14 Comments
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Money Vikings (Jerry)'s avatar

Love the mental health and gold etf suggestions. Sad our purchasing power is eroding. Just signed up for you your beta trade alerting service. I’m always looking for ideas!

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Eric Hyde's avatar

Roger that! Thanks for signing up! Feedback always welcome.

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Tankster's avatar

I think Barry Ritholtz observed that if you have dollar denominated assets the "purchasing power" of the dollar has been stable if not rising. See, e.g., the "Wealth Effect." The Dow in 1910 was at 74 mol. Now it's 33,816, or 457 times higher. In 1940, median price of a home was $2,938. Now it's $380,000. 129 times "more." Not apples to apples, but examples. This discounts the fact that our Gini coefficient was 42.5 a few years ago, up there with Iran and Haiti, much higher than W Europe and less than say Mozambique and Hing Kong....Higher is lore unequal lower is equal to save time looking it up (CIA Factbook).

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TraderSimon's avatar

Thanks Eric for the recommendation. Much appreciated!

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Eric Hyde's avatar

Of course!

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Martin Prior's avatar

Thanks for the mention Eric.

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Eric Hyde's avatar

Yup...it resonated with me. Good job.

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Ted Levi Toldman's avatar

Great article, I loved it. Good tips Eric, keep up the good work!

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Eric Hyde's avatar

Thanks Ted!

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Six Bravo's avatar

Intriguing perspectives. Thanks for sharing.

What are your thoughts on precious metal royalty companies?

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Eric Hyde's avatar

Thanks Six Bravo. I like royalty companies and own two. They are great when inflationary drivers cause mining costs to rise. In that environment royalty companies outperform.

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Six Bravo's avatar

Thanks for the reply, Eric! Yeah, we agree with your assessment. That were we are most long in the gold space.

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Eric Hyde's avatar

Awesome…and yes, great place. Less risk.

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Eric Hyde's avatar

I agree with your comment. I will add, however, it's the asset you own that holds your purchasing power, not the denomination in which it is "held". Holding dollars is what kills purchasing power. Holding assets in general is the way to build wealth. Gold has been a stable form...consistent, less volatile. Other assets, like housing, have proven to do extremely well historically (and obviously). From there, the asset does well or not as well depending on where we are in the cycle. Financial asset vs hard asset, etc.

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