Over the last decade, there has been a large debate over capitalism and socialism. When you try to think about what the future will look like, it’s important to take these terms seriously. Young people are increasingly inclined towards socialist ideals, and they are fundamentally different than the capitalist society we live in today.
In addition, both of these modes of rule are intertwined with the value of a currency, as they are with precious metals. This is an interesting subject to think about since you will find a piece of both in the way we live life today. Click here to read more.
Let’s start with the government. If we were living in a socialist utopia, the government would control everything. The means of production will be controlled and owned by the government. This means that our individual choices would have no influence over how things should be.
Everything would be left in the hands of a few people. Compared to the free market, under that kind of rule, prices would make zero sense, they would be stifled, and decision-making would be rendered useless. Today, prices are determined based on supply and demand, as well as how difficult something is to create or manufacture.
The basis of the world we live in comes from scarcity since no one would be willing to do anything difficult if they couldn’t sell their efforts to live a more comfortable life. Let’s look at a simple example.
Everyone wants to buy and own a private island all to themselves, but only a small percentage of people can actually afford to do so. You can go to metal-res.com to read more. The goal here is to determine the differences between these two approaches to how they handle resources and how hard money like gold and silver will be integral to both.
The main differences
It’s important to know that we don’t live in a capitalist society today too. As with anything, ideals remain something that will be impossible to accomplish. In an ideal capitalist society, the free market would decide for anything.
On the other hand, communism and the like place a high value on central planning. This is basically the battle between going completely centralized versus going completely decentralized. In an ideal scenario, both of these approaches are correct, depending on what you’re looking to achieve.
Let’s look at the free market. That’s a place where you can sell or buy goods and services based on the terms set by the entire world. Everything that gets purchased or sold influences the price of other goods and services. There are no restrictions when it comes to entry, and no one can limit the share of others.
At the moment, most countries have a relatively free-market approach with a bit of centralized planning when it comes to allocating financial capital. In this case, central banks are seeing to control the dynamics of the market by issuing fiat currencies, which eventually result in inflation.
This creates a doomsday cycle that happens every decade or so, which is called normal in the textbooks. It’s quite easy to label something as normal, but it’s not easy to look at people who are suffering when inflation eats away their life savings. For that reason, it’s important to look at one approach that could change this vicious cycle that happens everywhere and in every regime.
What can you do to secure a stable future?
As people, we have an innate preference when it comes to allocating time and resources. The only potential and motivation to save money now and spend it later would be if that amount of money could be worth more in the future.
This is the basis of investing and saving. In the case of a free market, the rates would always be positive since everyone would live with fewer resources than they think they need. The only thing that can stand the test of time in every scenario that economists can imagine is a precious metal such as gold and silver.
These two monetary equivalents have been used throughout history as monetary equivalents, and they can’t be artificially controlled by the government. Even though money markets can be centralized or decentralized by the power of banks, they can’t handle the problem that comes with silver and gold.
Whenever there was a crisis in which a currency flipped and lost value, the people that lived in those countries immediately switched over to a system based on gold and silver. The latter was mostly used for smaller purchases such as goods and services. Gold, on the other hand, was used for large asset-buying such as cars or houses.
What can you do?
Apart from becoming more informed about the state of the world, it’s important to set aside at least ten percent of your earnings and transform it into a hard asset. You can also switch your IRA and base it on precious metals.
There are plenty of financial institutions that could help you in doing so. Investors allocate 90 percent of their portfolios to be assets that are safe and can’t fail the test of time. That’s divided between stocks, bonds, real estate, and precious metals.
Depending on your view of the world, you can change the percentage any way you like. There are custodians that will help you determine interest rates and see how market trends and dynamics are going to shape the future. In any case, you need something that will be recession-proof, and that’s gold and silver.