“We’re looking at a potential breakout in gold and silver.”— Sr. Precious Metals Advisor Damian White
We’re only a month into 2022, and the economy is off to a rocky start. The stock market has been selling off for three weeks straight, inflation is worsening with each passing day, and there’s talk of the Fed implementing rate hikes throughout the year.
Watch the video below to hear what Sr. Precious Metals Advisor Damian White and Precious Metals Advisor Tim Murphy are saying about the economy’s current volatility and why precious metals might be poised for a breakout.
A Perfect Storm of Bad Market Conditions
The economy is crumbling under the weight of a perfect storm of horrendous conditions. The stock market recently lost over 1,000 points in just a matter of days as investors are becoming increasingly skeptical of its stability. Inflation continues to skyrocket due to out-of-control spending and poor Fed policies. Rate hikes are in the pipeline threatening to worsen inflation yet again, causing even more uncertainty among an already concerned populace. To top it all off, there is a looming threat of war between Russia and Ukraine.
The Fed is Left Without Any Good Choices
Current market conditions are reminiscent of the 1970s when stagflation punished investors. Economic growth is starting to reverse after coming to a screeching halt and inflation continues to drive up living costs. These harsh conditions are putting the Federal Reserve in between the proverbial rock and a hard place. They have no choice but to keep rates as low as possible while continuing to print money. At this point, “it’s inflate or die” according to Precious Metals Advisor Tim Murphy.
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Experts Are Warning of a Potential ‘Superbubble’
Last week, renowned investor Jeremy Grantham warned investors of a potential “superbubble” capable of wiping away a whopping $35 million worth of assets including stocks, commodities, and housing. His scathing letter demonized the fed’s actions and predicted the massive market bubble might have already started imploding. Grantham also advised investors to turn towards gold and silver to protect against worsening inflation.
Buckle Up for 2022: Get Your Gold & Silver
Current market conditions are forecasting a dismal year for the economy. Even the most composed investors are quickly pulling their money out of the stock market and other assets to protect their capital. For over a century, precious metals have proven to offer a reliable hedge against inflation. With the economy threatening to take a precipitous drop, it’s a crucial time to increase your gold and silver reserves or to expose yourself to these assets for the first time.