The U.S. Debt Limit in 4 Minutes

Our precious metals specialists are often asked about the U.S. debt limit and what it means for individuals looking to invest in gold. The first step in understanding the debt limit is to review our government’s role in reducing or increasing the amount.

The Debt Limit Explained

The Effects of the Debt Limit

The debt ceiling is a limit set by Congress upon the amount of money the government can borrow for public spending. The debt limit was technically reached on December 31, 2012, however “extraordinary measures” were taken by the Treasury Department to allow spending to continue and claiming to prevent the projected fiscal cliff. Many economists suggest even a brief failure to meet financial obligations could have devastating long-term consequences while others have argued that the market would write it off as a Congressional dispute and return to normal once the crisis was resolved.

What the Debt Limit can mean for Gold values

Our government’s ability to implement a plan that resolves the debt ceiling without “kicking the can” further down the road has caused a state of uncertainty regarding the financial stability of the US economy. If there is one thing our financial market hate, it’s uncertainty. During times of uncertainty, gold and precious metals have traditionally been shown to rise in value.

If you have been considering investing in precious metals, American Bullion specializes in adding gold and silver to retirement accounts. If you have a question about the debt limit or would like to know more about your investment options, please call American Bullion at 1-800-326-9598 to speak with a precious metals specialist and receive our Free Gold Guide.

Additional References: Wikipedia Debt Ceiling, Wikipedia Debt Ceiling Crisis 2013