Concerns surrounding our global economy are currently driving investors and consumers to pursue alternative forms of investment protection. Many find our current monetary system on shaky ground coupled with a national debt that is out of control. New generations of spenders and investors are seeking methods outside that of fiat money to support their financial futures, from decentralized currency options to precious metals.
Central banks are excessively buying gold and silver. The stock markets are fluctuating based on global uncertainties. Our partner trading countries are reacting to new tariffs. The geopolitical landscape is in turmoil. In all of this, there is a clear and consistent message: every facet of our nation and the world is evolving, leading to an economical shift.
An Economical Shift is Taking Place
As the rules, models and processes by which we live and function evolve, savvy investors are well aware of the resulting economical shift. This knowledge is significant for gaining a unique edge in diversification.
As the central banks cut interest rates and thereby increase funds in our monetary system, their actions devalue the purchasing power of currency. Investors then seek out assets that can withstand this type of economical shift.
Seasoned investors that have an upper hand are those with the insight to recognize an economical shift, research history for potential outcomes, and respond in a manner that protects long-term assets — a hedge against inflation so to speak. While the outcomes of notable shifts in past economies are each unique, there are common themes is successful actions by investors.
A Worthy Gold or Silver Investment
While gold is a top choice for many financiers as a worthy investment and currently has increasingly greater value, silver is affordable, on the rise, and an attractive versatile metal. With gold prices rising by well over $250 per ounce to as high as almost $1,500 in just the last year, it is an exciting time for gold investors.
At the same time, silver is a reasonable alternative, currently at only $17+ per ounce. Keep in mind, silver hit almost $50 per ounce in 2012. In fact, Keith Neumeyer, CEO for First Majestic Silver, forecasts silver to rise as high as $130 per ounce. In an article at Investingnews.com, Neumeyer “…believes the current market compares to the year 2000 when investors were sailing high on the dot-com bubble and the mining sector was down.” He believes, “it’s only a matter of time before the market corrects, like it did in 2001 and 2002, and mining sees a big rebound in pricing.”
Reasons To Love Precious Metals
Whether or not high-priced gold or reasonably priced silver figure into your investment portfolio, this period of world uncertainty is the time to consider alternatives to fiat money. Some of the pros in precious metals investments include:
TANGIBILITY. Precious metals in the form of gold, silver and other metals are discernable by the human touch; physical metals that can actually be held, stored, and valued. Tangibility carries significance for investors, and consumers. When you consider that fiat money, stocks, and bonds are all mere paper or promissory notes, subject to depreciation, precious metals in a doubtful economy give peace of mind.
HEDGING. No one can predict the future, but every investor can prepare for inflation. Not every person interested in precious metals investments requires tangible assets. In this case, gold and silver backed IRAs or precious metals reserves may serve as a trusted solution to hedge against inflation. Given the current world vulnerability in our monetary system, every person must have a plan to outlive our impending financial and economical crises.
DEMAND. There is no question that the United States along with many other countries are interested in gold and silver. According to U.S. Global Investors, the United States, Germany, Italy, France, Russia, China and Switzerland are the largest central bank holders of gold. They state, “Beginning in 2010, central banks around the world turned from being net sellers of gold to net buyers of gold. In 2018, official sector activity rose 46 percent to 536 tonnes of purchases – the second highest level of demand this century, according to the GFMS Gold Survey.” In terms of the highest silver reserves, Peru, Poland, Australia, Russia, China, Mexico, Chile, the United States, and Bolivia top the list.
USAGE. Gold is widely known for use in fine jewelry (78%), medicine/dental, medals, aerospace, electronics (3%), and as a hedge against inflation (19%). As well, silver is one of the most indispensable metals. Its conductive and reflective properties make it an excellent source for industrial applications (56%), it is crucial for jewelry and household objects (33%), and it is a popular safe haven investments (11%). Notice this spread between gold and silver as sound investment capital at only 8%.
A Gold or Silver Economy
As a serious investor, family retirement planner, or individual preparing for the future given the nation’s current state of unrest, one thing is certain: we are entering into an economy that could soon favor gold and silver. People are concerned. The world is in an upheaval over so many dilemmas. Times are changing, and there is no time like the present to assess your financial portfolio and recognize our current economical shift. Investor awareness is one of the best assurances followed by a decisive strategy for the future. Reagan Gold Group is guiding people to understand the value in a gold or silver investment along with the options at hand. Take your future into your own hands now while there is a gold supply and silver is priced low.
