Financial Planning in the Case of a Recession

During times of political tension, economical uncertainties, and ongoing stock market volatility, a recession often crosses the minds of consumers, personal investors, bank leaders, and investment company brokers. While a recession is not a time to celebrate, it is a time to re-evaluate financial planning strategies and investment portfolios. A recession typically happens due to a number of causes and results in several outcomes. Investors use this time prior to a recession to ensure they can count on stable portfolios that will weather the storm.

Financial Planning in the Case of a Recession dollar Financial Planning in the Case of a Recession trustTypical Recession Causes

Typically, the major cause of a recession is tied into inflation, in which the nation experiences a steady rise in the prices of goods and/or services, generally over a period of time. Other recession contributors include hikes in interest rates and wage reductions. The recent worldwide tariff implications and some trickle-down effects are also known to be a factor. In fact, a waning consumer confidence — before there’s even a real issue — is often another critical recession contributor. The media certainly plays a role in the levels of consumer confidence.

Typical Recession Outcomes

Once the country is in a recession, the outcomes generally include a variety of undesirable scenarios. The country experiences a negative economic growth period in which gross domestic product (GDP) falls, a slowdown (or slump) in the stock market, unemployment rising, incomes falling, and as with everything, an increase in our national debt. Interest rates can be cut as a result, and then investors see their asset values as lowered. The average period for a recession is about one-and-a-half years, although historically there have been more extended recession periods – see History of Recessions in the United States. The Great Depression of 1929, for example, lasted 9 years.

Interestingly, all of these scenarios have been in the positive since the 2016 presidential election. So even while the economy, unemployment, and the stock market have been extremely outstanding, economists and the media believe “it’s too good to be true,” and that “a recession is due.” Even in good times, investors, bankers, and the media tend to panic. What to do?

Gold in a Recession

Financial Planning in the Case of a Recession trust

During a period of lowered economic growth, known as a recession, investors seek alternative assets to hedge against in action. Gold is a favorable alternative to the dollar, although the demand for Gold then drives the prices higher. Savvy investors turn to precious metals as a means to withstand the woes of the recession. Fear buying is also a factor, in which some consumers make a gold investment for the wrong reasons, even driving up demand and value. Gold is proving to be a viable source of longer-term returns. It is used to diversify existing investment portfolios in order to ease loss when the market is stressed. According to a Kitco.com article by Jim Wyckoff , entitled Gold, silver gain on safe-haven, technical buying, “Geopolitics is on the front burner of the market place early this week, which is helping to lift the safe- haven metals.” Another positive factor gold is that it has minimal credit risks compared with our current system of at currency. Gold can enhance an investment portfolio most anytime, but especially during a recession.

How Best to Make a Gold Investment

A gold investment is a known safety net during times of market and economical stress. Even the smartest investment banker will tell you not to sell your assets during a recession, but adjusting your financial portfolio to include Gold can be a worthwhile move. Whether you want to invest in physical Gold as a luxury, Gold as an individual retirement account (IRA) or another form of Gold, the advantages can bring peace of mind in the case of a recession. Gold comes in many forms: coins, one-ounce bars, Valcambi bars, IRAs, and more. The rest step in how best to make a gold investment is to speak with a reputable, privately held gold company that specializes in precious metals to learn about your options. Reagan Gold Group has long been a supporter of physical gold investments. Find out more about Gold in order to hedge against in action. Now is a perfect time to engage in some additional financial planning in preparation for a recession.

Learn how a Gold, Silver, & Precious Metals IRA can help you hedge against inflation

The Collapse of Fiat Currency Is Gold’s Moment to Shine.

A dramatic transformation is unfolding in the financial landscape, as gold reclaims its position as the ultimate safe haven. Amid growing economic uncertainty, the U.S. dollar has lost over 40% of its purchasing power compared to gold in just the past year — a staggering decline that signals deepening erosion of confidence in fiat currencies.

Yet, despite this dramatic devaluation, the story has not made the headlines it deserves. This speaks volumes about the growing disconnect between financial reality and public awareness, as gold sees a remarkable 23% increase since the start of 2025, proving its resilience in an increasingly unstable global economy.

In a recent PBS article, reporter Bernard Condon says that economists fear that the recent drop in the dollar is so dramatic that it reflects something more ominous — a loss of confidence in the U.S.

“The safe-haven properties of the dollar are being eroded,” said Deutsche Bank in a note to clients earlier this month, warning of a “confidence crisis.”

Investors Turn to Gold as Fiat Fears Mount

For global investors, the message is clear: the dollar is no longer the unchallenged cornerstone of financial stability. With persistent inflation, record-breaking debt levels, and growing geopolitical uncertainty, many are opting for the tangible security of gold.

“Since 2023, gold’s gone from $1,800 to $3,400 an ounce,” Forbes Media Chairman and editor-in-chief Steve Forbes told Fox Business. “That’s a sure sign we’re going to have a weak dollar ahead, which means, ultimately, turbulence and higher prices in the marketplace. Just look at the 1970s, and we can see where that leads unless something is done about it now. But I don’t see any sign that the authorities have any idea, constructively, of what to do, sadly.”

According to Bank of America’s most recent Global Fund Manager Survey, a net 61% of participants anticipate a decline in the dollar’s value over the next year — the most pessimistic outlook of major investors in almost two decades.

A CNBC article published on April 21 highlights an even more worrying trend. As the U.S. dollar weakens, other central banks may be forced to devalue their own currencies just to stay competitive. This “race to the bottom” in global fiat currencies could ignite even more inflationary pressure worldwide, making gold all the more appealing for investors who want out of this volatile spiral.

