1 00:00:12,919 --> 00:00:15,619 [Elena Reyes] Picture a family sitting down with the monthly bills. 2 00:00:16,079 --> 00:00:18,879 [Elena Reyes] The news that morning says the economy looks strong. 3 00:00:19,260 --> 00:00:21,539 [Elena Reyes] The grocery receipt says something else. 4 00:00:22,079 --> 00:00:23,660 [Elena Reyes] That gap is where we begin. 5 00:00:24,280 --> 00:00:27,859 [Elena Reyes] I'm Elena, and this is Outside the Dollar, our weekly money and 6 00:00:27,920 --> 00:00:28,539 [Elena Reyes] metals brief. 7 00:00:29,179 --> 00:00:31,059 [Elena Reyes] On paper, the numbers can look solid. 8 00:00:31,460 --> 00:00:36,320 [Elena Reyes] At home, prices still feel high, borrowing still feels expensive, and there's 9 00:00:36,359 --> 00:00:40,159 [Elena Reyes] a quiet question about what your savings will actually buy years from 10 00:00:40,200 --> 00:00:40,420 [Elena Reyes] now. 11 00:00:41,240 --> 00:00:44,659 [Elena Reyes] Here's what I want you to listen for: the economy, global bond 12 00:00:44,700 --> 00:00:49,060 [Elena Reyes] markets, gold, silver, and inflation sound like separate stories. 13 00:00:49,420 --> 00:00:49,899 [Elena Reyes] They aren't. 14 00:00:50,219 --> 00:00:50,840 [Elena Reyes] They connect. 15 00:00:51,359 --> 00:00:54,719 [Elena Reyes] We'll move from the household budget to the bond market to gold 16 00:00:54,759 --> 00:00:58,420 [Elena Reyes] and silver, and then to the simple math of what inflation does 17 00:00:58,479 --> 00:00:59,079 [Elena Reyes] over time. 18 00:00:59,560 --> 00:01:01,759 [Elena Reyes] Each stop leads naturally to the next. 19 00:01:02,380 --> 00:01:03,560 [Elena Reyes] Quick note before we begin. 20 00:01:04,000 --> 00:01:07,180 [Elena Reyes] If you want to learn more about physical gold and silver, text 21 00:01:07,379 --> 00:01:09,659 [Elena Reyes] dollar to four three three four three. 22 00:01:10,099 --> 00:01:13,000 [Elena Reyes] This is educational, not a recommendation of what to own. 23 00:01:13,719 --> 00:01:17,280 [Elena Reyes] Now, the disconnect between the headline numbers and the kitchen table. 24 00:01:17,680 --> 00:01:18,359 [Elena Reyes] Let's start there. 25 00:01:24,200 --> 00:01:28,040 [Elena Reyes] A National Review opinion piece published at the end of September is 26 00:01:28,099 --> 00:01:31,480 [Elena Reyes] titled The Economy Is Great and Also Terrible. 27 00:01:32,060 --> 00:01:34,319 [Elena Reyes] The title is the whole tension in one line. 28 00:01:35,060 --> 00:01:38,799 [Elena Reyes] The writer says Americans' reservations come down to three things. 29 00:01:39,379 --> 00:01:42,560 [Elena Reyes] First, high and rising prices above all else. 30 00:01:43,159 --> 00:01:48,060 [Elena Reyes] Second, a diminished pathway to upward mobility, primarily through renting and home 31 00:01:48,099 --> 00:01:48,420 [Elena Reyes] buying. 32 00:01:49,079 --> 00:01:54,019 [Elena Reyes] Third, a pervasive feeling of economic uncertainty, and so a feeling of 33 00:01:54,099 --> 00:01:54,799 [Elena Reyes] insecurity. 34 00:01:55,540 --> 00:01:56,439 [Elena Reyes] Notice the order. 