Note: Real rates are calculated by taking the rate of inflation and subtract interest rate. If real rates are negative, it means that your purchasing power declines even if you deposit your currency in a “savings” account. Precious metals love negative real rates because of low opportunity costs.

Real rates

Real rates in different countries.

When you understand this concept, you should not be surprised that I as a swede, try to have as little as I possibly can in the bank. I rather use my currency units to purchase assets that does not erode (If I buy a silver coin, no one is shaving off a gram of silver per year, it stays the same).


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