“MONETARY INFLATIONIS A SILENT KILLER OFYOUR CONVENTION SAVING”
MONETARY INFLATION
Monetary Inflation is happening everday and most of the people
don’t realize it. 20 years ago, RM100 was enough to sustain a week’s
meal for a whole family but because of Monetary Inflation
the value of RM100 is getting lower and lower every year.
RM100 today can’t even sustain a person’s 3 daily meals. Money i
n the bank saving account is shrinking everyday because dropping
value on paper currency. Monetary inflation also has a big
effect on investment part, example Properties investment.
A double story house in 2002 had cost RM326,478.00.
After 15 years the value has gone up 225% to RM736,000.00,
which has a profit of RM409,522.00 in 15 years.
Now we compare the property to gold
by exchanging the property’s value into gold in Kilograms.
The comparison shows an opposite result of losing -62% in gold.
This shows that, your profit in properties is no longer a profit
when money inflation accrues over period of time.
On the other hand, if we transform RM326,478.00 into gold in 2002,
after 15 years by 2017, the gold will have an increment of 400% on value
which is approximate value of RM1,305,912.00 and with a profit of
approximately RM979,434.00. This data had proven that transforming
your cash into gold is much better than if you invested on properties.
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