Fiat currency is defined as “Country-issued money, which is neither convertible by law to any other thing, nor fixed in value in terms of any objective standard."
In other words fiat money is backed by nothing more than a promise.
The world has printed more money and is more in debt than anytime in history. It’s only a matter of time until the debt-based system we currently use goes bankrupt.
- Hans F. Sennholz
Fiat currency is the standard currency issued by the USA and most countries in the world.
Even in economies where fiat hasn’t failed yet, by definition and design, it loses value as new currency is added to the system.
This is known as inflation. Since 1913, the USA has experienced 2,332.9% inflation.
Real property like gold and silver, on the other hand, maintains it’s purchasing power. And therefore, you preserve your wealth.
For example, in 1913, an ounce of gold was worth approximately $20.64. With that ounce of gold, you could buy a nice suit.
Today, you could still buy a high-end suit with that ounce of gold. But the $20.64 in cash doesn’t even cover the belt, a loss in value of 98.5%.
This loss in purchasing power and eventual collapse has happened to every fiat currency in history. And it will happen again.
- Peter Schiff
At Panther Strategies, we see real property like gold, silver, strategic metals, digital assets, and the forgotten store of value – diamonds, as insurance and a hedge against uncontrolled money printing, skyrocketing debt, poor monetary policy, and economic volatility worldwide.