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The Aftermath of the United States Going Off the Gold Standard
The Aftermath of the United States Going Off the Gold Standard
by Ranorm
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Ever since the United States went off the gold standard on August 15, 1971 investment policies and economic strategies have changed drastically. This move away from using gold as a basis for currency valuation and investment opened up new possibilities, but it also had its drawbacks. Inflation rates rose significantly and the value of the dollar decreased in real terms leading to economic, shrinkflation that continues in today's package downsizing...
Despite these negative effects investment in gold assets remains a popular investment strategy for many people, as they seek safety from inflation and other economic uncertainties. In this article, we will look at the long-term implications of going off the gold standard and how it has impacted investment strategies...
Table Of Contents
Table Of Contents
Background Information On The United States Going Off The Gold Standard
Overview Of Investment Strategies Since Then
Impact On Investment Strategies
Increased Investment In Gold Assets For Protection Against Inflation And Economic Uncertainties
The Solution To Protecting You And Your Family Against Poor Hedge Inflation
Background Information On The United States Going Off The Gold Standard
Background Information On The United States Going Off The Gold Standard
On August 15, 1971, the United States government made a historic decision to take the country off the gold standard, which had been in place since 1933. This move had a dramatic effect on our economy and investment landscape that is still felt today. When President Nixon announced that Americans no longer could convert their paper currency into gold assets, it effectively removed the United States from a standard that had been used for hundreds of years. Today, we see the effects of this decision in the form of inflation and shrinkflation. Inflation is a natural occurrence as prices for goods and services increase over time, but when coupled with our current investment landscape, it can lead to compounded losses on investment returns or even potential devaluation of investments altogether.
Shrinkflation occurs when products are reduced in size without lowering their price, leading to consumers feeling like they’re getting less than what they paid for. This means, imagine, getting the same priced toilet paper; paper towels; soup; drink beverages; food; etc, but, you get fewer quantities, for the same price you paid 6 months ago... When this happens, it means the cost goes up for companies that produce products ( thanks to inflation impacting the prices or supply chain ), they shrink the product to make up for the cost increase on their end...
By ditching the gold standard and allowing investment decisions to be based more on economic fundamentals rather than precious metals, we have seen both positive and negative outcomes stemming from this decision. It is important to recognize that while this move gave us greater investment flexibility, it also came with increased risks.
Overview Of Investment Strategies Since Then
Overview Of Investment Strategies Since Then
Since President Nixon took the United States off the gold standard on August 15, 1971, investment strategies have evolved sharply. This action resulted in a world with no hard currency backing and ushered in an era of inflation and shrinkflation. Where investment used to rely heavily on gold assets as a valuable form of investment, now investment strategies are more diverse. Investors must consider different assets such as stocks, bonds, and property in order to diversify their portfolios. The stock market has become one of the most popular investment opportunities for those seeking long-term financial stability.
Investors can also turn to commodities such as oil, gold & silver, real estate, paintings, cars, or anything that is rare when making investment decisions... Gold is especially sought after due to its relative stability compared to other investment options and because it often holds value over extended periods of time. Hence the word, "God's Money"... God's money was here before man, and, it will be here when men leave this earth...
The off-gold standard has put a focus on global economic instability which should be considered when making investment decisions. It's important for investors to understand all facets of their investment before they commit funds in order to make informed decisions that maximize their returns while minimizing their risk. In summary, the off-gold standard has created investment opportunities that were not available before and requires greater investment acumen in order to make informed investment decisions. Investors should take the time to research all investment options carefully in order to maximize their returns while minimizing their risk. As always, knowledge is power when it comes to making sound investment decisions.
When President Nixon officially took the U.S. off the gold standard on August 15, 1971, it created a new investment landscape that had some serious consequences for our economy. By taking away the backing of gold from our dollar, we have essentially replaced tangible wealth with paper fiat money that could be printed —endlessly to fund crazy government programs and spur economic growth. Which it has, check this out...
