Gold for the Alert Investor

Are you awake? Do you know what time it is? Are you paying attention to the geopolitical climate and what is happening in slow motion to our financial systems right in front of our eyes? If YES, then you probably have already picked up some hints that you need gold to defend your hard-earned net worth against what could be coming. In the current global economic climate, buying gold for investment purposes is an increasingly critical move. Individual investors need only look at what central banks are doing. They have been ramping up their gold reserves as part of a broader trend towards de-dollarization. As de-dollarization continues around the globe, the eroding purchasing power of the dollar could devastate your portfolio. Understanding the dynamics behind these moves can provide valuable insights into why savvy investors are flocking to gold more than ever. Here are just a few highlights from today’s headlines to think about –

• The stock market is at all-time highs. Is it in bubble territory? Many analysts are worried it is. Maybe it’s a good time to take some profits while the taking is good?
• Precious metals are also up in record territory! Gold up 22% since October of ’23, SILVER up 29% since October of ’23. This is largely driven by the big guys – central bankers – who see financial things behind the scenes that you don’t. Better pay attention to what they’re doing.
• Debt – the dollar is hopelessly underwater with unsustainable debt, increasing by $1 trillion every 100 days!
• Petrodollar financing is coming to an end – This could be MAJOR – the Saudis just declined to renew the OPEC petrodollar arrangement in which global oil markets were settled in dollars. This has been in place since the Nixon years and expired on June 9, 2024. This could make it increasingly difficult to find buyers for our debt, since dollars will not be critical to participate in energy markets anymore… Uh oh…
• War – and yet we are still spending like crazy on two major proxy wars in Israel and Ukraine. We are also involved in an ongoing conflict in Yemen and looking at a new Cuban missile crisis off our coast, and China is sabre-rattling against Taiwan. How will we fund these efforts? With more debt, likely leading to more inflation here at home.

Any of these powder kegs could go off at any time and constitute a new black swan event, throwing global finances and supply chains into chaos. Are you as prepared as you can possibly be? Doomsday scenarios aside, here are a few more traditional reasons gold makes such a great investment for your portfolio.

1. Tangibility

• Owning physical gold means holding a tangible asset that has been valued for millennia and can’t be printed into oblivion like a fiat currency can.

2. Third-party Risk

• Physical gold is not dependent on any entity’s ability to fulfill contractual obligations, like “paper” assets are. (Yes – gold ETFs are still paper assets.)

3. Balance and Diversification

• Precious metals often move opposite traditional stock and bond markets, providing much needed balance when other assets are down.

Are you ready? In an era marked by economic uncertainty, inflation, and a shift towards de-dollarization, investing a portion of your portfolio in gold can be a wise choice for preserving wealth and achieving financial security. As central banks continue to bolster their gold reserves, individual investors can take a cue from these financial giants and consider adding gold to their portfolios. Reagan Gold Group is a premiere full-service gold and silver dealer and has IRA specialists ready to assist in rollovers or precious metals purchases for home storage. Call us to get started on your gold journey today. Call us to get started on your gold journey today.