintegration in the value of most Stocks, Bonds, and Real Estate.
If we never see the disintegration in the value of most Stocks, Bonds, and Real Estate, I would again, be very happy and still be happy with my gold and silver since it has been a store of value for centuries.