35 00:01:56,920 --> 00:02:00,739 [Elena Reyes] Prices come first, and the piece says above all else. 36 00:02:01,480 --> 00:02:03,079 [Elena Reyes] Let's think about why that might be. 37 00:02:03,599 --> 00:02:06,959 [Elena Reyes] Prices are the part of the economy you meet over and over. 38 00:02:07,480 --> 00:02:09,258 [Elena Reyes] You do not need a chart to notice them. 39 00:02:09,580 --> 00:02:12,879 [Elena Reyes] You notice them every time you pay for something you buy regularly, 40 00:02:13,340 --> 00:02:15,659 [Elena Reyes] and you notice when the total keeps creeping up. 41 00:02:16,520 --> 00:02:19,759 [Elena Reyes] Some economic numbers suggest the US is holding up well. 42 00:02:20,240 --> 00:02:25,460 [Elena Reyes] Americans are still dealing with elevated prices, expensive borrowing, and a softer 43 00:02:25,520 --> 00:02:26,180 [Elena Reyes] job market. 44 00:02:26,840 --> 00:02:29,879 [Elena Reyes] Think of a headline number as a view from a plane window. 45 00:02:30,379 --> 00:02:32,439 [Elena Reyes] The whole country looks tidy from up there. 46 00:02:33,000 --> 00:02:36,879 [Elena Reyes] Your own street with its rent or its mortgage quote looks different. 47 00:02:37,500 --> 00:02:41,240 [Elena Reyes] And a job market that has softened changes how secure a paycheck 48 00:02:41,360 --> 00:02:44,039 [Elena Reyes] feels, even if you still have the paycheck. 49 00:02:44,500 --> 00:02:46,199 [Elena Reyes] That is the uncertainty piece. 50 00:02:46,979 --> 00:02:49,340 [Elena Reyes] The mobility point deserves a second look. 51 00:02:49,939 --> 00:02:53,319 [Elena Reyes] Renting and home buying are the usual ladder for building wealth. 52 00:02:53,780 --> 00:02:57,879 [Elena Reyes] If borrowing is expensive, that ladder has fewer rungs for a lot 53 00:02:57,919 --> 00:02:58,620 [Elena Reyes] of households. 54 00:02:59,180 --> 00:03:01,840 [Elena Reyes] Picture someone who rents and hopes to buy one day. 55 00:03:02,340 --> 00:03:05,960 [Elena Reyes] If more of each month goes to everyday costs, there may be 56 00:03:06,039 --> 00:03:07,500 [Elena Reyes] less left to set aside. 57 00:03:08,020 --> 00:03:11,259 [Elena Reyes] And if the borrowing quote on a home is higher, the goal 58 00:03:11,300 --> 00:03:12,539 [Elena Reyes] can feel further away. 59 00:03:13,180 --> 00:03:16,039 [Elena Reyes] Both pressures land on the same person at once. 60 00:03:16,759 --> 00:03:19,379 [Elena Reyes] Then there's the third reservation, uncertainty. 61 00:03:19,919 --> 00:03:22,280 [Elena Reyes] It's hard to measure, but people can feel it. 62 00:03:22,819 --> 00:03:26,000 [Elena Reyes] When you're not sure what things will cost or how steady your 63 00:03:26,060 --> 00:03:30,020 [Elena Reyes] income will be, it's harder to plan and harder to feel confident 64 00:03:30,080 --> 00:03:31,780 [Elena Reyes] about the savings you already have. 65 00:03:32,419 --> 00:03:36,099 [Elena Reyes] So a strong number and a stressed household can both be true 66 00:03:36,159 --> 00:03:36,620 [Elena Reyes] at once. 67 00:03:37,099 --> 00:03:38,580 [Elena Reyes] They're measuring different things. 68 00:03:39,139 --> 00:03:43,180 [Elena Reyes] One measures output, and the other measures what's left after the bills. 69 00:03:43,759 --> 00:03:44,580 [Elena Reyes] Does that make sense? 70 00:03:45,080 --> 00:03:47,099 [Elena Reyes] A household doesn't live in the average. 71 00:03:47,300 --> 00:03:48,759 [Elena Reyes] It lives in its own budget. 