Global Currency Devaluation May Be Just Beginning

The exodus from U.S. assets also shines a light on the broader crisis of confidence, with potential spillovers such as higher imported inflation as the dollar weakens. The drop in the U.S. dollar has prompted other currencies to appreciate against it, especially safe havens such as the Swiss franc, Japanese yen, and the euro.

This is no mere market correction or cyclical fluctuation. As Bloomberg Intelligence’s Mike McGlone and many others have noted, we’re in the middle of just the fourth-ever capital rotation event — a strategic shift of investments across asset classes, sectors or regions in response to market conditions, economic cycles, and performance trends. “Gold is now the most expensive ever versus the U.S. long bond market,” he observed, pointing to deep structural issues in the American economy and financial system.

Meanwhile, central banks around the world are bolstering their gold reserves at record rates, a move that signals long-term distrust in the global fiat system.

“Global trust and reliance on the dollar was built up over a half century or more,” University of California, Berkeley, economist Barry Eichengreen told PBS. “But it can be lost in the blink of an eye.”

As the dollar falters, gold is reclaiming its historic role as the foundation of monetary confidence. For investors seeking real, enduring value, the message has never been clearer: the future is golden.
“Gold is clearly seen as the favored safe-haven asset in a world upended by the trade war,” Nitesh Shah, commodities strategist at WisdomTree, told Reuters. “The U.S. dollar has depreciated and U.S. Treasuries are selling off hard, as faith in the U.S. as a reliable trading partner has diminished.”

Read More

Gold Breaks $3,300: Experts Say $4,000 Is Now in Sight

Gold soared past the $3,300 mark on April 16, once again shattering an all-time high as investors and retirees continue to seek safety amid growing global uncertainty. The precious metal climbed more than 6% in the last week and is up over 25% year to date, fueled by escalating U.S.–China trade tensions, a faltering dollar, aggressive central bank buying and recession fears.

“Gold is clearly seen as the favored safe-haven asset in a world upended by the trade war,” Nitesh Shah, commodities strategist at WisdomTree, told Reuters. “The U.S. dollar has depreciated and U.S. Treasuries are selling off hard, as faith in the U.S. as a reliable trading partner has diminished.”

Read More

New Tariffs Crush the Stock Market: Why Gold Is the Safe Haven You Need NOW

The stock market was already beginning to crumble this year under the weight of inflation, economic uncertainty and the threat of global war. But since the latest tariffs went into effect on April 2, the stock market has been dealt yet another devastating blow — while gold continues to stand strong and see record stability.

On April 4, the S&P 500 fell 291 points (5.4%) by the afternoon, while the Dow Jones tumbled 2,150 points (5.3%) and the Nasdaq slid 5.8%. The free-fall carried over from the previous day, when the indexes recorded their biggest one-day drop since 2020, with $2.5 trillion in investor wealth being erased from the S&P 500. The Dow and S&P 500 each sank more than 4%, while the tech-heavy Nasdaq plunged nearly 6%.

Despite these incredibly uncertain times, gold is up nearly 3% over the last month, while the S&P 500 is down over 13%. This stark contrast highlights gold’s resilience as a safe-haven asset when traditional markets falter. As investors scramble for stability, the surge in gold prices continues to underscore its long-standing reputation as a reliable store of value in times of crisis.

The Impact of Trump’s Tariffs on the World

The latest tariff announcements include steep levies on key imports, particularly from China, the European Union and Mexico. In response to Trump imposing 34% tariffs on Chinese goods — which were already subject to a 20% levy — China hit back on April 4 with a 34% tariff on all U.S. products starting on April 10.

This comes after Canadian Prime Minister Mark Carney said that Canada will match Trump’s 25% auto tariffs with a tariff on vehicles imported from the United States.

“We take these measures reluctantly — and we take them in ways that is intended and will cause maximum impact in the United States and minimum impact in Canada,” Carney said.

One of the most concerning aspects of these tariffs is their inflationary impact. Higher import costs will translate to rising prices for goods, squeezing American households already burdened by inflationary pressures. Companies facing higher production costs may either pass expenses onto consumers or cut jobs to maintain profit margins — both scenarios spell trouble for economic stability.

Gold’s Surge Amid Market Chaos

Historically, gold has served as a hedge against economic uncertainty. In today’s uncertain and scary times, that has been rang more true. While equities crumble under the weight of trade tensions, gold has surged by more than 12% since the start of the year, while the S&P 500 has plummeted by over 15%.

Gold’s appeal lies in its independence from government policy and currency devaluation. Unlike fiat money, which can be manipulated through monetary policy, gold maintains intrinsic value, making it a trusted store of wealth in times of crisis. With fears of a prolonged trade war and potential stagflation on the horizon, investors are ditching the uncertainty of stocks and moving their hard-earned capital into tangible assets.

Why Investors Are Turning to Gold

With global instability accelerating, more investors are seeking protection — not speculation. High-risk assets like stocks are increasingly vulnerable to sudden shocks, policy changes, and economic downturns.

While stock traders brace for more volatility, Deutsche Bank, one of the world’s leading financial services providers, is looking beyond the panic — and betting big on gold. The bank just raised its average price forecasts for gold to $3,139 for 2025 and $3,700 for 2026, signaling strong long-term confidence in the precious metal.

“We conclude that the bull case for gold remains strong despite this week’s correction and further upgrade our year-end forecast to $3,350/oz.,” the bank said in a statement on April 7.

This shift reflects a growing recognition: gold isn’t just a hedge, it’s a foundation for financial security. In times like these, where headlines shift hourly and markets react in real time, gold remains a steady and trusted asset.

Read More