All Signals Green: Why Now Is the Prime Time to Invest in Physical Gold and Silver

While the talking heads try to convince the American public that the economy is firing on all cylinders, smart investors are taking their financial fate into their own hands. Instead of tossing their hard-earned dollars on top of an inflated stock market, they’re diversifying with gold and silver.

In this week’s The Gold Spot, Scottsdale Bullion & Coin Sr. Precious Metals Advisor Damian White and Precious Metals Advisor Todd Graf explain why investors are strategically reallocating some of their portfolio and why NOW is an opportune time to buy physical gold and silver.

Approach the Stock Market with Caution

The stock market has never been a reliable indicator of the health of the broader economy, especially for everyday Americans. That’s why the recent highs across stock indices aren’t shaking any concerns investors have about the economy. Recent Gallup surveys reveal that 74% of people don’t have a positive view of the economy. With a historically low approval rating of 38%, the Biden administration’s incompetence isn’t generating much hope for a turnaround.

The US economy still faces a series of obstacles such as stubborn inflation, record levels of personal debt, and a looming US debt crisis. As the wealth gap expands, the middle class is getting crushed. The rich keep getting richer, and the poor keep getting poorer. For perspective, the average American is currently spending 11% of their disposable income on food which is at its highest point in decades.

Time to Reallocate Investments?

In light of the underlying economic risks, many investors are taking profits while the stock market is surging. They’re preemptively reallocating their wealth to more stable assets such as precious metals in anticipation of an economic downturn or full-blown recession.

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Things look good on the surface right now, but…things can go south very quickly.

–Precious Metals Advisor Todd Graf

Gold Demand vs Gold Prices

Over the past four to five years, there’s been a widespread shift away from paper assets and into gold bars and coins. This considerable surge in precious metals demand was sparked by the pandemic and maintained by a gauntlet of economic and geological challenges including bank collapses, hot wars, ongoing inflation, and the southern border crisis.

Every time there’s a boom in gold buying, gold prices and premiums reach relative highs. The friction between heightened demand and dwindling supplies forces precious metals and coin dealers to increase their premiums as it costs more to locate and source physical metal assets. As a result, buying into surging demand isn’t ideal.

A Short-Term Buying Opportunity

Interestingly, while central banks continue to buy up gold bullion at record rates, there’s been a lull in retail investor gold demand as investors are distracted by a booming stock market and the siren calls of politicians promising a full economic recovery. This is a welcomed opportunity for investors looking to accumulate more physical gold at relatively low prices before the next rush into precious metals.

“Right now...is the opportune time to be buying precious metals. Prices are relatively stable...and...premiums have compressed to levels we haven't seen in years.”

Damian White

Sr. Precious Metals Advisor

Of course, this buying window is going to close soon as more investors wake up to the growing risk of traditional assets. Time is of the essence.

Don’t Wait to Buy Gold, Buy Gold and Wait

Gold has remained the most effective and proven insurance policy for your wealth. Everyone can see and feel the economic turmoil. Forward-thinking investors are taking advantage of the surging stock market to take profits and shift into precious metals to hedge against the incoming flood of economic pressures.

Waiting around until the economy turns south will result in higher costs and higher premiums as gold and silver prices inevitably rise. Right now, we’re in the calm before the economic storm. It’s an ideal time to start accumulating or adding to your stockpiles.