Du hast einen 1.2 MILLIONEN $ FEHLER gemacht

Benjamin Heyny

7 Jun 202403:06

Summary

TLDRThe video script discusses the devaluation of the US dollar from 1913 to 2013, highlighting the transition from gold-backed to fiat currency post-1971. It emphasizes the preservation of purchasing power by gold and silver over time, contrasting with the dollar's decline. The script illustrates the potential wealth accumulation through collecting MS70 silver eagles since 1986, which could have amassed a portfolio worth $1.2 million for a small initial investment. It also mentions the significant appreciation of unique and rare modern coins, such as the 2004 Tiffany art coin and the 2021 Julius Caesar coin, urging viewers to consider the investment in collector's items to avoid missing out on substantial returns.

Takeaways

💵 The value of the US dollar has significantly decreased over time, with a dollar in 1913 having the same purchasing power as 5 cents or less in 2013.
📉 The devaluation of the dollar and other currencies is partly due to inflation but primarily due to the shift to fiat currencies after the termination of the Bretton Woods Agreement in 1971.
🚗 In 1965, a new Mustang could be bought for $2500 or 2500 silver dollars, but the same amount in USD today would not buy a car, whereas the silver coins could still purchase two cars, demonstrating the preservation of purchasing power by precious metals.
🏆 Gold and silver have maintained their purchasing power over time, unlike fiat currencies.
💰 If one had consistently bought gold and silver over the years, they could have offset inflation and maintained their average purchasing power.
🌟 The concept of 'collectible' gold and silver is introduced, with MS70 silver eagles being a prime example, where 'MS' stands for 'mint state' and '70' indicates a perfect condition coin.
💸 By purchasing MS70 silver coins monthly since 1986, one could have amassed a portfolio worth $1.2 million for an initial investment of only $50,000 to $80,000.
🔍 The '$1.2 million dollar mistake' refers to the missed opportunity by most people to invest in such collectible precious metals.
💎 The script highlights the potential of investing in exclusive, unique, and rare modern coins, with examples of significant increases in value over time.
🌈 The Tiffany art coin from 2004, originally sold for about $100, now sells for $5,000 to $10,000, illustrating the substantial return on investment for rare coins.
📈 The script serves as a call to action to avoid the '$1.2 million dollar mistake' by building a legacy through the strategic collection of precious metals and coins.

Q & A

What is the significance of the year 1913 in the context of the US dollar's purchasing power?
-In 1913, the US dollar had a purchasing power equivalent to one dollar, which is used as a reference point to compare its value over time.
How much purchasing power did a US dollar have in 2013 compared to 1913?
-In 2013, a US dollar had a purchasing power of about 5 cents compared to its value in 1913.
What major event in 1971 is mentioned as a turning point for the value of the US dollar and other world currencies?
-In 1971, US President Richard Nixon ended the Bretton Woods Agreement, which severed the connection between the US dollar and gold, leading to a shift to fiat currencies.
What does 'fiat currency' mean in the context of the script?
-Fiat currency refers to a currency that is not backed by a physical commodity like gold, but rather by the trust and credit of the government that issues it.
Why did the value of the US dollar decrease over time according to the script?
-The value of the US dollar decreased over time due to inflation and the shift to fiat currency after the termination of the Bretton Woods Agreement in 1971.
How did gold and silver maintain their purchasing power compared to the US dollar?
-Gold and silver have historically maintained their purchasing power over time, unlike the US dollar, which has lost value.
What is the significance of the year 1965 in the script's discussion of the Mustang car?
-In 1965, a brand-new Mustang could be purchased for 2500 US dollars or 2500 US silver dollars, which would not buy a car today but would be equivalent to two cars in terms of silver value.
What does 'MS70 silver eagle' mean and why is it important in the script?
-MS70 stands for 'Mint State 70,' a grading system where MS70 indicates a coin in perfect condition. The script suggests that consistently buying MS70 silver eagles since 1986 could result in a portfolio worth 1.2 million dollars.
What is the '1.2 million dollar mistake' referred to in the script?
-The '1.2 million dollar mistake' refers to the missed opportunity to buy MS70 silver eagles regularly since 1986, which could have resulted in a valuable portfolio for a relatively small initial investment.
What are some examples of exclusive and rare modern coins mentioned in the script?
-Examples include a 2004 Tiffany art coin, a Julius Caesar coin from 2021, and the Montana Butterfly coin, all of which have significantly increased in value since their initial sale.
What is the potential benefit of focusing on collector's items as mentioned in the script?
-Focusing on collector's items, such as rare and exclusive coins, can potentially lead to a significant increase in value over time, as demonstrated by the examples provided in the script.

Outlines

00:00

💵 The Dollar's Devaluation and the 'Million Dollar Mistake'

The paragraph discusses the significant devaluation of the US dollar over time, particularly from 1913 to 2013, where the purchasing power of a dollar dropped dramatically. It highlights the impact of inflation and the shift from gold-backed currencies to fiat currencies after the termination of the Bretton Woods Agreement in 1971. The narrative uses the example of a 1965 Mustang, illustrating how the value of money has changed and how purchasing gold and silver could have preserved purchasing power. It introduces the concept of 'collector's items' and the potential for significant financial gains from investing in rare and exclusive modern coins, such as the MS70 silver eagle, which has appreciated greatly in value over time. The paragraph concludes by suggesting that by focusing on such investments, one could avoid the 'million dollar mistake' of not capitalizing on the potential of these assets.

