By Ludger J. Borger
President, Borger Capital Group LLC
As we step into this new year, I want to extend my heartfelt wishes to you all for success, prosperity, and countless blessings in 2025. This is a time for fresh beginnings, thoughtful planning, and taking steps to secure a brighter future for ourselves and our loved ones. With that in mind, let’s reflect on the lessons history offers us about financial resilience and how we can apply them today.
Fiat currencies — those unmoored from tangible assets like gold or silver — are the financial equivalent of castles built on sand. History repeatedly tells us that no purely fiat currency has ever stood the test of time for more than a century. Every fiat currency that has relied solely on the decree of its government has eventually succumbed to collapse. But why? And what does this mean for us today?
The Fragility of Fiat
Fiat currencies rely on trust. Unlike gold or silver, which have intrinsic value due to their scarcity and utility, fiat money is valuable because governments say it is. The problem? Trust is a fragile thing. Economic mismanagement, inflation, and political instability have consistently eroded the faith people place in these currencies.
Let’s take a brief look at the track record:
The French Assignat: Introduced during the French Revolution, the assignat was initially backed by confiscated church lands. However, as the government printed more and more, its value plummeted, leading to hyperinflation and collapse within a few years.
The German Mark: After World War I, the Weimar Republic printed money to pay reparations and fund its economy. The result? Hyperinflation so extreme that people used wheelbarrows of cash to buy bread. Within a decade, the mark was replaced.
The Zimbabwean Dollar: In the early 2000s, Zimbabwe’s government printed money recklessly, leading to one of the worst hyperinflation crises in history. The currency was effectively abandoned in 2009.
The Exception? Not Quite.
You might point to currencies like the British Pound Sterling or the U.S. Dollar as exceptions. However, these currencies were backed by tangible assets for most of their history. The pound was tied to silver and later gold for centuries, and the dollar was linked to gold until 1971 when President Nixon closed the gold window, making it a purely fiat currency. These currencies are still in use today, but their fates are not guaranteed.
Since becoming fiat, both have seen significant devaluation. The U.S. dollar, for instance, has lost over 97% of its purchasing power since the Federal Reserve was established in 1913. What once bought a fine tailored suit now barely buys a fast-food meal.
The Clock Is Ticking
If history is any guide, we are living on borrowed time with today’s fiat currencies. With unprecedented levels of debt, massive money printing, and growing geopolitical instability, the question isn’t if fiat currencies will fail but when. Even central banks seem to recognize this risk. Why else would they be stockpiling gold at record levels?
Why Precious Metals Are the Answer
Gold and silver have been humanity’s true money for thousands of years. Unlike fiat currencies, they cannot be printed at will. Their value isn’t dependent on the promises of politicians or the policies of central banks. Here’s why they’re worth considering:
Intrinsic Value: Gold and silver have physical properties that make them valuable. They’re rare, durable, and have industrial uses beyond their monetary value.
Inflation Hedge: Precious metals have historically preserved purchasing power. During times of economic turmoil, they often rise in value as fiat currencies fall.
Global Acceptance: Gold and silver are recognized as valuable everywhere in the world. In times of crisis, they’re the ultimate form of portable wealth.
No Counterparty Risk: Unlike stocks, bonds, or even cash in a bank account, gold and silver are assets you own outright. They’re not someone else’s liability.
Building a Financial Fortress
As the cracks in the fiat currency system grow wider, now is the time to take action. Diversifying into precious metals isn’t just an investment; it’s a safeguard for your financial future. Gold and silver are timeless, tangible, and immune to the whims of central banks.
At Borger Capital Group, we specialize in helping clients transition their wealth into physical gold and silver. We’ll guide you through every step, from acquisition to secure storage, ensuring your financial fortress is built to last.
History is clear: fiat currencies come and go, but precious metals endure. Don’t wait for the collapse of trust in paper money. Secure your wealth with assets that have stood the test of time. Contact us today to begin protecting what matters most.
If you want to discuss your personal situation in more depth, I’m here to help. Schedule a free 30-minute strategy call here, and together, we can find the best course of action for your specific circumstances.
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