“Silver is going to explode and so will gold.”– Precious Metals Advisor Tim Murphy
Economic history might not repeat itself, but it definitely rhymes. Right now, savvy investors are hearing echoes of the recent past as the market is calm on the surface but chaotic underneath. A slew of market pressures is converging to further upend an already struggling economy, and a small window of opportunity is opening for those who are paying attention.
Watch this week’s The Gold Spot to hear Scottsdale Bullion & Coin Precious Metals Advisors Joe Elkjer & Tim Murphy explain why complacency is rampant despite obvious risks, why it’s an ideal time to buy gold and silver, and how you can prepare for the rough ride ahead.
The Cycle of Fear, Distraction, & Complacency
A few weeks ago, we urged people to overcome investor summer complacency because of the lingering presence of economic threats. In reality, that false sense of calm isn’t a new risk. For decades, there’s been a never-ending cycle of fear, distraction, and complacency. People panic when the economy buckles, our financial czars claim to solve the issue, and investors get tricked into thinking everything’s a-okay…until the next economic blunder.
This cycle is perpetuated by the Fed’s reckless fiscal policies that prevent the economy from ever truly recovering. The constant spending and printing yield more debt, more inflation, and more dollar devaluation. The artificially low interest rates create vulnerabilities in the banking sector and other foundational elements of the economy. These poor decisions always have consequences, even if they’re not immediately evident.
The Illusion of Calm Waters
The 2008 financial meltdown is the first major economic failure that comes to mind for investors, but the economy has faced several bouts of volatility and uncertainty since then. In the last few years alone, the US has entered costly trade wars with several foreign countries, most notably China. The pandemic triggered trillions of dollars worth of spending, plunging us further into debt. Regional banks are falling like dominos, threatening an entire banking system collapse. As we mentioned on last week’s The Gold Spot, some analysts are claiming over 300 banks could fail.
All of these seemingly independent economic downturns preceded the same cycle of fear, distraction, and complacency. It’s the same old story: Investors pull out of traditional assets when the market rattles, start the transition to hard assets, and eventually assume everything is back to normal. At some point, investors need to realize that these economic challenges aren’t isolated events. They’re indicative of a seriously flawed system with an unstable foundation.
Precious Investment Opportunities
So many people fall victim to this predictable cycle that their actions create unique buying opportunities for those investors who are watching closely. While the vast majority of the country relaxes in a false state of security, smart money investors are scooping up physical gold and silver. Gold and silver prices are bound to move higher soon as demand skyrockets and traditional markets rapidly deteriorate.
Central banks have been buying up gold in record amounts over the past few years to protect their countries from the ongoing economic storm. However, even the most highly sought-after precious metal is impacted by market complacency. Just recently, gold prices slumped down to 6% below May highs. Still, many experts have a healthy gold price forecast for 2023. Even Bloomberg Intelligence predicts a move toward $3,000 an ounce!
Gold demand might be stealing the headlines, but silver prices are setting up for a massive surge too. After more than a decade, the equilibrium between silver supply and demand was shattered in 2021 as investors scooped up as much as possible. Silver buying outpaced demand through 2022, and the imbalance is only expected to increase this year. The growing silver shortage in 2023 is leading to impressive silver price forecasts.
Capitalize While Others Are Complacent
While other investors are content believing the lies coming out of Washington, you have a chance to increase your precious metal holdings when gold and silver prices are down. A simple understanding of supply and demand dynamics clearly indicates that these precious metals are eventually moving higher. It’s only a matter of time.
Request a FREE COPY of our Silver Investor Report to learn more about investing in this precious metal to protect your wealth no matter where the economy turns.