Wealth=Wise(Investments+Strategies)

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Jason Hommel did a very powerful post on Are you smart enough to do compound interest ?

Picture Source :universitycu.org

He was reading an article from an old newspaper that

only 80% of people could calculate that 10% of 1000 was 100. Wow. There are some real dummies out there if 1 in 5 can’t figure that out. How do waitresses survive if 1/5th of their customers can’t figure out how to tip 15-20%? Maybe the dummies can’t afford to go out to eat? Sorry, I’m getting sidetracked.

Here’s the real shocker from the article: Only 18% of people could calculate how much money you would have, if you started with $200, and saw it gain 10% twice in a row!

Well, do you know how to do compound interest ?

If you don’t, these are few links that might help you.
http://www.smartmoney.com/compoundcalc/

http://www.smartmoney.com/compoundcalc/
http://www.moneychimp.com/calculator/compound_interest_calculator.htm
http://math.about.com/library/blcompoundinterest.htm

And he continue :

Silver is moving up now, from 2003 to 2008, from $4.15/oz. to $21/oz. now. Over that time span, what was the average annual percentage gain? You don’t have to do the math by hand, instead, use a compound interest calculator. I’ll wait. In fact, I have to use one of those web sites myself.

The first link is the best for this problem. I note that silver is up 406%, and is up an average of 38.3% over those last 5 years. In 2005, I predicted that silver would probably go up by 30-60% per year for at least 15 years, and I listed many reasons for that estimate, and I’ve been right on target:

http://www.silverstockreport.com/email/Future_Gold_and_Silver_Prices.html

Do you know what would happen if silver goes up 30% per year for the next 15 years, and what that could mean for you? Go ahead, calculate it. I’ll have to do it myself.

If you save $5000 in silver, at 30%, for 15 years, you will have $255,929!
$50,000 gives you $2.5 million.
$500,000 gives you $25 million!

If you can’t do simple compound interest, you shouldn’t be in stocks, you should only own silver

I believe in what Jason said above because I bought a silver stock (SSRI) in 2002 for $3.50, today it is $40 and the other (HL) at $4, HL, and today it is $12.

Yes, silver is the best compounding interest tool for the next 10 years to go.

You can subscribe to Jason wisdom at his site at : http://www.silverstockreport.com/

Tags: Investment:Gold //