Last week, I got a text from my favorite ramen place. They are finally open after being closed since the pandemic started.
I ignored my logical brain telling me I should cut back on carbs. I mean, this is my favorite ramen we are talking about. I checked on their menu and low and behold, the $9 shoyu bowl is now $14.
The owner told me they are not trying to pass on the cost of their losses to the customers. It’s just that the prices of everything went up, from garlic to meat, everything is up and there is a shortage in everything.
And The Fed says inflation is negligible? Everyone is saying the economic conditions are improving?
Pre pandemic, things were in control. Prices were low, global supply chains were functioning smoothly, and to most people, it seemed like it would stay that way for the foreseeable future.
But then the pandemic hit, and “panic buying” caused short-term shortages of certain items such as toilet paper and hand sanitizer.
Money was printed to give people some spending power. So, the little we are producing plus the way too much money in the economy has resulted in this, a bowl of ramen that’s $5 more expensive.
So, that stimulus money that’s supposed to give people ‘spending power’ doesn’t really buy anybody much.
Unfortunately, our problems are bigger than a bowl of ramen.
For example, did you know that dozens of important drugs are in short supply? According to the official FDA website, there are shortages of more than 100 drugs in the United States right now.
If you found yourself in a situation like this, you can check the FDA’s drug shortage tracking system.
Right now there are currently about 120 drugs listed as having a shortage.
On the website, if you type in a drug name in the database search field you can see if and why it’s in short supply. You can also see whether it is scheduled to be discontinued, and when the supply may start flowing again.
Tom Linebarger, chairman, and chief executive of engine and generator manufacturer Cummins Inc., said that we have a shortage in everything – Copper, iron ore, and steel. Corn, coffee, wheat, and soybeans. Lumber, semiconductors, plastic, and cardboard for packaging.
And this is just our immediate needs. Our long-term needs are on even more dangerous grounds.
The money we are saving for our retirement is quickly losing value. So, if you think that $2 million will give you a comfortable retirement, not anymore. The inflation, shortages, and continuous economic crash will most likely devalue your savings by half.
Inflation and production shortage. Great, isn’t it?
So, you have two options, double your retirement savings goal or store the value of your money now.
That means investing in assets whose value, not price, value… will remain the same or go up.
There is no other asset in history that has done that better than gold.
Gold’s value 50 years ago is the same now, actually, it’s more. Through all economic crashes, political turmoils, war, and pandemic gold’s value remains.
Gold isn’t meant to be a dividend-paying investment. It is not meant to make you a millionaire overnight, not even in a year.
Gold is a hedge, equity, a store of value. It’s insurance that when everything goes down, Gold is just as valuable as ever.
All this economic turmoil should inspire you to talk to a financial advisor and when you are ready to invest in gold, we are here.