Photo credit: FXQuadro via iStock
The Biden Administration just announced a massive 4.65 million barrel contract to purchase oil to replenish the Strategic Petroleum Reserves. The selloff of the reserves back in 2022 was to ease prices at the pump. So get ready for what the buy back will do – send them soaring again. And that, coupled with other factors could unleash another wave of inflation right before elections in November.
In another inflationary signal, banks are starting sell underperforming bonds and accept some realized losses that have been weighing down their balance sheets for a while now. Estimates are about $517 billion in unrealized losses on bank balance sheets, or about 9.4% of securities held. Why are they selling now? For one, they are giving up on these bonds ever performing, but also, they need the cash on hand to take advantage of high interest rates before the Federal Reserve cuts them, maybe as soon as September. So they are making some strategic decisions about lower yield securities to get in on the last opportunities in this high interest rate environment. Another era of easy money (inflation) could be back.
Finally, as Olympians the world over are going for the gold in Paris this week, you can go for the gold in your portfolio – no ankle tape required.
Speaking of going for the gold, catch the Kenny Michaels Go For the Gold Show every Sunday morning at 9am (PST) on AM 870 THE ANSWER! Dive into expert insights on precious metals, market trends, retirement planning, and more.
Listen live at am870theanswer.com or catch up on previous episodes anytime at am870theanswer.com/radioshow/the-gold-show.
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At Reagan Gold Group , we specialize in helping you hedge against these risks by assisting you with the purchase of physical gold and silver. Our experts are ready to provide a FREE custom consultation for you to help you begin the process.
*Views and opinions expressed are those of the authors they are meant for general informational purposes only, and should not be construed or interpreted as a recommendation or solicitation. Reagan Gold Group does not provide investment tax, legal financial planning, estate, planning, or any other personal finance advice. Reagan Gold Group holds no liability for the accuracy, or timeliness of the information provided.
**Note – The Reagan Gold Group is not affiliated with the Reagan Library or the Reagan Foundation in any way. We’re just fans of Ronald Reagan and what he did for American gold ownership as president.
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