MONEY: Savings in bullion for education and retirement

Avoiding the Student Loan Bubble With Silver

Obviously, the growing costs associated with education — as evidenced by the trillion dollar student loan bubble with an unprecedented and growing 17% default rate — seems unsustainable to say the least.

A seemingly meager investment in silver made at today’s prices could eventually prevent your childrenfrom having to rely on student loan debt where they would end up owing a large amount of money by the time they graduate. This logic might even impress those investors who are not otherwise predisposed to understanding or otherwise caring about the white metal.

For example, making just a $30,000 investment in silver today for your children’s education will most likely grow in value many times over a holding period of 15 years. Silver’s future appreciation will very likely outpaceboth the consumer price inflation index, and will probably even exceed the higher rate of inflation in college education, which is currently running at ridiculous levels.

Furthermore, if your child ultimately decides not to go to college, or gets a scholarship to fund their studies instead, your prudent investment in silver will provide quite a nest egg to help them start out in life, buy their first home, etc.

# – # – #  

Interesting. I wonder if non-IRA/401k savers will use the bullion round to fund their future retirement. 

When I look at the cost of living as denominated in silver and gold, the monetary inflation is wrung out.

Perhaps, that’s what savers should be doing. 

By holding the bullion, you eliminate inflation, counterparty, “Cyprus” / custodian, Gooferment, and rate of return risk. 

Rate of return risk is an interesting concept. When using dollar denominated savings, one calculates the rate of return. But it doesn’t include the “inflation” rate. Savings today have a small nominal interest rate and an undetermined inflation rate. The Gooferment claims it is zero. It doesn’t feel that it’s zero.

So if I “save” in ounces of silver, then I know my rate of return is zero. But, the good part is that I can’t lose ground.

Money is no longer a reliable “unit of account” or “store of value”. Bullion is the “new money”.

# – # – # – # – #