There’s a dense fog of uncertainty and doubt weighing on the economy as investors lose confidence in traditional financial institutions. A recent report by JP Morgan1 confirms that people are turning to gold to hedge against what experts call an impending “financial collapse.”

Watch this week’s The Gold Spot to hear Scottsdale Bullion & Coin Sr Precious Metals Advisor Steve Rand & Precious Metals Advisor John Karow explain why institutions are recommending people to buy gold, who is already scooping up physical precious metals, and what the future might hold for investors.

JP Morgan Greenlights Gold

Just this week, JP Morgan advised investors to shift away from US stocks in favor of gold. The banking powerhouse pointed to the looming threat of recession, overpriced equities, high interest rates, and low liquidity as inherent risks to mainstream assets. This recommendation is out of the ordinary for JP Morgan which underscores the general lack of confidence in the economy.

Investors Vote Against Washington & Wallstreet

Smart money isn’t waiting around for a top-down solution. Investors are actively searching for safe havens en masse to safeguard their wealth.

“People are starting to vote with their dollars. They’re not happy with Washington…or the banks.”
– Precious Metals Advisor John Karow

Economic instability is only a symptom of the underlying issue: a grossly incompetent government. Our financial elites are gambling with the savings accounts, retirement plans, and investment portfolios of the American people by doubling down on a failed economic policy – the classic definition of insanity.

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Following the Money Trail

It’s always a good idea to watch the decisions of the world’s biggest investors when the economy is going haywire. Over the past few months, experts have been sounding the alarm to warn investors of a potential fallout. Ray Dalio, owner of one of the world’s largest investment firms, recently warned of a “disastrous financial collapse.” Robert Kiyosaki, author of Rich Dad, Poor Dad says that the economy is doomed for a “crash landing”.

Governments around the world clearly agree with these gloomy forecasts as central banks binge on gold at record rates. China and Russia are at the forefront of the charge, but they’re far from the only ones. Recently, the National Bank of Poland gobbled up 15 tons of gold, and the UAE bought billions worth of gold from Russia. Central bank affinity for gold is only expected to continue amid worsening inflation and accelerating de-dollarization.

“Central banks [are buying] more and more gold. Something is bothering them. They’re starting to react to it.”
– Precious Metals Advisor John Karow

Booming Gold Demand Strains Supplies

The surging demand for gold is straining limited supplies as investors across the world fight over a finite amount of physical precious metals. It isn’t just billionaires and central banks making the transition. Retail investors are rushing into gold as distrust and uncertainty mount in traditional markets. Right now, supply levels are at record lows for some gold and silver coins, gold bars and silver bars. Products are still available but waiting times are longer and popular assets are harder to get.

Prepare for a Perfect Economic Storm

A perfect storm of financial mismanagement, banking collapse, and entrenched inflation is casting a massive shadow of doubt over the economy. The calm before the storm is a crucial time for investors to protect against what’s on looming on the horizon. Gold has earned its reputation as a reliable hedge against inflation with millennia of price stability and growth to prove it.

Find out how gold and silver can protect your wealth by requesting your free copy of our insightful Precious Metals Investment Guide.