72 00:03:49,360 --> 00:03:52,620 [Elena Reyes] And borrowing costs are a good place to follow that budget. 73 00:03:53,139 --> 00:03:56,400 [Elena Reyes] That's one major source of the pressure, and it's not just a 74 00:03:56,479 --> 00:03:57,199 [Elena Reyes] US problem. 75 00:03:57,500 --> 00:03:59,060 [Elena Reyes] Other countries are feeling it too. 76 00:04:04,900 --> 00:04:07,560 [Elena Reyes] Start with a headline from Yahoo Finance this week. 77 00:04:07,719 --> 00:04:12,120 [Elena Reyes] It's titled Sell-off in US and European Government Bonds Deepens. 78 00:04:12,680 --> 00:04:16,819 [Elena Reyes] The article says the sell-off pushed ten-year Treasury yields and German Bund 79 00:04:16,899 --> 00:04:18,660 [Elena Reyes] yields to multi-year highs. 80 00:04:19,220 --> 00:04:22,939 [Elena Reyes] The trigger was yet another setback in efforts to resolve the Middle 81 00:04:23,000 --> 00:04:25,800 [Elena Reyes] Middle East conflict, which drove oil prices higher. 82 00:04:26,399 --> 00:04:29,959 [Elena Reyes] You might wonder how a Middle East story ends up moving German 83 00:04:30,060 --> 00:04:30,480 [Elena Reyes] bonds. 84 00:04:31,060 --> 00:04:32,160 [Elena Reyes] Oil is the connection. 85 00:04:32,600 --> 00:04:37,079 [Elena Reyes] Pricier oil can push inflation worries up everywhere at once, and bond 86 00:04:37,139 --> 00:04:39,060 [Elena Reyes] investors react to that fast. 87 00:04:39,680 --> 00:04:42,939 [Elena Reyes] You may also keep hearing the word yield and wonder what it 88 00:04:43,000 --> 00:04:44,279 [Elena Reyes] means in plain terms. 89 00:04:44,720 --> 00:04:46,500 [Elena Reyes] Think of it as a price of lending. 90 00:04:46,939 --> 00:04:50,199 [Elena Reyes] A yield is the return investors demand for lending money to a 91 00:04:50,240 --> 00:04:50,660 [Elena Reyes] government. 92 00:04:51,040 --> 00:04:55,259 [Elena Reyes] When bonds get sold off, that demanded return goes up, and the 93 00:04:55,319 --> 00:04:59,680 [Elena Reyes] thirty-year Treasury yield has now climbed above five and a half percent. 94 00:05:00,199 --> 00:05:02,620 [Elena Reyes] That is a long loan at a high rate. 95 00:05:03,259 --> 00:05:07,319 [Elena Reyes] Borrowing costs in Germany and the UK have also reached levels not 96 00:05:07,399 --> 00:05:10,620 [Elena Reyes] seen in years, so this isn't one country's quirk. 97 00:05:11,160 --> 00:05:14,399 [Elena Reyes] Now, you might say, "I don't own a thirty-year Treasury, so why 98 00:05:14,439 --> 00:05:15,019 [Elena Reyes] would I care?" 99 00:05:15,540 --> 00:05:19,399 [Elena Reyes] Because government yields can act as a reference point for other borrowing. 100 00:05:19,839 --> 00:05:23,540 [Elena Reyes] Higher ones can push up mortgage rates, business loans, and other everyday 101 00:05:23,620 --> 00:05:24,019 [Elena Reyes] credit. 102 00:05:24,639 --> 00:05:25,779 [Elena Reyes] Let's make that concrete. 103 00:05:26,139 --> 00:05:28,540 [Elena Reyes] A family shopping for a mortgage could feel it. 104 00:05:28,860 --> 00:05:31,480 [Elena Reyes] The rate they are quoted may end up higher than it would 105 00:05:31,500 --> 00:05:35,060 [Elena Reyes] have been if government yields had stayed lower, and that can change 106 00:05:35,100 --> 00:05:38,399 [Elena Reyes] what a monthly payment looks like or whether a home feels within 107 00:05:38,480 --> 00:05:39,259 [Elena Reyes] reach at all. 108 00:05:39,779 --> 00:05:41,779 [Elena Reyes] The same logic can apply to a business. 