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In uncertain economic times, the quest for a secure investment remains at the forefront of every smart investor's mind. Today, we're unraveling a truth that has stood the test of time—gold isn't just a precious metal—it's real money!
With the financial landscape evolving rapidly and we are moving towards a Digital Dollar (CBDC) and a likely stock market correction, the call to invest in gold and silver is louder than ever.
Who should be reading this? If you're a savvy investor, a consumer looking ahead, or you’re reaching toward a comfortable retirement, this article is your siren song toward true financial security.
Traditional Currencies Are Losing Their Buying Power
To understand why gold and silver are your best bet for preserving wealth, it's important to grasp the current financial market's condition. With volatile stock performances, inflation concerns, a looming recession, and unpredictable government policies across the globe, traditional investment vehicles are no longer as secure as they once were.
Traditional currencies are losing their buying power, a worrying trend that cannot be ignored. To give you an example, since 1913, the US dollar has lost 97% of its value while one of the most secure assets - gold has gained over 8,000%. It’s this long-term increase and preservation of purchasing power that gives gold such appeal as an inflation hedge.
What is also threatening the US dollar is the fact that the BRICS nations (Brazil, Russia, India, China, and South Africa) are developing a new currency that will rival the US dollar as the global reserve standard. Many countries are seeking greater independence from the US financial system. For instance, during the 2022 BRICS summit, Russian President Vladimir Putin announced that the bloc was working to create an “international reserve currency”.
Not to mention the fact that central banks are still stocking up on gold. Online gold trading platform, BullionVault, suggests that central bank gold buying has risen by more than one-half by weight over the past 3 years compared with the previous 12 calendar quarters. Only in January, central banks added 39 tonnes (t) to global gold reserves.
According to the World Gold Council, Turkey and China again led the charge among buyers, while significant sales were virtually non-existent.
“China may be buying gold to reduce its exposure to US Dollars and, consequently, to the possibility of sanctions,” says Michael Pettis, professor of finance at Guanghua School of Management at Peking University in Beijing.
Smart investors should consider echoing central banks' gold buying spree. As geopolitical tensions rise and currency wars loom, gold’s non-correlative nature to other assets becomes incredibly valuable. It doesn’t move with market trends or react to interest rate decisions, making it a powerful tool for preserving wealth.
Something even more threatening to Americans' wealth and freedom is the digital dollar that is planning to replace paper currency, so let's take a look at that.
What Is the Central Bank Digital Currency (CBDC)?
The Central Bank Digital Currency or Digital Dollar is an electronic form of central bank money that citizens can use for daily transactions. The CBDC would involve a handful of large banks, such as the Bank of America, working alongside the Federal Reserve to closely regulate the money supply flow up to the tiniest fraction.
Many countries are developing this new-age currency as a potential monetary policy tool, ready to be tracked and controlled within a new financial infrastructure known as FedNow. While modernization sounds appealing, there are questions and uncertainties about privacy, control, and the intrinsic value of such digital constructs. The Fed would possess the knowledge on where exactly the money goes, and when it does.
Donald Trump, in his New Hampshire speech, likened the creation of a central bank digital currency to a form of “government tyranny,” warning it would give the federal government the ability to “take your money.”
How the CBDC Will Make Your Money Worthless
Convenience may come at a price. With the digitization of the economy, including the rolling out of the Digital Dollar, the essence of privately owned, valuable currency might vanish.
Imagine a world where there are:
Worst of all, everything you purchase would be trackable! The CBDC threatens:
CBDCs draw power away from physical money, rendering your dollars—or any fiat currency—vulnerable to depreciation and control. This is because, unlike gold, digital currencies have no intrinsic value and are susceptible to overproduction and mismanagement.
Why Gold Is the Only Real Money
Gold has maintained its value throughout millennia, embodying stability and security. It isn't just speculation from believers like the Chief Economist & Global Strategist, Peter Schiff, but a fact supported by historical evidence and intrinsic properties.
Mr Schiff means, “Gold has intrinsic value. The problem with the dollar is it has no intrinsic value. And if the Federal Reserve is going to spend trillions of them to buy up all these bad mortgages and all other kinds of bad debt, the dollar is going to lose all of its value. Gold will store its value, and you'll always be able to buy more food with your gold.”
