Whenever investing is mentioned, the first thoughts that come to mind are real estate, stocks, bonds, and cryptocurrencies. There is one common trait that all these niches share, and that’s the opportunity for passive income. If you get your hands on an apartment or a house, then you can rent it out and get a couple of hundred dollars each month.
In a couple of decades, the real estate will pay for itself, and then you can pass it on to your kids, and they can enjoy even more profits. Stocks are great because they can give back dividends. If you put a hundred dollars, then a year from now, you could have 2 dollars as a gift from the company, as well as the value of the stock that can increase in price. Click here to read more.
Bonds give back a fixed amount of interest per year, and they are the safest place to put your money. Cryptocurrencies are a new niche, but some projects give up to 10 percent APY if you buy them. That is risky because the prices can be extremely volatile daily.
However, there is another asset class that most people do not talk about that has been silent for a couple of decades. That is the asset class of gold and silver. These are tools that you can use to get your hands on more real estate, which is the best form of passive income on the planet.
Now, you might be thinking that there is no cash flow when it comes to silver or gold. You just buy an ounce or bullion, and they stay in a safe for a few years, and then you can sell them. That is precisely the point.
Even though these precious metals stay safe, the market around them is what’s constantly changing. You can use silver and gold to amass more real estate if you know when to transfer your wealth from one form to another.
How can you do it?
Looking at graphs from the stock market and comparing them to the ones from precious metals is something that you should do regularly. Here is why that is important. In 1971, Richard Nixon completely severed the relationship between the dollar and gold.
Even though that was the doing of the government, that cannot sever the invisible ties that have been interwoven for thousands of years. Gold and silver are still considered as hard forms of money. Now, the real estate market in 1971 was interesting. Follow this link to read more https://www.westernslopenow.com/news/fed-imposes-sweeping-new-limits-on-policymakers-investments/.
You could buy an entire house for 21 grand. That was the average price. When you compare it to today’s standards, it seems like it is impossible. Well, here is another interesting fact. Back then, the price of a single ounce of silver was 1.4 dollars. This means that you would need around 15 000 ounces to buy an entire house.
Now, let us fast forward a couple of years to the year 1980. At that time, the average price for a house was 43 000 dollars. Yet, the price of silver was 53 dollars. That changes the entire game. At that time, you could have bought an entire house with just 800 ounces of silver.
The price of the real estate market doubled, and the price of gold increased by a larger margin. That is why looking at charts is much better than paying attention to inflation rates which cannot tell the bigger picture.
The price of precious metals increased 15 times more than the rate of inflation. Now, here is something that a few people did that made them extremely wealthy. They sold their house in 1971 and bought silver and then invested their money back when the tides shifted.
Now, the same scenario is going to happen again. Real estate is becoming more and more overpriced. On the other hand, silver is becoming quite valuable but still undervalued. In the early 2000s, the price of an average home was at its ultimate peak.
You could buy it with 40 000 ounces of silver. Since then, the reserves of these precious metals have been emptied, and there is going to be a new bull market based on precious metals. You might ask yourself is silver a good investment for the future, and the answer would be yes. The financial news is going to be filled with headlines about the greatest craze that the world has ever seen.
Suddenly, everyone is going to turn into an expert and is going to promote silver and gold as the most valuable metals that one can possess. The scarcity is going to increase, and the people who have been stockpiling for years will make the most profits since all the other asset classes will decrease in value.
Since we are living in a bubble at the moment, it could be possible to buy a new home with as little as 500 ounces of silver. Then, in a couple of years, the real estate market is going to take over again, and precious metals are going to be undervalued. It is a vicious cycle, and you need to know how to play the game.
A few final words
There is a lot of information on the internet in this digital age. If you go down the rabbit hole, you might become confused since it is difficult to understand the entire history of currencies, as well as economic cycles.
However, with enough time invested in the topic, you can make use of the craziness that is about to happen. The United States is packing on more debt than it can handle. For that reason, you need to find ways to make a boatload of money while the dollar is not completely devalued, and inflation eats it away.
When you have settled on an asset class, it is important to invest with your head, not with your heart. You are never going to buy the lowest lows and sell the highest highs. Instead, settle for a number that you will be satisfied with, and don’t worry about what could have happened if you could do it all again.