A gold investment is soon to become one of the main ways in which the State Treasury will accumulate funds! This precious metal is protected against in ation of the US dollar. Consider these facts:
Twenty-one central banks, the majority located in Europe, are part of the Central Bank Gold Agreement (CBGA).
This agreement, formed in 1999, was put in place to “balance” the gold market by coordinating gold sales among the various banks.
Through 1999, gold had primarily been in a bear market for almost two decades, and central banks were consistent sellers during that time. The agreement was designed to control ongoing sales and keep prices from dropping, which would affect the value of each bank’s remaining reserves. As a result, total sales and individual sales today have limits by member countries.
The agreement was renewed three times, in 2004, 2009, and 2014. Each time the contract was rebuilt, the limit on sales became less stringent. The fourth renewal expires on September 26, 2019. Recently, the Central Bank Gold Agreement (CBGA) members decided against renewing the contract because they are no longer selling gold.
For the past eight years, central banks have sold limited amounts of gold, and they continue to do so at these low levels. Central banks are now net buyers of gold. As a matter of fact, since 2007, global gold reserves have risen. In addition, for the past nine months, purchases by central banks have exceeded over 400 tons. This a record-breaking!
To summarize, gold is now elevated by the central banks from a tier three asset to a tier one asset, which means ZERO risks! As well, there were changes in the Basel III international banking regulations that took place on March 29, 2019. The Bank of International Settlement (BIS) now recognizes central bank gold holdings as a reserve asset equivalent to cash. Before this, gold was considered a tier three asset, which meant its value was reduced by 50%.
Now that central banks are net buyers, this continues a domino effect on other countries like China and Russia, for example. They both now possess an unrelenting incentive to buy gold—Russia for managing ongoing sanctions, and China for dealing with the current trade and currency wars. Regardless of their reasons to buy gold, the net effect is still the same: they see gold as a currency diversifier and protector and continue to load up. Combined, Russia and China own 134.16 million ounces of gold (Russia accounts for 20% of gold reserves while China accounts for 3%).
Current Economic Signs Driving the Demand for Precious Metals
There are a number of recent economic signs that may be easily overlooked in the midst favorable unemployment numbers, increased consumer spending, and success by the government in a number of political goals. Consumers and investors would do well to consider early precious metals investing given some clear economic warning signs:
• Bond Investors. Bond investors are capitalizing on short-term yield, which produces an inverted yield curve. Historically, this indicates a potential recession.
• America-Based Production. While great strides are being taken to return outsourced jobs back into the US, the purchasing managers index (PMI) is on the fence. The US saw only a .4% growth rate in July and undergrowth in August, another sign of recession.
• Corporate Revenue Forecasts O . Analysts had forecasted corporate earnings to increase in the 10% range while they are now revised to only a 2-3% increase due to recent trade wars and concerns in the global economy.
GDP Growth Slowdown. While 2019 has shown record growth, a more recent slump shows a GDP growth slowdown. The last period
of record GDP growth was in July 2018 (see tradingeconomics.com).
Stock Market Fluctuations. The stock market has shown radical ups and downs since late last year, and continuing corrections may or may not be a cause for worry.
National Debt On the Rise. The national debt continues to rise (recently as much as 2%, or $450 billion, in one month). This ever-increasing national debt in turn prompts the government to respond with actions (such as printing money or borrowing in the neighborhood of $814 billion before the end of the year) that place the US economy at even greater risk. By comparison, gold and silver mine supply this year is only $180 billion.
More Thoughts on Precious Metals
Historically, investors and consumers alike have found gold and silver the most valuable of the metals. You may be asking yourself why you would want to own a small piece of the precious metals pie. Below are more reasons why to invest in precious metals now:
Currency today is not always stable, and our own government is at times responsible
Precious metals are objective in terms of value while the US dollar is subjective
Inflation is inevitable at one period or another
The nation’s huge deficits will likely be monetized
The rarity of precious metals is high while the almighty dollar is printed at will
Precious metals have historically shown great economic value
Gold this year is hitting ve-year highs
In addition to these points, the most common reasons cited for purchasing precious metals are: 1) hedge against inflation, 2) make an investment that can be easily sold when prices go up, 3) insurance for your financial portfolio, and 4) diversify your financial portfolio to include valuable and tangible precious metal. This bulleted list offers at least seven more reasons to diversify!
