CHISWICK, WEST LONDON – Greetings from my hometown…

It’s time for our weekly mailbag edition, where I answer the latest questions you’ve sent in.

Lots of ground to cover this week – including travel… the Dow-to-Gold ratio… and buying gold online.

But to kick things off, I want to correct an error from the April 23 Postcard, where I miswrote about the advice I gave my mum at the end of her life…

Reader question: Thanks in advance for your time to read this. You wrote, “She was at the end of her life and I’d tell her there was no benefit for her in taking the risk of owning stocks, or crypto, or even gold… and that she should go 100% to cash.”

My wife and I, too, are at 15 years or less of life. We have a little metal, stocks, and cash in a brokerage account. Are you saying 100% cash, as in cash in hand? Or perhaps bonds, CDs, or mutual funds? Thank you for what you do to help so many of your readers.

I’m glad you asked this question because it gives me the chance to clarify my comments from two weeks ago.

My response then was wrong. I don’t know why I included “or even gold” in my response. Maybe I meant gold stocks? I’m not sure how this mistake slipped through but I’m grateful you pointed this error out.

Gold IS cash.

It’s the one, single most riskless asset one can possibly own… even safer than $100 bills, especially now that the U.S. government is broke and actively promoting consumer price inflation.

Were my mother still alive, I’d tell her not to take any risk by owning stocks, cryptos, bonds, etc., and that she should hold only what best guarantees the future purchasing power of her savings.

And that would be gold.

Reader question: Assuming the woman who wrote you on April 23 is correct, that she will live another 15 years… In view of the several risks to the purchasing power of the dollar, isn’t 15 years a very long time to be solely invested in cash?

Yes, I expect one U.S. dollar will buy considerably less in 15 years than it buys today. When I used the word “cash” in my response to that reader two weeks ago, I really meant “gold.” (Not sure why I miswrote.)

With the level of debt in the world, and the willingness of central bankers to inflate… gold – not fiat currency – is the safest, least risky way to preserve purchasing power that exists, over all time frames.

But the point I was making was, towards the end of our lives, we shouldn’t be taking risk. The cost of losing our savings would be far more painful than any benefit we might get from increasing our savings.

Reader question: Today, where would you rather live if you had to live in India or China?

India. I fell in love with India when we visited. It’s a magical place. I loved the smells, the sounds, and the feelings I got when I was there.

I liked China but I didn’t fall in love with it. I also found the surveillance and government control unnerving.

Reader question: While I agree that the Dow-to-Gold ratio of 5 is not an absolute, I have trouble understanding how the Dow and not gold compounds. Do not both, only differently?!

The stocks in the Dow produce profits over time. Some of those profits get reinvested, while some of them get paid out as dividends and are reinvested by the shareholder.

Either way, the value of the Dow compounds over time. It’s sort of like an oak tree that grows a bit every year.

Gold is more like a rock. It doesn’t produce cash flow or profits and it doesn’t compound over time.

Reader question: You have mentioned a couple of times where you prefer to purchase your gold. Since I am a first-time buyer, can you help me understand the security processes in buying and receiving gold and silver coins and bullion?

I have some uncertainty in sending thousands of dollars to an unknown group and waiting for a secure delivery. Please help me understand your purchasing workflow processes in the acquisition of these metals.

Your information has been transformational for those of us that have a low financial IQ!!!

I was pretty nervous the first time I bought gold through the mail, too.

It seems a little crazy to wire thousands of dollars to a coin dealer and then wait for a little heavy package to show up on your doorstep a few days later.

But as long as you buy from reputable dealers, it works. (You’ll find a list of three dealers I’ve personally bought gold from over the years in this Postcard.)

With a reputable dealer, you’re not liable if the package gets lost in transit. Only when you sign for the package do you take ownership of the gold. Until then, it’s the dealer’s problem, which is why they insure their packages.

Reader question: I have thoroughly enjoyed reading your posts and advice for probably a year now. The only thing I don’t hear from you is what you’re teaching the children about what will happen when they leave this Earth/die?

You have spoken of your mother’s passing, and even of eventually your own. Hopefully you are sharing the Bible with your children, also.

We are a Christian family and we read from the Bible.

And that’s all we have time for today… As always, please keep writing us at [email protected].

I can’t give personalized investment advice, but I’ll answer as many of your questions as possible in future Friday mailbag editions.

– Tom Dyson

Like what you’re reading? Send your thoughts to [email protected].