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Precious Metal Prices Up Amid Inflation and a Devalued US Dollar

If there is any good news about today’s weakened economy and the continually decreasing value of the dollar, it is the excitement around precious metals as a secure hedge against inflation. During periods of national unrest, it is no secret that investors and family leaders alike turn to alternative assets. Paper assets are known to fluctuate during such times, while precious metals tend to hold their value. Before investors make changes to their financial portfolios, it’s important to figure out what is going on and why.

What is Happening to the US Dollar?

Various news sources have indicated the US dollar is in a serious decline and possibly losing its long-terms status as a primary worldwide currency. There are discussions by a number of counties’ leaders about moving away from the US dollar in terms of global trading and investing. China is at the forefront, suggesting the yuan for commodity trading and they are siding with Iran, Saudi Arabia, and a number of other countries in possibly shifting from the US dollar. In a recent US Bank article entitled What does the fluctuating value of the U.S. dollar mean for investors?, three key points were made that contribute to the news of a weakening US dollar:

  • In mid-2022, the US dollar’s value reached parity [had matching values] with the euro for the first time in 20 years.
  • The dollar’s strength has gradually eroded since that time but remains only marginally weaker than the euro.
  • Changes in the dollar’s value compared to other currencies affects results for US investors who put money to work in global capital markets.

The bank predicts a “long, slow recovery” for the US dollar. When the dollar is devalued, paper assets such as stocks, bonds and real estate tend to fall as well. When the dollar is weakened, foreign investors and the central banks buy gold for less money as demand increases. This is a time when US investors should purchase gold and silver before soaring prices set in!

Price of Precious Metals Going Up

As the dollar continues to devalue, the recent spike in the price of gold to over $2,000 an ounce, is convincing investors to buy. Gold futures were recently at an 8-month high, having climbed 14% since last November. With the Fed finally curbing rate hikes, analysts expect consumer prices to come down and the demand for gold to go up. As China continues toward their goal of becoming a world leader and the dollar continues to declines, foreign adversaries are thrilled to buy gold for less even as the price of gold increases.

Safe-Haven Precious Metals

A safe haven in terms of investing is defined by James Chen of Investopedia as, “…a type of investment that is expected to retain or increase in value during times of market turbulence.” Chen believes, “Investors seek out safe havens in order to limit their exposure to losses in the event of market downturns.” Safe havens in such a time as this often refers to precious metals, although some investors find safe havens in other currencies or real estate, etc. When stocks and other paper assets are down, demand along with the price of precious metals (as a safe haven) rises—gold and silver are proven as assets that typically hold value (unlike the dollar).

There are a variety of ways to invest in precious metals including: 1) gold and silver bars (or bullion), by the ounce or the gram, 2) gold and silver coins such as the American Gold Eagle, valuable and collectible), and 3) a gold- or silver-backed individual retirement accounts (IRA). A gold- or silver-backed IRA requires a legitimate IRA custodian that facilitates the purchase and partners with an approved depository to store precious metals.

Actions To Take During Times of Turmoil

There is no question that times of turmoil present concerns for every American. There are some critical actions most people can take to protect assets of every kind and also gain some peace of mind:

  • Review of asset mix to ensure investments align with current times and family needs
  • Find a local, secure and trusted bank
  • Engage with a known commodities specialist to help with a purchase of precious metals
  • Make a 10-20% investment in precious metals or a gold- or silver-backed IRA
  • Have some assets on hand in your home safe (as a barter or to sell)
  • Consider the purity, weight, and manufacturer for any precious metals purchase; these items are stamped on the metal
  • Work with a reputable custodian that has a track record

The first step in making modification to any financial portfolio involves finding a trusted custodian that can lead the process and answer questions in acquiring precious metals the right way.

Contact A Reputable Custodian

If you are ready to invest in precious metals as a hedge against today’s inflation and amidst a future of nationwide unknowns, now is the best time to contact a reputable custodian like Reagan Gold Group (RGG) to diversify your portfolio mix. Given that gold appreciated nearly 36% over five years and the total return on the S&P 500 was 60%, it is worth looking at. Silver, while much more affordable, is going up as well. It is the perfect choice for investors that need to start with a lower-cost precious metal. Contact RGG today and find out what investment options you have while there’s still time to hedge against inflation. RGG commodity specialists are standing by.

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

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