President Trump and other congressional leaders are optimistic about the economy’s ability to bounce back quickly as businesses reopen, while others predict a difficult road ahead. So, who is right? And what does that mean for our financial future?
It’s no secret, and no surprise, that the unemployment rate has risen sharply during the COVID-19 pandemic. According to U.S. News, 26 million Americans have filed for unemployment in the last five weeks. Unfortunately, the Congressional Budget Office doesn’t have a positive outlook for many of these Americans. It recently published a series of projections estimating that the unemployment rate will hit 16% in 2020, averaging 11.4% for the year. It also expects the unemployment rate to still be as high as 9.5% at the end of 2021 and labor force participation to fall to 59.8% – the lowest since the 1960s – because many Americans will give up looking for a job.
These unemployment rates are nearly triple what they were in January, before the pandemic, and they are more protracted than we’ve seen. Even the Great Recession only saw one month of unemployment as high as 10%.
Joblessness brings many challenges to our economy and our society, but there is one upside: gold/silver upside.
Due to a number of factors like inflation and the government spending connected to high unemployment rates, gold is projected to reach a trading price of $3,000 per ounce, and silver is expected to follow a similar path.
It’s devastating to lose work and devastating to lose what we’ve been working for – our retirement. Unfortunately, many Americans are at risk of both. Physical gold and silver can’t protect a job but they are proven portfolio protectors. We call them “wealth insurance” because they react inversely to the markets and ensure that when a wealth transfer occurs – as it did in the Great Recession and is likely to occur soon – clients’ financial futures remain intact.
The U.S. economy and job market have dramatically difficult paths ahead while the paths of gold and silver look to be dramatically positive. Contact me to learn more about the connections gold and silver have with unemployment and how they can secure your clients’ portfolios and even provide a significant upside sooner than you may think.