Additionally, gold is real money because it's durable, divisible, consistent, convenient, and holds intrinsic value. According to the World Gold Council, gold's value as a preserver of wealth and hedge against systemic risk rises during times of economic distress.
5 Reasons Why You Need to Buy Gold NOW!
You should consider buying the yellow metal now to secure your wealth and future before the CBDC possibly replaces paper money and markets get too volatile. You need an asset that can't go away with the click of a button. How can gold offer you protection?
1. Gold Is a Tangible Asset - Real Money
For one, gold is a physical asset— real money that can never go to $0. It’s an asset you can hold in your hand and trade for goods. Furthermore, gold demand tends to grow when an economic crisis threatens. Smart investors know that it can serve as financial insurance in times of economic volatility.
2. Enhanced Portfolio Diversification
Adding gold and other precious metals to your portfolio substantially widens the breadth of your asset allocation. The intrinsic value of precious metals typically exhibits an inverse correlation with traditional equities and fixed-income securities, offering a potential counterbalance to the latter's market movements and fortifying portfolio robustness amidst macroeconomic flux conditions.
3. Inflation Hedging Mechanisms
Throughout fiscal history, precious metals have consistently demonstrated their resiliency in preserving purchasing capacity across elongated temporal spans, thus serving as robust deflationary safeguards. The strategic transference of a segment of, for example, your 401(k) into bullion holdings like gold or silver anchors your investments in tangible assets that have perennially functioned as reliable bastions of wealth.
4. Volatility Mitigation
The historic track record for precious metals such as gold and silver shows a general trend of minimal price turbulence, particularly when juxtaposed against the broader securities market. Introducing these stable commodities into your retirement-focused investment mix attenuates aggregate portfolio fluctuations, culminating in a more consistent growth trajectory as you steer closer to your retirement horizon.
5. Wealth Growth
As mentioned, gold can be an excellent inflation hedge that provides financial insurance and protection in tough times. But it can also offer you portfolio growth even in good times. History proves that even when the economy is doing well and the markets are booming, gold can gain in value.
Since 2001 gold’s average annualized growth rate is 8.8%, vs 5.1% for the S&P 500 and 5.0% for the Dow Jones Industria Average. And looking at the gold price history for the last 10 years, gold has increased by 79.33%. Not many paper assets have that kind of long-term growth.
Gold Price Hitting Record Highs
But how does the future look for gold? 2024 has been a great year for gold so far. Gold keeps hitting record highs and has already been breaking the 2,400 mark. According to Coin Price Forecast, the gold price would hit $2200 by the middle of 2024 (gold broke the $2,200 mark already in March) and is expected to move up to $2,700 by the end of 2026, which I personally believe is underestimated.
Looking at a longer time frame, gold is expected to rise to:
How to Secure Your Wealth With Gold in 2024
Investing in gold is a tried-and-tested method of safeguarding purchasing power. Gold is a tangible asset that you can hold in your hand, unlike cryptocurrency or stocks. It doesn't corrode, and most importantly, cannot be manufactured on a whim.
In other words, there's no time like the present to secure your wealth by buying gold and other precious metals. But how do you start?
1. Purchase Physical Bullion
You can buy gold coins, gold bars, and other precious metals from reputable gold dealers. Holding physical gold bars and gold coins provides the ultimate control and insurance for your wealth against a financial crisis in an underperforming economy.
“Gold is money. Everything else is credit” – J.P. Morgan
2. Open a Gold IRA
Investing in a gold IRA, also called a precious metals IRA, is a method that is becoming more and more popular. With a gold IRA, you get to own physical gold bullion or other precious metals, while still enjoying the same tax advantages as a conventional IRA. When it comes time to take a distribution, you can choose to either receive cash or take possession of your gold coins or bars completely tax and penalty-free.
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For more details, request this FREE Gold IRA Guide and learn everything you need to know about adding precious metals to an IRA.
3. Invest Gold ETFs
For those favoring a more hands-off approach, you can invest in a gold Exchange-traded Fund (ETF). However, be aware that similar to the banking crisis, ETF companies are vulnerable, unpredictable, and controlled outside your hands.
