In this post we are going to look at the question of “what is the difference between currency and money?” Before I was involved in the $120 Billion precious metals industry, I, like most people, probably did not fully understand what is the difference between currency and money.
I have come to realise now, that understanding the difference between currency and money is the key that can unlock the door to your future wealth.
When we talk about finances, the 3 most commonly misunderstood words are; Money, Currency and Wealth. People typically don’t understand the difference between currency and money.
Many bankers and financial accountants probably do not fully understand the difference between currency and money. To understand this difference and act on that knowledge can mean the difference between creating real wealth versus living a life of struggle and mediocrity.
Most people seem to think that the paper notes they carry around in their wallet or purse is real money. It certainly is not! This is what is known as currency; fiat currency.
What Is Currency?
Currency is what most people think money is!- It is a medium of exchange.
- A unit of account. (it’s got numbers on it!).
- It is portable.
- It is durable.
- It is divisible. (you can make change from it).
- It is fungible (interchangeable).
- Currency is simply paper. This paper money is a tool for trading your time.
- Currency has no intrinsic value!
One of the biggest problems with currency is that the governments can print more and more of it whenever they want or need to.
This naturally puts more total currency into global circulation which in turn means that the currency is constantly losing its value.
If there is more of something, it obviously becomes less rare and therefore less valuable. This dilution of the currency supply is continuously transferring wealth out of your pocket and your bank account straight to the government and the banking system.
Frighteningly though, if you think that your only “store of wealth” is in the holding of paper currency (which ultimately is only worth the paper it is printed on), then this concept means that your purchasing power is being constantly reduced!
Think about it. There are millions of examples of this, but lets take petrol for instance. How many litres of petrol would a paper $20 note have bought you 10 years ago? How about 5 years ago? How about 1 year ago? I hope you are getting the picture?!
That same paper $20 note will not buy you any where near as many litres of petrol as it would have done 1, 5 or 10 years ago. As currencies get devalued, we lose our purchasing power unless we are building a store of wealth in real money (silver and or gold).
Historically there have been thousands of currencies and all fiat currencies (which are not backed by gold and silver) have gone to ZERO! That’s a 100% failure rate for fiat currencies!
What Is Money
- Money is a store of value and maintains its purchasing power over a long period of time plus:
- It is a medium of exchange.
- A unit of account.
- It is portable.
- It is durable. (it never changes from one century to the next).
- It is divisible. (you can make change from it).
- It is fungible (interchangeable). It is the same wherever it is on earth.
- Silver and gold have intrinsic value!
It is a medium of exchange.Silver and gold is the optimum form of money because of its properties. You can store a large amount of value in a very small area.
Only silver and gold have maintained their purchasing power over the last 5000 years! This is because silver and gold are limited in quantity – there is only a finite amount of silver and gold on planet earth!
Crucial Questions To Ask Yourself
- Do you want to protect your purchasing power?
- Do you want to preserve your wealth?
- Do you want to leverage yourself into a position of potential financial freedom?
- Do you want to position yourself in front of one of the greatest opportunities in history?
- Do you want to ensure that you are taking part in the greatest wealth transfer in the history of mankind?
If you answered YES to any of the above questions, then we would suggest that you gradually start to exchange some paper currency for some solid silver – in particular, solid silver or solid gold coins.
What Is Wealth?
According to wikipedia, wealth can be defined as an abundance of valuable resources or material possessions. Generally, economists define wealth as “anything of value” which includes the sum of natural and physical assets.
It is also true to say that your true wealth is your time and your freedom.
As economic gold and silver expert Mike Maloney says; wealth is never destroyed, it is merely transferred! This means on the opposite side of every crisis there is a massive opportunity! You need to decide what side of the wealth transfer you want to be on! The pricing moves for silver and gold that lie in the years ahead will be talked about for generations.
It is no secret that Robert Kiyosaki is one of the wealthiest men in the world and he has been collecting silver for decades. In fact – he now even owns a silver mine! Smart move! Robert Kiyosaki openly admits in his training books and online videos that he believes silver is the greatest opportunity he has ever seen! He even thinks that at some point, silver will increase to around $6,000 per ounce.
Mike Maloney Explains What Is The Difference Between Currency And Money?
Shocking Loss Of Purchasing Power Of Currency
Robert Kiyosaki’s View On The Value Of Real Money
For The First Time There Is Less Silver On Planet Earth Than Gold!
Robert Kiyosaki – Silver Is The Greatest Opportunity In History
So do you now fully understand what is the difference between currency and money? I hope so! One thing is for sure. If you are able to make a habit of acquiring some solid silver for yourself regularly, then you will help to position yourself on the right side of a pending and powerful wealth transfer.
