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.
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.