Hedge, invest, diversify, or insure? There are many solid reasons to rethink your existing nancial mix, and it may be time to do the unexpected. Consider these thoughts on a precious metals investment:
• Protect the assets you’ve made
• Look at today’s prices as an incentive
• Consider a more tangible asset
• Find a loyal precious metals business to help you make the best decisions
• Follow your heart on the matter to insure your assets
Precious Metals Investment Options
There are a number of attractive options to choose from once you decide to diversify with precious metals, and now is a great time to consider them. Become a central bank for yourself and your family. The central banks have abandoned coordinated gold sales because they now see gold as a tier one asset. This transitions to aggressive buyers of the commodity, which in return represents today’s prices and continues to grow as a long-term e ect. Be your own central bank and prepare for what might be heading our way.
Today’s economy is driving consumers and investors with a new take on precious metals. Contact the Reagan Gold Group for an honest discussion about your options.
Today, we are experiencing a period in time when the word “survival” is on the minds of many Americans. People are concerned about surviving the economy and the geopolitical landscape, surviving fluctuations in the stock market, and avoiding various threats of war and genocide. With the topic of survival heavy on so many minds, it’s a time when personal and professional investors re-evaluate their financial portfolios with the hope of remaining unaffected by such tragedies. Silver is a financial solution many are considering.
Why Do We Love Silver?
First and foremost, silver is currently affordable. At a fraction of the cost of gold per ounce, silver is available at a cost the industry may never see again. Not only that, silver is a highly applicable metal that is used in so many industries: jewelry, home goods and decor, dental and medical fields, and high-tech in terms of its incredible electrical properties. Silver is not only reflective but it is also thermally and electronically conducive, antimicrobial and non-toxic.
Even while other metals are becoming popular for varying applications, pure silver is generally known to be nearly the best conductor of electricity and heat. Given its popularity among industries, collectors, and investors, it is quite surprising the price is still equitable and the supply is abundant. Studies indicate silver is in fact more rare above the ground than gold and yet more abundant below ground.
Silver as a Survival Investment
Silver is a reasonable and desirable metal that is often sought after when consumers and investors alike have financial survival on their minds. Silver in the form of coinage such as the American Silver Eagle is a precious metal that offers a fluctuating value. Because of this, when any type of crisis is expected, many people see precious metals such as silver as safe survivalist investments.
According to an article entitled Investing in Silver: Four Ways to Invest and Why, by Eric Reed, from TheStreet.com, “Compared with stocks and paper investments…silver is still generally seen as a safe haven for investment during market instability. Despite its volatility, investors will often move their money into precious metals at the beginning of a downturn.” Reed sees silver as “more liquid” in terms of a safe investment. It’s a matter of timing in order to sell silver at the right price.
While gold is historically a survivalist metal, the fact that silver is so obtainable makes it an attractive alternative for taking investors through periods of financial uncertainties.
A Silver Hedge Against Inflation
While both consumers and financiers rely on a variety of methods to survive during a period economical and political adversity, they must also count on some insurance as a hedge against inflation. This is where silver is making its mark. A silver hedge against inflation today is a reasonable investment that can be made for under $10,000 while a gold hedge against inflation today will cost so much more, given the rising prices of gold. One-ounce silver rounds or a combination of silver in other forms is certain to increase in price,
following the recent trends in gold. Take a look at the recent gold to silver ratio fluctuations over the course of only a few months. The gold-tosilver ratio refers to the ounces of silver it takes to purchase an ounce of gold — recently as high as 91 to 1, currently 81 to 1, with ranges between 16 to 1 and 30 to 1. For the first time in two years, silver has surged above $18 per ounce!
It is interesting to note that gold is making news as a prime investment and hedge against inflation by the central banks and many eager buyers even while there is generally a greater supply of silver and it has high-demand for so many applications. In either case, precious metals have a reputation among many as a sound investment solution in both good and bad economies. When a downturn due to inflation is imminent, it is a critical time to consider a reasonably-priced silver investment as a hedge against inflation.
The Best Way To Invest in Silver
If you make a strategic choice to invest in silver as a long-term means of survival, you must work with a reputable and trusted silver dealer like Reagan Gold Group. Whether you want to set up your investment in silver coins, silver bullion, or and silver-backed IRA, this group can offer the advice and counseling to help you with financial “survival” options to prepare for a time of crisis. Seek guidance today, and buy silver while the prices are still amazingly affordable and it’s still the world’s bestkept secret. Make survival with silver a priority for your retirement and for the inheritance you plan to provide your loved ones.
The Reagan Gold Group is a privately-held company based in Los Angeles that supports clients interested in diversifying their portfolio by acquiring physical gold and silver coins, or by adding physical gold and silver to an existing IRA account.