109 00:05:42,160 --> 00:05:45,639 [Elena Reyes] A company weighing a loan to expand may face a higher bar 110 00:05:45,699 --> 00:05:46,959 [Elena Reyes] before it even starts. 111 00:05:47,459 --> 00:05:51,860 [Elena Reyes] If borrowing costs more, some plans may get smaller or wait, and 112 00:05:51,899 --> 00:05:54,420 [Elena Reyes] that can circle back to the job market we talked about a 113 00:05:54,480 --> 00:05:55,100 [Elena Reyes] moment ago. 114 00:05:55,620 --> 00:05:58,500 [Elena Reyes] Then there's the question of rate cuts, which a lot of people 115 00:05:58,519 --> 00:05:59,339 [Elena Reyes] have been waiting on. 116 00:05:59,879 --> 00:06:04,399 [Elena Reyes] Rising oil prices add inflation concerns, and that makes lower rates more 117 00:06:04,459 --> 00:06:04,920 [Elena Reyes] difficult. 118 00:06:05,339 --> 00:06:08,379 [Elena Reyes] If prices are climbing again, there's less room to ease. 119 00:06:08,899 --> 00:06:13,399 [Elena Reyes] Put those pieces together, and you get costly borrowing, stubborn prices, and 120 00:06:13,459 --> 00:06:14,699 [Elena Reyes] no obvious relief. 121 00:06:15,180 --> 00:06:17,879 [Elena Reyes] For a household, that's a squeeze from both sides. 122 00:06:18,420 --> 00:06:22,680 [Elena Reyes] And notice who else is under strain here, governments themselves with debt 123 00:06:22,740 --> 00:06:24,300 [Elena Reyes] to finance at these yields. 124 00:06:24,819 --> 00:06:29,180 [Elena Reyes] Debt, inflation, and bond market pressure are exactly what some investors point 125 00:06:29,240 --> 00:06:33,160 [Elena Reyes] to when they start looking at gold, which is a long-term story 126 00:06:33,199 --> 00:06:33,939 [Elena Reyes] worth hearing out. 127 00:06:39,579 --> 00:06:42,660 [Elena Reyes] Gold is where a lot of this bond pressure seems to land. 128 00:06:43,220 --> 00:06:48,220 [Elena Reyes] An AEI economist named Desmond Lachman recently wrote a piece called The 129 00:06:48,240 --> 00:06:49,439 [Elena Reyes] Bull Case for Gold. 130 00:06:50,160 --> 00:06:55,319 [Elena Reyes] His argument is that mounting government debt, inflation concerns, and strain across 131 00:06:55,399 --> 00:06:59,319 [Elena Reyes] global bond markets could strengthen gold's long-term appeal. 132 00:07:00,120 --> 00:07:04,019 [Elena Reyes] Now, the detail I find most interesting is how he builds it. 133 00:07:04,660 --> 00:07:08,139 [Elena Reyes] The case does not rest only on the US heading toward a 134 00:07:08,160 --> 00:07:10,600 [Elena Reyes] bond market crisis and higher inflation. 135 00:07:11,259 --> 00:07:15,339 [Elena Reyes] It rests on the other major government bond markets having very shaky 136 00:07:15,379 --> 00:07:16,480 [Elena Reyes] fundamentals, too. 137 00:07:17,180 --> 00:07:19,620 [Elena Reyes] He goes as far as saying that if there were ever a 138 00:07:19,680 --> 00:07:24,180 [Elena Reyes] case for the so-called debasement trade in gold, it must be today. 139 00:07:24,980 --> 00:07:27,399 [Elena Reyes] So why does the shakiness abroad matter? 