This opened up the door for massive inflation and shrinkflation two issues that have plagued the economy ever since. As investment guru Mike Maloney has explained in his various books, videos, podcasts, and blogs over the years: when you no longer require individuals or businesses to own gold assets to back their investment decisions, asset prices become subject to manipulation by governments and central banks who can create more currency at will. This has resulted in artificially inflated asset prices, currency devaluation, and a weakened investment infrastructure that leaves investors more vulnerable to market volatility than ever before. Inflation is now part of the investment process for those who want to retain their wealth, as you need to buy hard assets like gold and silver that are not subject to inflationary pressures.
By taking away the backing of gold from our dollar, we have opened up an investment landscape with major consequences for our economy. It’s time to learn from past mistakes and start investing in physical gold or silver as protection against a weakening investment infrastructure due to inflation and shrinkflation. The key takeaway here is, to get out of currency, and get into Gold and silver as a wealth strategy...
Impact On Investment Strategies
Impact On Investment Strategies
The move away from the gold standard in 1971 changed investment strategies for many decades to come. As the Federal Reserve was no longer tied to a physical asset, it allowed for greater flexibility in monetary policy and investment options but also created an environment of ever-increasing inflation.
This, unfortunately, has led to what is known again as, "shrinkflation," where prices for products go up, while you get less of the product in question.
For those who still value gold assets, this change opened up investment opportunities that would not have been available before 1971. For example, investing in precious metals alongside stocks and bonds provides diversity which can reduce risk and help protect against currency devaluation due to inflation. Gold assets may provide one of the best forms of long-term investment protection.
The move away from the gold standard on August 15, 1971, has had profound effects on investment strategies and economics as a whole. Although it removed some of the limitations associated with the gold standard, it also created an environment that is subject to huge inflation and devaluation of currency over time. Investment in diversified assets such as gold can help to protect against these effects.
Therefore, it is important for investors today to consider how this action by Nixon back in 1971 may still be affecting their investment decisions today.
Increased Investment In Gold Assets For Protection Against Inflation And Economic Uncertainties
Increased Investment In Gold Assets For Protection Against Inflation And Economic Uncertainties
On August 15, 1971, the United States officially ditched the gold standard. This major decision had a profound effect on our current economic system and investment opportunities. Gold prices were no longer tied to currency, making it easier for countries to print money and resulting in inflation and shrinkflation worldwide.
This event was monumental for investment in gold assets because it opened up a new avenue as I said, for investment that is not subject to the same fluctuations as traditional markets. Gold has been historically used as a safe haven investment during times of financial uncertainty, so when the US dropped off the gold standard, more people began to invest in gold as a hedge against inflation and other economic risks. The value of gold has increased steadily since then, providing an attractive investment opportunity. Understanding the implications of the US leaving the gold standard is important for anyone looking to invest in gold assets and protect their investment from economic uncertainties.
Gold can be a great investment tool because it isn't subject to the same inflation or shrinkflation, risks as other investment opportunities, and its value has shown steady growth since 1971. Investing in gold can be a great way to guard against economic unpredictability and ensure your investment is secure. It's important for investors to keep the history of the US leaving the gold standard in mind when making investment decisions, as this event set the tone for how our current economic system works. Investing in gold can provide a stable investment opportunity, but understanding the risks and rewards of investment is essential to making smart investment decisions...
This decision has had its own set of consequences and benefits, and you should be aware of those when considering an investment in gold assets. It's clear that the US leaving the gold standard was a major economic event. Investors should look at this event as an opportunity to understand investment risks and rewards, as well as how it shaped today's economy. Gold can provide a stable investment opportunity, but understanding the risks and rewards of investment is essential to making smart investment decisions.
I hope this blog provided some insight into why the US abandoned the gold standard of 1971, and how it affects investment decisions today Thank you for taking the time to read this blog. I hope it helps you make smart investment decisions in line with your financial goals.
The Solution To Protecting You And Your Family Against Poor Hedge Inflation
The Solution To Protecting You And Your Family Against Poor Hedge Inflation
If you're looking for the best way to not only buy, as much Gold and silver as you like but, maybe also looking for a way to store your assets in a safe place other than your house, I would highly recommend you check out this company that allows you to do all this and more. Heck, they even give you the ability to earn commissions selling a simple business model which is Gold Silver! Click here to learn more, about this superb company!
Wish you all the success in your investment endeavors! 🙂
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Great post Ranorm!