Mindmap

Keywords

💡Purchasing Power

Purchasing power refers to the amount of goods or services that can be purchased with a unit of currency. In the context of the video, it is used to illustrate how the value of the US dollar has decreased over time, with a dollar in 1913 having more purchasing power than a dollar in 2013. The video uses this concept to highlight the loss of value in fiat currencies and the importance of investing in assets like gold and silver that have maintained their purchasing power.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. The video mentions inflation as one of the factors contributing to the devaluation of currencies over time, alongside the shift from gold-backed currencies to fiat currencies.

💡Bretton Woods Agreement

The Bretton Woods Agreement was an international monetary arrangement established in 1944 that created a system of rules for commercial and financial relations among the world's major industrial states. The video refers to the end of this agreement in 1971, when US President Nixon terminated the convertibility of the US dollar into gold, leading to a shift towards fiat currencies and the devaluation of the dollar.

💡Fiat Currency

Fiat currency is a type of currency that a government has declared to be legal tender, but it is not backed by a physical commodity like gold or silver. The video explains that after the termination of the Bretton Woods Agreement, the US dollar and other world currencies became fiat currencies, which are not backed by physical assets but by the trust in the government that issues them.

💡Gold and Silver

Gold and silver are precious metals that have historically been used as a store of value and a hedge against inflation. The video emphasizes that while fiat currencies have lost value, gold and silver have retained their purchasing power over time, making them a wise investment to counteract inflation.

💡MS70 Silver Eagle

MS70 stands for 'Mint State 70,' which is a grading system used for coins. A coin graded MS70 is considered to be in perfect condition. The video uses the example of investing in MS70 silver eagles since 1986 to demonstrate how a small, consistent investment could have grown into a portfolio worth $1.2 million, highlighting the potential of collecting high-grade coins.

💡Collectible Coins

Collectible coins are coins that are sought after by collectors for their rarity, condition, or historical significance. The video discusses the potential of investing in collectible coins, such as the MS70 silver eagle, as a way to build wealth and avoid the '$1.2 million dollar mistake' of not investing in such assets.

💡Tiffany Art Coin

The Tiffany Art Coin is mentioned in the video as an example of a collectible coin that initially sold for around $100 and now sells for between $5,000 and $10,000. This example illustrates the significant increase in value that can occur with collectible coins, underscoring the potential for high returns on investment.

💡Julius Caesar Coin

The Julius Caesar Coin from 2021 is another example of a collectible coin highlighted in the video. It was sold for around $360 including shipping and now sells for between $950 and $10,000. This example is used to show the potential for substantial appreciation in value of collectible coins over a relatively short period.

💡Montana Butterfly Coin

The Montana Butterfly Coin is cited as an example of a coin that was sold for $150 with shipping and now costs around $1,200. This instance is used in the video to demonstrate the concept of the '$1.2 million dollar mistake,' emphasizing the value of recognizing and investing in collectible coins early.

💡Portfolio

A portfolio in the context of the video refers to a collection of assets, such as collectible coins, that an individual or institution owns. The video suggests that by investing in collectible coins, one can build a valuable portfolio that can significantly appreciate over time, thus avoiding the '$1.2 million dollar mistake' of not investing in such assets.

Highlights

The US dollar's purchasing power has significantly decreased from 1913 to 2013.

In 1913, one US dollar had the purchasing power of one dollar; by 2013, it was equivalent to 5 cents or less.

The devaluation of the US dollar and other currencies over time is partly due to inflation.

The major part of the devaluation is attributed to the change in 1971 when the US ended the Bretton Woods Agreement, leading to fiat currencies.

Fiat currencies are backed by the value that governments assign to them.

In 1965, a new Mustang could be bought for $2500 or 2500 silver dollars.

Today, the same $2500 would not buy a car, but 500 silver coins could bring you two cars, illustrating the preservation of purchasing power by gold and silver.

If you had consistently bought gold and silver over the years, you would have offset inflation and maintained your average purchasing power.

Investing in collectible gold and silver coins can lead to significant wealth accumulation.

MS70 silver eagles, with MS standing for 'mint state', are coins in perfect condition.

If you had bought an MS70 silver coin every month since 1986, your portfolio could be worth $1.2 million today, for a cost of only $50,000 to $80,000.

The '$1.2 million dollar mistake' refers to the missed opportunity by most people to invest in such coins.

The US Mint produces millions of these coins every year, indicating a potential for significant investment returns.

Focusing on rare and exclusive modern coins can lead to substantial gains, as exemplified by the Tiffany art coin of 2004.

The 2004 Tiffany art coin, originally sold for about $100 including shipping, now sells for $5000 to $10,000.

The 2021 Julius Caesar coin, sold for around $360 including shipping, now sells for between $950 and $10,000.

The Montana Butterfly coin, part of the auto-save program, sold for $150 with shipping, would cost around $1200 today.

These examples illustrate the power and potential of collector's items, with a portfolio of around $10,000 possible with just a few coins and a fraction of the cost over time.

The mission is to help individuals avoid the '$1.2 million dollar mistake' by building their legacy through smart investments.