140 00:07:28,120 --> 00:07:32,759 [Elena Reyes] If several major economies face fiscal challenges at the same time, those 141 00:07:32,819 --> 00:07:36,959 [Elena Reyes] traditional alternatives to US treasuries may be harder to find. 142 00:07:37,800 --> 00:07:39,959 [Elena Reyes] That is where gold enters the conversation. 143 00:07:40,500 --> 00:07:44,680 [Elena Reyes] It's an asset people can research when they think about diversification and 144 00:07:44,740 --> 00:07:48,279 [Elena Reyes] about preserving purchasing power over long stretches of time. 145 00:07:49,019 --> 00:07:52,639 [Elena Reyes] Diversification simply means not leaning on one thing. 146 00:07:53,399 --> 00:07:57,360 [Elena Reyes] Anyone curious should look at how it could fit alongside everything else 147 00:07:57,399 --> 00:08:01,180 [Elena Reyes] they own and at what physical ownership actually involves. 148 00:08:01,779 --> 00:08:03,540 [Elena Reyes] Does that make sense as a starting frame? 149 00:08:04,240 --> 00:08:07,480 [Elena Reyes] If you want to learn more about owning physical gold and silver, 150 00:08:07,740 --> 00:08:12,259 [Elena Reyes] text DOLLAR to four three three four three, and silver is part 151 00:08:12,300 --> 00:08:13,560 [Elena Reyes] of that same conversation. 152 00:08:19,620 --> 00:08:21,720 [Elena Reyes] Silver has had a rougher ride lately. 153 00:08:22,060 --> 00:08:24,800 [Elena Reyes] It has pulled back sharply from its January highs. 154 00:08:25,500 --> 00:08:30,720 [Elena Reyes] Still, analyst Charlie Morris, who works at ByteTree, thinks the longer-term story 155 00:08:30,800 --> 00:08:31,720 [Elena Reyes] may be intact. 156 00:08:32,399 --> 00:08:35,700 [Elena Reyes] Morris says the next leg of silver's bull market is in the 157 00:08:35,799 --> 00:08:36,120 [Elena Reyes] offing. 158 00:08:36,820 --> 00:08:38,440 [Elena Reyes] So what is his case built on? 159 00:08:38,980 --> 00:08:41,320 [Elena Reyes] The way it's summarized, there are three reasons. 160 00:08:41,899 --> 00:08:44,039 [Elena Reyes] First, a global supply deficit. 161 00:08:44,519 --> 00:08:48,039 [Elena Reyes] In plain terms, that means the world may be wanting more silver 162 00:08:48,059 --> 00:08:50,600 [Elena Reyes] than the mining and recycling system is delivering. 163 00:08:51,360 --> 00:08:53,059 [Elena Reyes] Second, industrial demand. 164 00:08:53,700 --> 00:08:58,120 [Elena Reyes] Silver goes into electronics and into medical technology, so some of the 165 00:08:58,200 --> 00:09:02,539 [Elena Reyes] appetite comes from factories and hospitals, not only from people who buy 166 00:09:02,580 --> 00:09:03,740 [Elena Reyes] it as a store of value. 167 00:09:04,440 --> 00:09:06,120 [Elena Reyes] That mix is worth pausing on. 168 00:09:06,679 --> 00:09:10,080 [Elena Reyes] Demand that comes from industry is a different kind of demand than 169 00:09:10,120 --> 00:09:14,220 [Elena Reyes] people simply holding metal, and it is one reason silver is often 170 00:09:14,259 --> 00:09:15,940 [Elena Reyes] discussed differently from gold. 171 00:09:16,740 --> 00:09:17,759 [Elena Reyes] Third, gold. 172 00:09:18,320 --> 00:09:22,879 [Elena Reyes] If stronger gold prices continue, that could also support silver because the 173 00:09:22,940 --> 00:09:25,139 [Elena Reyes] two metals often draw attention together. 