“We know something big’s getting ready to happen. It’s a matter of when, not if. That’s what’s driving people to protect their money more than ever.”— Steve Rand, Scottsdale Bullion & Coin Precious Metals Advisor
We’ve noticed an uptick in investors not only opening gold IRA accounts lately, but more investors coming back into the office over and over again to add to their savings of physical gold and silver.
Any kind of trend like that is something to pay attention to.
Scottsdale Bullion & Coin IRA Liaison Michelle Ellis and Senior Advisor Steve Rand join in conversation to discuss why more investors are drawn to physical precious metals right now.
What Are Investors Afraid of?
It’s obvious: investors are being very cautious and careful with their wealth and savings at this time. We are seeing more money moving into a gold backed IRA — as if there is a collective understanding that an impending crash could plummet stock markets in the near future.
Sometimes it’s actually smart to follow the herd, especially when the herd is moving away from the direction of danger. It’s as if investors are preparing for the worst in the second half of 2021. There are plenty of reasons why investors are on the defensive right now.
Is Palantir’s Investment in Gold a Sign that Something Big Is Coming?
Last month, the giant tech company Palantir bought $50.7 million in gold bars. This is a hugely unusual move for a tech company, to say the least. “You have to be prepared for a future with more black swan events,” COO Shyam Sankar remarked to Bloomberg in August.
It makes us wonder: What do they know that we don’t know? Does Palantir have inside information from government intelligence agencies like the CIA and NSA? What sparked this gold buying spree?
While the answers might be shrouded in secrecy, the sheer fact that a huge tech company bought millions of dollars’ worth of physical gold bars could be an indicator that some other economic, financial, or public crisis is brewing underneath the surface.
Especially after the past few years of global pandemic, social unrest, and political uncertainties, no one wants to be blindsided. What you don’t know could actually hurt you. So what else is headed our way?
Inflation Is Rising Alongside Government Stimulus
We have to wonder: Is the economy “overheating” with President Biden’s stimulus plans? Inflation is certainly rising, and we’ve seen a great deal of concern over this from our clients. We’ve noticed a 300% increase in gold IRA activity in the past few weeks.
As Will Rogers said, “I’m not so much interested in the return ON my money as I am in the return OF my money.” This seems to be the dominant attitude of gold investors right now. Our clients are expressing higher values for their wealth management, showing intense focus on wealth protection at this time.
In other words, we are seeing more and more people establishing a safety net in gold.
Precious Metals Provides a Safety Net
Big tech, central banks, and individual investors are increasingly storing their wealth in gold, as if there could be another black swan event in the latter half of this year.
The Goldman Sachs’ 2021 price forecast for gold for late 2021 is $2,000/oz for gold and $30/silver.
There’s a reason why precious metals investing is a smart strategy to enjoy greater security in the face of unpredictable world events.
If you’re ready to learn about how to protect your wealth with a gold retirement plan, learn all about how they work with our Precious Metals IRA guide.