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RE: How Do you Measure your Wealth?

in #money8 years ago

Yeah eventually I have to bring everything back to USD, but what I'm trying to do is put myself on the gold standard. Gold has been money for thousands of years. If I make less in terms of gold than I did the year before at my job, I consider that a pay cut and tell myself to step it up. At the end of the day the only way to calculate your wealth in real terms is with hard assets, in my opinion. You could have a net worth of $100,000 but in ten years that money will have half as much buying power. I would much rather hold gold silver and cryptos than cash. The only reason I hold cash is for convenience. It's kind of a difficult paradigm shift to take on, but it's a fun ride!

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You should consider a basket to avoid short term noise... gold is stable over long term but can go up and down in its purchasing power (i.e. gold oil ratio, gold dow ratio etc.). Gold is a great start. Remember that gold was never money on its own, it was always part of a duel currency system (with silver). So to be on a true gold standard you would want to price with 1:12 or 1:16 ratio (or one you find historically accurate) basket of gold and silver. If it's not too complicated (and be saving with gold and silver).

I'm glad you brought up the gold dow ratio and the gold silver ratio. The gold silver ratio is so out of wack it's ridiculous. 70 ounces of silver for 1 oz of gold? You gotta be kidding me. What exactly do you mean "price with 1:12 or 1:16 ratio?" could you give me a good example of this so I can better understand?

Very interesting and thought provoking. Like it man!!!