9 March 2013

How to Sort out Pensions - Historical Values

The pensions business is a huge multi-billion business. So you can imagine every advisor, banker, insurance man that does have a pension plan, saver plan, corporate sponsored pension, etc. will try to sell the product. 

Some governments started to sponsor these pension plans but in exchange for the free money from the government you will be not able to access the money before you have reached the age 65. How much will the money be worth in 10 years’ time?

The correct answer is: ‘It will be worth much less than today.’ So continuing with a pension plan will be a guaranteed loss. As the system of banks, insurance companies and advisors can’t provide a sufficient solution; we’re looking into an alternative strategy. A way of investing that preserves and gains in value.  Let’s look back at historical figures when gold and silver have been used as money to find out how much the average person has earned and spent to make a living. The average person in the Roman Empire earned 240 denarius per year. The denarius is a silver coin that weighs between 3.4 and 3.9 grams.


How to sort out your retirement

A person needed 876 grams of silver per year to buy food, drink, shelter, and clothes; short to make a living. Let’s assume the average person worked 52 weeks per year, six days per week. That brings the average daily salary to 2.8 grams of silver. We can round it up a bit and say 1/10th  oz of silver made you a basic living 2000 years ago. (1/10th oz = 3.11 grams) That means in modern terms you would need 365 days times 1/10 oz silver = 36.5 oz of silver per year per person. 


365oz of silver would buy you 10 years of basic retirement

730oz of silver would buy you 20 years of basic retirement

How to sort out your retirement

If you plan to spend the happy times with your darling, then multiply the above figure with 2. What we know from research over the last 800 years and 80 countries is that sooner or later paper-currencies fail – no exception. At the time the paper-currency fails silver and gold will have their natural purchasing power back. With natural purchasing power I mean a value that is not artificially held down and manipulated.

Looked at this situation from a different point of view, spending 10,000 Euro for 365oz of silver is manageable in order to have a basic retirement. So, we salute all the manipulators and thank them for making it so easy for us to become safe and wealthy with little money. Even if you initially can’t afford to buy 365 to 730oz of silver, start with a few ounces per month and you will make it. Buy silver always physically and go through Estonia with VAT-free Silver Coins if you live in the EU.


Author: Stefan Krämer

Expert Recommendations on Buying Gold & Silver:

Weight: 31.10 g
Purity: 999.9/1000
Country: United Kingdom
Mint: The Royal British Mint
Packing: 25 per tube
Masterbox: 500
Grading: Mint State; Uncirculated
Tax: Taxfree acc. to article 17(1)3 Eston. VAT Act
Weight: 31.10 g
Purity: 999.9 / 1000
Country: Canada
Mint: The Royal Canadian Mint
Packing: Single in bag; 25 per Tube
Masterbox: 500
Grading: Mint State; Uncirculated
Tax: Taxfree acc. to article 17(1)3 Est. VAT Act
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