Nearly all of us have had someone tell us “SAVE YOUR MONEY!”
“What if you lose your job?” “What if you have an emergency?”
It makes perfectly good sense to keep some dollars in the bank or under your mattress for emergencies.
However it does NOT make sense to keep more than 6 months expenses in your bank. Why not? BECAUSE INFLATION IS ROBBING YOU BLIND!
We conducted a brief study that will make this very clear to you.
PARAMETERS OF THE STUDY
The study contrasts the performance of $50,000 in Bank of America’s Platinum Savings Program against the performance of gold in the form of 1 ounce Gold American Eagle coins from 2016-2021.
The study will rely on the published inflation rate of the Bureau of Labor Statistics. Needless to say the BLS is using “fuzzy math” to push down the consumer price index. Nonetheless it will become clear that inflation takes a heavy toll on your cash savings.
This study includes a .05% annual yield for the savings account as per Bank of America’s Platinum Program. According to Bank of America’s website, you need to maintain a balance of $50,000 to get that .05%. If your account balance is lower than $50,000 your annual yield will be lower than .05%.
The gold spot price in this study originates from www.macrotrends.net.
BANK OF AMERICA PLATINUM SAVINGS ACCOUNT PERFORMACE, 2016-2021
If “John Doe” had invested $50,000 in BOA’s program in January 2016, by January of 2017 he would have lost $1,050 in purchasing power. That includes an inflation rate for that year of 2.1%.
From January of 2017 to January 2018 the loss in purchasing power would have reached $2,077.95. That number is based on the reported 2.1% inflation for that year.
Inflation for the year 2018 was at 1.9%. This means that J.D.’s $50,000 sitting in BOA would have lost $2,964.50 in purchasing power by January of 2019.
With inflation being at 1.4% for 2019, the purchasing power of John Doe’s $50,000 would have decreased $3,623 by January 2020.
From January 2020 to January of 2021 J.D.’s $50,000 in Bank of America would have dropped to a loss of $6869.39 in purchasing power. That includes the .05% bank yield. Seven percent inflation for the year 2020 really put a beating on J.D.’s saving account!
With the Bank of America’s .05% annual yield on the Platinum account, J.D.’s account balance would only be at $50,125.12.
1 OZ. GOLD AMERICAN EAGLE PERFORMANCE, 2016-2021
If “John Wise” had bought 43 1 oz. Gold American Eagles at $1,150 per coin in January of 2016 he would have spent $49,450. At that time the spot price of gold was at $1,075. By the end of the year gold was at $1,151.70. He would have already made his money back, including the premium he paid for the coin.
By the end of 2017 the spot price of gold was at $1,296.50.
By the end of 2018 gold spot price was at $1,281.65.
Gold closed at $1,523 for the year 2019.
Gold closed at $1,895.10 for the year 2020.
If Mr. Wise liquidated his 43 Gold Eagles at $40 above the spot price of $1,946.60 on January 1, 2021, he would have received a whopping $83,703.80!
FINDINGS
John Doe’s $50,125.12 reveals that his account would have only grown by only $125.12 in five years. However the purchasing power of his $50,000 would have decreased by $6,869.39 during that same time span.
John Wise would be able to liquidate his 43 1 ounce Gold Eagles for $83,703.60.
CONCLUSION
John Wise’s gold purchase would have yielded $33,578.48 more that John Doe’s Platinum account with Bank of America.
In the March of 2022 we saw the highest inflation rate since 1981.
The most trustworthy asset to offset rising inflation is physical gold. The 2022 Gold American Eagle 4 Coin Set is a safe investment that will perform well for you in this climate.
You can easily and conveniently order from our website with an e-check or crypto currency.
America, it is time to save yourself from the banking cartel and physical gold is the answer!