Fred Dashevsky

The Real World of Money

Fred Dashevsky is from Long Island New York. He attended University of New York at Albany and studied psychology, political science, and economics. Fred started in the coin business in 1984 in Northern New Jersey opening several offices in Southern California in the mid 80s. He returned to the east coast in 1989 and opened Hilton head office for SDL Inc. in 1991 with partner Andrew Gause. He has since opened his own business, U.S. Coin Capitol. Give him a call for your numismatic gold investments 800.878.2646

Unusual year, a lot of volatility, premium increases.

Cause of inflation is increase in money supply.  With all the money out there, is raising interest rates by the FED going to slow the inflation juggernaut down soon?

They waited way too long.  It will help, but may not be enough.

We went from a slow monetary increase to a incredibly rapid increase.

Inflation is about twice what govt. says it is.  Energy prices are a big factor, worsened by disruption in oil supplies because of Russia situation.

Govt. seems to be ignorant about their part in causing inflation.

In Reagan days, with Volker’s help, they reduced govt spending dramatically and addressed inflation from multiple points of view, including reducing spending.

Carrying cost on the debt increases debt.  Each ½ point raise increases debt $450 billion.

We pay to borrow more and more money with higher interest rates.

US can’t sustain even the interest payments.

Biden administration strategy is to spend, spend, spend, spend.  Trying to look good in the short term for political expediency.

We’re repeating the same problem as years ago, but the path chosen now will have lots more impact.  No growth, expanding money supply: a dangerous combination.

We’re still way better than Asian, European countries.  US currently perceived as a safe haven, but it will fade.  No one wants 30 yr. US Treasury bonds.

Do Biden administration people really want terrible things to happen to the US?  New inflation bill repackages Build Back Better plan.  Won’t work.  Short term thinking.

Listener asks if she should cash out her 401K.  Depends what other assets she has.  Some options for physical silver or gold retirement accounts.

Are gold or silver ETF plans a good investment?  Better than nothing, but not as good as holding physical gold and silver.

Don’t count on the government to do something for you.

Demand for physical gold and silver coins exceeds demand.

We have an Inverted yield curve – higher interest rates for shorter term loans.  Not a sign of confidence.

Will CD rates go up as FED raises interest rates?  Yes, but rates won’t rise as fast as inflation.  But locking funds into a CD limits the potential risk of loss compared to the money being in the stock market.   

Zero chance of today’s politicians waking up.

We haven’t had a president since John F. Kennedy who spent less money than came in.  Reagan spent more in 8 years than what was spent in all prior administrations, and that’s just continued with successive presidents.  We’re not expanding the supply of money simultaneously; it’s all been debt.

Two specials from US Capitol Coins:

1) Gold package: 2 gold coins, a $20 Liberty Head (1840s-1907), MS64 and a $10 Indian Head gold coin (1907-1932), created by St. Gaudens.  $4800.

2) Silver package: 20 mint state Morgan Silver Dollars, 1878-1921, MS64, and 150 ungraded silver dollars. $4425.