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Why 🫵🏻 shouldn’t own Gold or Silver. 🪙⚱️
• Although it’s a good hedge against inflation over time, it doesn’t produce an income. Cashflow is king and bullion provides you 0.
• You can only realise a profit by selling the asset and therefore killing it, you can’t easily borrow against your billion.
• You won’t be factoring in lost opportunity cost when considering your bullion returns, the dividends, rent, interest etc you would have earned by investing in something else should be deducted from your bullion capital gains.
• You can be robbed (or pay a lot to store secure). 🔫
• In a zombie apocalypse Ammo (bullets and shotgun shells) would not only likely give you a far better return, they can be very useful too!
• In a deflation economic crisis (credit crunch) like early/mid 2008 the price of bullion went down along with everything else against cash, when you likely needed it to perform most.
So, unless you are incredibly wealthy, own all the investments and ammo you need and are simply looking to hedge against inflation for generations, then Silver and Gold are not for you.
What do you think?
#bullion#crypto#cryptocrash #investing@PeterSchiff
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