WHY PROTECT YOUR NET WORTH WITH PRECIOUS METALS:

Gold and Debt: A Simple Yet Powerful Concept

The relationship between government debt and the price of gold is remarkably straightforward: when debt rises, so does the price of gold. This seemingly simple concept holds profound implications for investors seeking a safe haven in a world of economic uncertainty.

Consider – following the dotcom crash, gold hit a low of $256 an ounce when our national debt stood at $6.5 trillion. Fast forward to today, and gold is trading at close to $2000 an ounce, nearly 8 times higher. Yet, what’s even more astonishing is that our national debt has soared to over 5 times its 2000 levels. This means that gold’s price has risen at a rate 1.6 times faster than the growth of our national debt.

The Future of Money

According to projections from the U.S. Debt Clock, our national debt is expected to reach a staggering $45 trillion by 2027, a 36% increase from today’s levels. If we assume that gold continues to outpace debt growth by 1.6 times, it suggests that gold could reach $3,700 an ounce by 2027-representing a 60% increase from its current value.

GOLD  -VS- DEBT:  

The National Debt Clock Ticks: $37 Trillion and Counting

The national debt has been a cause for concern for some time, but it’s hard to ignore the startling figure it now displays: $37 trillion. Even more alarming is the fact that the last trillion in debt was added in just three short months. These are numbers that demand our attention and raise legitimate concerns about the future of the U.S. economy and the value of the dollar.

The Ever-Growing Debt Burden

The concept of a national debt is not always problematic. However, the rate of growth of our debt is clearly unsustainable and there is no clear strategy for repayment.

The U.S. national debt has been on an upward trajectory for decades, but the recent acceleration is alarming. Adding a trillion dollars in debt in just three months is a staggering feat and an indication that the debt issue is spiraling out of control. With the debt clock ticking relentlessly, it’s crucial to understand the implications of this growing burden.

The Dollar’s Vulnerability

One immediate concern tied to the surging national debt is the potential risk it poses to the value of the U.S. dollar. When a country accumulates substantial debt, it often resorts to loose monetary policies that put the currency at risk. This is done to manage the debt burden more effectively – good for the government – but it can erode purchasing power and lead to inflation – bad for you.

As the dollar’s value comes under pressure, individuals and investors may seek alternative ways to protect their wealth. This is where precious metals, like gold and silver, come into play. Historically, precious metals have served as a hedge against currency devaluation and economic uncertainty. In times when the value of fiat currencies is at risk, these metals tend to shine as safe havens for preserving wealth.

The Firm  Case for Precious Metals

Given the current economic conditions and changes in the geopolitical arenas it’s no surprise that many are turning to precious metals as a means of safeguarding their assets. Here are a few compelling arguments for your knowledge.

WHY BUY PRECIUOIS METAS AND CETIFIED RARE COINS?

1. Inherent Value: Precious metals have intrinsic value, unlike fiat currencies that rely on the trust and stability of governments. Gold and silver have been valued for centuries for their rarity and unique properties.
   
2. Historical Resilience: Throughout history, precious metals have demonstrated their ability to retain value and even appreciate during times of economic turmoil. They are a time-tested hedge against uncertainty.
   
3. Diversification: Adding precious metals to an investment portfolio can enhance diversification, reducing overall risk.in cash markets.They often move independently of traditional assets like stocks and bonds.
   
4. Inflation Protection: Precious metals have  historical proven effective in preserving purchasing power when inflation is on the rise. Gold & Silver tend  to rise in value as the dollar’s value declines.

Silver might not always be in the spotlight like gold, but it’s nonetheless a highly desirable and important physical asset for portfolio diversification.

 It can offer many of the same benefits as gold but at a more approachable, everyday price.

Why do people buy silver? Like gold, silver—in the form of bullion and coins—is seen as a safe-haven asset during times of political and economic adversity. 

ATTENTION: The reasons to purchase silver  go beyond that.

Learn why people buy silver and why you might want to as well.

Silver is a less expensive precious metal.

Gold may be out of reach for some people who want the security of owning precious metals but aren’t ready to spend so much. Thankfully, silver offers the benefit of being a precious metal while coming with a much smaller price tag. “Silver has historically been the most affordable precious metal,” the U.S. Mint notes. In August 2020, for instance, the price of gold climbed past $2,000/oz., while the price of silver hovered close to $37 per ounce is a really  great entry point for new buyers. Especially since analyst predict $50-$ 100 silver prices by the end of 2025 

The industrial shiny metal  is a strong performer.

Some years, silver outpaces the price gains of gold. Other years, gold gains over silver. But the fundamentals of silver “will drive the price even higher over time for the simple reason that demand will outweigh the supply. As long as you buy only from reputable dealers, buying silver … is one of the least risky [market moves] you can make,

Silver Protects Generational Wealth

Silver stands out as an asset that serves as a store of wealth. Silver has hold its own in the market and seen positive gains over the long run. A bonus is that you can easily transport silver. Another benefit of silver is that, in relatively small quantities, it can be stored in a safe at your home.

Silver provides a hedge against inflation because of its intrinsic value, as opposed to paper currency. Therefore, it has been known to weather a low-interest-rate environment better than currency does. U.S. News & World Report notes the “perfect environment” for buying silver is a combination of low interest rates, a declining dollar, strong economic growth, and rising inflation  As inflation rises 1% year over year on average, silver gains 17.4% on average, while gold gains 6.3% on average,” adds U.S. News & World Report. For comparison, The S&P 500 gains on average 2.4% per 1% rise in the Consumer Price Index year over year, so both precious metals provide a greater inflation hedge than stocks.

Unlike paper assets such as stocks and bonds, silver is truly an asset you can feel and hold. The physical nature of silver offers security to an asset holder, and it’s increasingly prized as an industrial metal and for its aesthetics as a metal of beauty. Global silver demand is forecasted to rise by 11% in 2021, notes The Silver Institute.

Globally, silver has been used as currency for centuries. Silver was first used as a currency in 700 B.C., notes The Silver Institute. Under the federal Coinage Act of 1792, the law that created the U.S. Mint, the dollar was tied to silver, not gold. In the early days of the United States, silver coins were the favored currency. The status of silver as currency waned for several decades, but silver coins staged a comeback in the 20th century, and government-issued silver coins remain popular today.