4. Gold Mining Stocks
If you're game for more risk, consider shares in gold mining companies. Keep in mind that gold stocks do not necessarily move in concert with bullion prices since mining companies succeed or fail based on their individual operating performance.
Top-Rated Precious Metals Companies
To ease your entry into gold investment, we've compiled a list of top-rated precious metals companies. From Goldco to Birch Gold Group, and Augusta Precious Metals, these firms have a solid reputation, offering various gold investment formats including bullion, premium coins, and bars.
These companies are carefully reviewed and vetted on a variety of factors including BBB/BCA ratings and complaints, customer reviews, annual fees, precious metals selection, storage options, promotions, and buy-back programs:
Choosing any of these industry-leading precious metals companies will ensure a safe investment. Lastly, when it's time to liquidate your metals, they all offer buy-back programs.
Gold Is the Only Real Money: FAQ
Should I invest in physical gold, gold ETFs, or gold mining stocks?
When considering the intricacies of gold as an asset class, investors should be acutely aware of the inherent risks associated with indirect investment vehicles. Products such as gold ETFs, equities in gold mining companies, and gold-focused funds place capital under the auspices of external entities. Consequently, your investments are intertwined with the operational performance and fiscal health of these third-party organizations, a contrast to the autonomy afforded by possessing physical gold.
Owning tangible gold confers the investor's direct command over their asset, circumventing the counterparty risk found in paper gold instruments. It acts as both a bulwark against systemic financial disruptions and as a hedge in one's investment portfolio.
Is it safe to invest in gold and other precious metals?
Just like other investments, there are certain risks associated with investing in precious metals. Although, they are typically considered safe haven assets and are a valuable part of a diversified portfolio.
How much should I invest in precious metals?
The specific amount depends on your risk tolerance and circ*mstances. Some people do well with as much as 10% of their investments in precious metals while others may do better with as little as 1-5%.
Note: Any gold company that tells you to invest more than 10% of your total portfolio does not have your best interest in mind, and you should continue looking for a reputable gold dealer.
What is a gold IRA?
A gold IRA is a self-directed Individual Retirement Account (IRA) that is specifically designed to contain gold, silver, and other precious metals. You can make pre-tax contributions to this specialized IRA, and your investment earnings will accumulate tax-deferred just like a traditional IRA.
Unlike a traditional IRA, which typically holds stocks, bonds, and mutual funds, a gold IRA is self-directed and can also hold tangible assets in the form of gold, silver, platinum, and palladium.
Why invest in a gold IRA?
Opening up a gold IRA account has many benefits, and can, for example, help you:
As Trevor Gertz puts it, “Precious metals should not be seen as an investment, but as financial insurance.”
What are the benefits of adding precious metals to an IRA?
There are four main reasons to invest in a precious metals IRA:
#1 Wealth Protection
#2 Hedge Against Inflation
#3 Diversify Your Portfolio
#4 Tax-Free Growth With a Precious Metals IRA
To learn more about what these four reasons entail, watch this video on 4 secrets to safeguarding your savings with precious metals in 2024:
Are there any tax benefits to a gold IRA?
Yes, the same tax benefits that apply to Traditional IRAs also apply to gold IRAs, such as tax-deferred growth and potential tax-free withdrawals in retirement. For more information, you can request this >>> Free Gold IRA Guide that will explain this secret IRS loophole.
Is everyone eligible for a precious metals IRA?
Yes, anyone who has earned income qualifies to open a precious metals IRA. It’s a great option for anyone with earned income looking to secure their financial future.
Where should I store my precious metals?
For non-IRA purchases, you can store your metals in a safe deposit box or vault. In these cases, make sure to insure your gold. You can do this easily with your homeowner’s insurance policy to provide coverage in the event of a loss.
You can also store your gold with the gold dealer you bought it from. For example, Goldco charges $0 for storage for non-IRA transactions. IRA metals have to be stored at an IRS-approved depository like the Delaware Depository.
Conclusion
In conclusion, gold is not subject to the whims of government policies or digital depreciation—it is the only real money. The arguments for it are backed by experts like former President Donald Trump and reflected in the historical archives of economies around the world. Amidst a sea of tumultuous options, choosing gold could be the lighthouse guiding your wealth to safety.
This is not a financial advice article. Refer to a professional for financial advice.
