There can be no doubt that we are living in one of the most financially challenging and dangerous times in our nation’s history. So, forget making money, for just a minute. It used to be that when the stock market got turbulent and Treasury returns were low, there were two common places for people to put their money for “safe keeping.” Those places were “in the bank” and “under your mattress.” But in today’s world, those are no longer even laughingly valid options, because in today’s banking system, any money you put into the bank automatically becomes their first line of defense when trouble strikes and putting it under your mattress is a sure way to lose value, particularly when the Fed feels free to inject $4 trillion into the economy “out of thin air” like they did over a six week period near the end of last year.
According to CNBC, the list of billionaires fleeing cash continues to grow. Already on the list are Jack Dorsey, Alan Howard, Paul Tudor Jones, Bill Pulte, and Peter Theil, just to name a few. Outside of a few stocks legitimately making the best of our bad situation, there is no reason to believe that the minor correction we experienced earlier this year has set the stage for a new bull market, or even a continuing “melt-up,” as some refer to it. One of the few things that fueled the stock market before the correction was the cheap Fed money that public companies were borrowing hand-over-fist, in order to buy back company stock that increased stock prices and enhanced executive bonuses, but left the company financially emaciated and simply stuck in survival mode.
Now, add to this economic maelstrom the fact that both Congress and the Senate are entertaining bills that would replace our printed dollar with a new digital currency. The transition process would most probably unleash a great deal of pent up inflation. No doubt there are a great deal of potential variables, but few, if any of them could benefit the holders of U.S. dollars. Amazingly, these bills are set to make the dollar conversion occur before the end of the year and no one seems to be talking about it. It’s obvious that billionaires aren’t waiting to hear about it on the news and gold’s 20% rise already this year provides a good indication as to where they’re going with their money.
Gold, silver, and other precious metals have been a safe harbor for investors for many thousands of years. Considering the serious lack of potential success with typical investment vehicles, it’s probably a good idea to increase the typical portfolio recommendation of 5% to 15%, possibly even dramatically. In addition to the potential for increased value, precious metals have a long history of universal acceptability, whether you’re in Alaska or Zimbabwe, and in the face of mounting potential inflation, precious metals offer inflation-proof value like few other investment options. Call the precious metal experts at American Bullion for assistance now, at (800) 653-GOLD (4653).
Although the information in this commentary has been obtained from sources believed to be reliable, American Bullion does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. American Bullion will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.