According to Wikipedia, Half-life shown as (t½) is the time required for a quantity to fall to half its value as measured at the beginning of the time period. In physics, it is typically used to describe a property of radioactive decay, but may be used to describe any quantity which follows an exponential decay.
There are three aspects for having and keeping wealth. First, earn, second, spend less than you earn and third… invest the savings so they increase future spending power.
We’ll look at the earning aspect in a moment… but first let’s talk about the half life of the US dollar because most of us will at be earning and saving (or at least accounting) with the greenback… which has been proven to lose purchasing power.
This means we have to keep earning and profiting more just to financially stand still.
One way to stay abreast of how much we lose is by tracking the half life of the dollar as compared to the price of gold.
Our long time friend Charles Vollum produces the Pricedingold.com website and wrote this about the half life of the dollar: Since 2001, the US Dollar has lost half of its value every 4 years. Of course, its actual value dithers about, sometimes more than this theoretical value and sometimes less, but as you can see from the chart below, it tracks very close to this decay line.
This chart is from www.Pricedingold.com
Charles continues: The chart below also projects this line into the future, giving a reasonable guess at what the continuation of the last decade’s policies will do to the USD’s value in gold terms.
See the entire “Half Price of the Dollar” article at pricedingold.com here.
Half of our October International Investing and Business course October 4-5-6 will review ways to protect purchasing power with precious metals, commodities, real estate and multi currency investments. Thomas Fischer who is moving from Jyske in Copenhagen to ENR Asset Management in Montreal will join us to look at global portfolios and multi currency investments.
October leaf change at our North Carolina farm.
Half of our International Investing and Business Seminar is about how to earn through your own business and the other half is about how to save and invest beyond the US dollar.
We hope to see you there. October 4, 5, 6 in the Blue Ridge.