Silver coins beat the house. This short personal anecdote shared by Liberty Coin Service in Lansing Michigan, is a perfect demonstration of why it is prudent for most everyone to own some bullion-priced physical gold and silver coins and ingots.

Fifty years ago, my mother purchased a home for $29,000. Three years ago, one of my brothers purchased the home from my mother’s estate for $100,000. Did this home really more than triple in value over the years?

Absolutely not!

According to the Federal Reserve Bank of Saint Louis at https://fred.stlouisfed.org/series/M1SL, the M1 definition of the U.S. money supply when my mother purchased her home was $177 billion. When this house sold three years ago, the U.S. money supply had grown to more than $2.8 trillion, an increase of more than 15 times.

Had the value of the home simply kept up with the inflation of the money supply, it should have sold for more than $450,000. Instead it went for less than one-fourth of this amount.  Obviously, the value of this home did not come anywhere close to offsetting the loss of purchasing power caused by government inflation of the money supply.

By the way, when my mother purchased this home, she was saving the silver coins in her pocket change. When she died, these coins had increased in value almost the exact same amount as the increase in the U.S. M1 money supply.

That’s right. Owning silver coins better protected her from the economic losses suffered from government inflation of the money supply than did owning her own home.

Think about it.

 

Source: Silver Coins Beat the House • Liberty Coin