🇺🇸 In honor of Veteran’s Day 🇺🇸, we’d like to start this week’s Gold Spot with a heartfelt THANK YOU to the brave men and women who have selflessly served to protect the freedoms we enjoy every single day. We’re proud to call many veterans part of the Scottsdale Bullion & Coin community as precious metal advisors, clients, and readers. Your service is greatly appreciated.
A Fizzled Election
Both sides of the political aisle hyped up the mid-terms as a decisive turning point in the future of the country socially, politically, and economically. Needless to say, the election results fell shy of the anticipated excitement. Unfortunately, the same gridlock, partisanship, and political games are poised to plague the functioning of our government for at least the next two years.
Weaker Country, Weaker Currency
There’s a growing fear amongst economists and investors that the lack of clear economic direction and strong fiscal policies in the US put a target on our back as countries like Russia, India, China, and Brazil take aim. The world is starting to rethink just how strong the shiny city on the hill actually is, and these recent elections aren’t helping the situation.
Ever since the US abandoned the gold standard, the value of the greenback has been directly tied to the country’s perceived influence, status, and leadership in the world. A loss of faith in the country as a whole leads to a lack of confidence in the US dollar. This greenback’s status as a reserve currency is the proverbial Achilles heel of US dominance.
The Tax & Spend Strategy Continues
“This [government] is too addicted to tax and spend. They have no fiscal discipline.”– Precious Metals Advisor John Karow
At the halfway point, the Biden administration has already spent trillions of dollars and approved trillions more down the road. To add insult to injury, these unimaginable spending sprees have been followed up by increased taxes. These dismal fiscal policies are a direct result of the failed Modern Monetary Theory Experiment.
Investors were hoping the midterms might balance out the Congress and House to bring some much-needed fiscal sanity. Unfortunately, it looks like the Biden admin will enjoy at least two more years to spend how and where they please which will only lead to more economic uncertainty, raging inflation, and dollar devaluation.
Protect Your Assets
Election night didn’t bring the morning of clarity for which most investors were hoping. It seems nobody wants to stand up, take charge, and responsibly lead the country out of this great political divide and economic turmoil. It’s time to reevaluate your assets to make sure they’re protected for your benefit, not the benefit of the government.
Fortunately, the gold and silver spot prices are resting at relative lows which represents an excellent buying opportunity. Precious metals have a proven track record of hedging against inflation dating back millennia. Request a FREE COPY of our popular Precious Metals Investment Guide to learn more about how you can protect your assets from economic instability.
“The bubble is getting bigger and tighter. At some point, we’re going to have some problems.”– John Karow