Protecting Clients' Financial Futures

In these uncertain times, protecting your clients' financial futures is more important than ever. With economic challenges making headlines daily, it’s crucial to stay informed and take action.

As we step into July, two major changes have taken effect that could significantly impact your wealth strategy that you have with us. Let’s dive into what they mean for you and how we can navigate them together.

If you’ve ever wanted a front-row seat to fiscal chaos, look no further—this is it.

In May, the House narrowly passed President Trump’s ambitious “Big Beautiful Bill,” a tax-and-spending package that’s set to balloon the federal deficit by $2.8 trillion over the next decade. But the Senate wasn’t content to stop there.

On July 1, the Senate approved its own version of the bill, a move that slashes federal revenues by $4.5 trillion while trimming just $1.2 trillion in spending. The math? A jaw-dropping $3.3 trillion deficit increase—half a trillion more than the House’s already staggering plan.

And that’s before you account for the cost of borrowing. Add it all up, and we’re staring down nearly $4 trillion in new debt this year alone.

With the national debt now hurtling past $37 trillion, it’s clear that fiscal responsibility has been tossed out the window. Both parties, fresh off election victories, have quietly decided that deficits are someone else’s problem.

The result? Trillions in new debt are being rubber-stamped without hesitation, as lawmakers kick the fiscal can further down the road. But the markets aren’t waiting to react.

The U.S. dollar is in freefall, posting its worst start to the year in decades. The Dollar Index (DXY), which tracks the greenback against major global currencies, has plummeted 11% in the first half of 2025—the steepest first-half decline since 1973.

History may not repeat itself, but it often echoes. Let’s examine how gold typically behaves in the years following this kind of dollar performance:

• 1974: +58%
• 1975: +4.5%
• 1976: -22.5%
• 1977: +18.5%
• 1978: +31%
• 1979: +58%
• 1980: +101%

The lesson is simple: When governments treat deficits like an afterthought, currencies suffer—and gold shines.

But here’s where it gets even more interesting. If you want to add more gasoline to the fire, as of July 1, gold and silver have been reclassified as Tier 1 assets. In other words, the banks have effectively made gold and silver money again.

Under new banking regulations, physical gold and silver can now be counted at 100% of its market value toward core capital reserves—a significant shift from the previous rule, where it was marked down by 50% as a Tier 3 asset. This reclassification not only acknowledges gold and silver's role as strategic assets but also positions it as a cornerstone of financial stability.

Banks have already been stockpiling gold and silver to comply with these new regulations, and this shift will likely see gold and silver shortages. For investors, this is a clear signal: gold and silver are no longer just safe havens—they're money and they’re essential.

For those serious about safeguarding their wealth, now is the time to act. Wishful thinking won’t protect your portfolio, but gold and silver just might. Contact my office today so we can discuss what a small allocation in physical gold and silver can do to help mitigate future uncertainty.

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