174 00:09:25,919 --> 00:09:28,320 [Elena Reyes] Think about how that connects to the last story. 175 00:09:28,879 --> 00:09:32,919 [Elena Reyes] If worries about debt and bonds keep people looking at gold, some 176 00:09:32,960 --> 00:09:35,600 [Elena Reyes] of that curiosity may spill over to silver. 177 00:09:36,240 --> 00:09:39,899 [Elena Reyes] But a sharp pullback from the January highs cuts the other way. 178 00:09:40,460 --> 00:09:44,600 [Elena Reyes] Anyone researching silver has to be comfortable with big swings, and that 179 00:09:44,659 --> 00:09:49,000 [Elena Reyes] is a personal question about time horizon and tolerance, not something a 180 00:09:49,059 --> 00:09:50,460 [Elena Reyes] podcast can answer for you. 181 00:09:51,159 --> 00:09:53,320 [Elena Reyes] Now, step back from the metals for a second. 182 00:09:53,879 --> 00:09:59,480 [Elena Reyes] Gold, silver, bond yields, grocery bills, mortgage rates, every one of those 183 00:09:59,539 --> 00:10:03,700 [Elena Reyes] stories comes back to a single basic issue: What happens to the 184 00:10:03,759 --> 00:10:05,480 [Elena Reyes] value of your money over time? 185 00:10:11,460 --> 00:10:13,179 [Elena Reyes] Start with a plain price tag. 186 00:10:13,679 --> 00:10:16,159 [Elena Reyes] Say something costs one hundred dollars today. 187 00:10:16,679 --> 00:10:19,919 [Elena Reyes] Inflation does not add the same few dollars each year. 188 00:10:20,360 --> 00:10:24,059 [Elena Reyes] It adds a percentage to a price that already rose, and that 189 00:10:24,100 --> 00:10:25,340 [Elena Reyes] is what compounding means. 190 00:10:26,039 --> 00:10:30,320 [Elena Reyes] Take three percent annual inflation as an illustration and not a forecast. 191 00:10:30,840 --> 00:10:34,620 [Elena Reyes] After ten years, that one hundred dollar item would cost about one 192 00:10:34,659 --> 00:10:35,960 [Elena Reyes] hundred and thirty-four dollars. 193 00:10:36,620 --> 00:10:37,159 [Elena Reyes] Keep going. 194 00:10:37,539 --> 00:10:41,159 [Elena Reyes] At fifteen years, it would be about one hundred and fifty-six dollars. 195 00:10:41,580 --> 00:10:44,700 [Elena Reyes] At twenty years, about one hundred and eighty-one dollars. 196 00:10:45,379 --> 00:10:46,200 [Elena Reyes] Notice the pace. 197 00:10:46,679 --> 00:10:50,500 [Elena Reyes] Three percent sounds small, yet the price is close to double in 198 00:10:50,559 --> 00:10:51,259 [Elena Reyes] twenty years. 199 00:10:52,019 --> 00:10:53,519 [Elena Reyes] Think of it as a household budget. 200 00:10:54,000 --> 00:10:57,940 [Elena Reyes] Imagine a basket of everyday goods that costs one hundred dollars this 201 00:10:58,000 --> 00:10:58,200 [Elena Reyes] year. 202 00:10:58,740 --> 00:11:02,700 [Elena Reyes] If your paycheck and your savings stay exactly where they are, that 203 00:11:02,799 --> 00:11:06,419 [Elena Reyes] same basket asks for more of your money every year, and the 204 00:11:06,500 --> 00:11:09,720 [Elena Reyes] extra piles up on top of the extra from the year before. 205 00:11:10,440 --> 00:11:12,039 [Elena Reyes] Now put it on a savings balance. 206 00:11:12,399 --> 00:11:15,919 [Elena Reyes] Picture one hundred thousand dollars earning no return at all. 207 00:11:16,399 --> 00:11:20,240 [Elena Reyes] Twenty years later, the statement still says one hundred thousand dollars. 