It’s not “news” to us that the U.S. dollar is in danger. If you’ve been following our communications you’ll know we’ve been pointing out the signs for years. But unfortunately for America and her citizens, analysts are starting to agree that the danger is finally nearing a fever pitch and the crash will be imminent.
The list of the government’s and Federal Reserve’s poor decisions that led us to this point is long. From printing to spending, our system has run free of its natural checks and balances and has literally not paid for its mistakes.
At the heart of it all, some analysts say, is our “exorbitant privilege” as a country. A term coined by a 1960s French Finance Minister, it means that we have taken advantage of the U.S. dollar’s position as the world’s foremost reserve currency by spending more than we are exporting or saving and relying on loans to cover the difference. In other words: living beyond our means.
With COVID-19 and the economic crisis it caused, spending has soared beyond reach. Even though fear-driven personal savings in America has risen, government spending has outpaced them significantly. And with “stagflation” on the horizon – weak economic growth coupled with inflation – analysts believe the American wallet is doomed.
The American safe, however, still has some promise. If or when the dollar does collapse, gold will rise more than it already has. Those with gold and silver will simply see a wealth transfer from one end of their portfolio to the other.
Gold and silver have functioned as a global store of value for centuries. In a world of fluctuating currencies and digital money, it is the great equalizer. It can function effectively in trade for supplies. It can function effectively as an investment, as many have seen over the last several months. It can function effectively as a hedge against suffering markets, as many saw in the Great Recession. And it can function effectively as protection from the poisoned dollar.
Precious metals have a place in any portfolio because of its reliability as wealth insurance. We have never considered protecting a client’s portfolio an “optional” position to take. Yet we feel more resolved than ever to enable people to protect themselves with gold and silver.
Contact me or any one of my trained staff members to learn more about how to secure your client’s portfolio with precious metals.