USD Purchasing Power and Current Issues with Inflation: Why buy Gold, Silver and Bitcoin

Featured below is a graph showing the “Purchasing Power of the Consumer Dollar”. This graph shows the output of the purchasing power of the dollar since November of 2006. Notice the downward trend of the purchasing power of the dollar.

This should be a concern for savers of dollars, and it should be a wake up call to action to make moves to insure their assets are beating the trend of inflation.

Recall: Inflation is the expansion of the monetary base(money supply) that is greater than the actual amount of metal stored. In this case, the metal considered would be gold or silver.

Consider all the stimulus packages, bailouts, monetary injections, repurchase agreements, and other monetary/fiscal policy measures that have been done since 2006. While that is under consideration, think about the growing United States Government debt. If any economist is telling you inflation is low, they are not being honest. Per the definition of inflation, it is here.

This is why the smart money is on Gold, Silver, and Bitcoin. This is why serious investors, who are concerned with inflation, need to look at these assets to hedge against inflation.

(source: FRED.St Louis Federal Reserve. Time expressed in number of months)
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