208 00:11:21,279 --> 00:11:25,440 [Elena Reyes] Imagine that same three percent, its purchasing power would be equivalent to 209 00:11:25,519 --> 00:11:29,220 [Elena Reyes] about fifty-five thousand four hundred dollars in today's money. 210 00:11:29,820 --> 00:11:31,340 [Elena Reyes] That gap has two names. 211 00:11:31,799 --> 00:11:34,519 [Elena Reyes] Nominal value is the number printed on the statement. 212 00:11:35,039 --> 00:11:38,960 [Elena Reyes] Real purchasing power is what that number actually buys at the checkout. 213 00:11:39,620 --> 00:11:40,840 [Elena Reyes] Let's walk through it once more. 214 00:11:41,419 --> 00:11:44,940 [Elena Reyes] Nominal says one hundred thousand, the same as the day you started. 215 00:11:45,399 --> 00:11:49,279 [Elena Reyes] Real says that same pile now does the work of roughly fifty-five 216 00:11:49,399 --> 00:11:51,279 [Elena Reyes] thousand dollars from today's money. 217 00:11:51,679 --> 00:11:52,980 [Elena Reyes] The paper did not shrink. 218 00:11:53,240 --> 00:11:54,879 [Elena Reyes] The prices around it grew. 219 00:11:55,399 --> 00:11:58,379 [Elena Reyes] The nominal number never moved, so nothing looks wrong. 220 00:11:58,740 --> 00:12:02,100 [Elena Reyes] Nobody gets a letter saying you lost forty some percent of your 221 00:12:02,139 --> 00:12:02,840 [Elena Reyes] buying power. 222 00:12:03,159 --> 00:12:07,259 [Elena Reyes] It happens quietly, and that is why inflation is called a silent 223 00:12:07,360 --> 00:12:08,179 [Elena Reyes] savings killer. 224 00:12:08,740 --> 00:12:12,200 [Elena Reyes] And remember, this is an illustration at one assumed rate. 225 00:12:12,580 --> 00:12:16,100 [Elena Reyes] Real life will not follow a straight line, but the lesson holds. 226 00:12:16,480 --> 00:12:19,820 [Elena Reyes] When you plan for the long term, the question is not only 227 00:12:19,899 --> 00:12:23,299 [Elena Reyes] how many dollars you will have, but what those dollars will buy. 228 00:12:24,100 --> 00:12:28,899 [Elena Reyes] World Gold Council information is showing that gold has historically outpaced both 229 00:12:29,139 --> 00:12:33,279 [Elena Reyes] US and global consumer price indexes since nineteen seventy-one. 230 00:12:34,340 --> 00:12:37,179 [Elena Reyes] Borrowing costs, debt, oil, metals. 231 00:12:37,659 --> 00:12:40,600 [Elena Reyes] Each story we've covered has been pulling at one question. 232 00:12:41,080 --> 00:12:42,980 [Elena Reyes] So what ties all of this together? 233 00:12:48,700 --> 00:12:53,960 [Elena Reyes] Borrowing costs, debt worries, and inflation all press on one thing: What 234 00:12:54,000 --> 00:12:56,059 [Elena Reyes] your savings can buy years from now. 235 00:12:56,700 --> 00:13:00,799 [Elena Reyes] Physical gold and silver are tangible assets you may want to research 236 00:13:00,840 --> 00:13:01,960 [Elena Reyes] for diversification. 237 00:13:02,480 --> 00:13:06,620 [Elena Reyes] One takeaway for the week: Next time a price surprises you, ask 238 00:13:06,639 --> 00:13:09,659 [Elena Reyes] what your savings would buy at that price in twenty years. 239 00:13:10,120 --> 00:13:14,159 [Elena Reyes] Text DOLLAR to 43343 to learn more about 240 00:13:14,200 --> 00:13:16,620 [Elena Reyes] physical gold and silver from Lear Capital.