US Debt Hits ‘point of no return’ as Gold & Silver Gear Up for Rally

On the surface, the economy might appear steady and strong with inflation easing, employment numbers rising, and positive remarks from fiscal leaders. However, a deeper look at market fundamentals reveals underlying vulnerabilities that put investors at risk.

In this week’s The Gold Spot video, Scottsdale Bullion & Coin Precious Metals Advisors Tim Murphy and Joe Elkjer explain why the economy isn’t as stable as it appears, why we’re at a point of no return, and how physical gold and silver could protect investors.

Manipulation Hiding Weakness

It seems manipulation is becoming a mainstay across media and markets as investors consistently notice a stark gap between what they’re being told and what is real. Despite showing recent strength, gold and silver prices are still artificially weighed down as big banks pump futures contracts into the markets, resulting in lower-than-expected prices.

Lower Prices = Higher Demand

A natural yet unintended consequence of this high-level meddling is surging demand. Lower prices provide a fleeting buying opportunity for investors looking to scoop up precious metals at reasonable prices. A lot of the demand is driven by central banks buying up record amounts of gold, although retail investors are pulling their weight, too.

“Prices are low, demand is high, and the physical supplies are being pulled out. It's setting up for an incredible rally in the metals markets.”

Tim Murphy

Precious Metals Advisor

Market experts predict gold prices will slingshot to the upside in 2024 due to the bullish combination of temporary price depression and steady demand.

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A Point of No Return

Not even direct market manipulation can distract from the economic horror show our fiscal leaders are putting on. The effects of national debt have been advantageous for a while, spurring economic growth and quick recovery from downturns. However, the government’s extreme borrowing and spending problem is bringing the economy to a point of no return.

Record High US Debt and Deficit
Right now, the country is saddled with a suffocating $34 trillion debt and exponential interest payments of over $1 trillion a year. Only 43 years ago, the national debt was $1 trillion! In a rare moment of candor, Fed Chair Jerome Powell admitted that the government is “on an unsustainable fiscal path.”

Growing Commercial Real Estate Debt

At the same time, Wall Street is sweating over the potential for another regional bank crisis as $2.7 trillion worth of commercial real estate debt comes due. Small banks accounting for 80% of those loans could struggle to collect payments from borrowers, which took a massive hit from the commercial real estate shakeup following the pandemic.

Record High Credit Card Debt

Personal spending is another component of the country’s debt fiasco. Credit card debt just notched a record high of $1.13 trillion, and delinquencies hit more than 50% in 2023. Americans are feeling the squeeze from years of inflation and currency devaluation, resulting in yet another debt hole in the economy.

Buy Gold and Wait, Don’t Wait to Buy Gold

The stability of the economy is severely compromised by the debilitating debt crisis. This structural weakness directly puts your wealth at risk when it’s invested in traditional, dollar-backed assets. Smart investors act based on what they see instead of what they’re told by hedging with precious metals.

“We’re at a point of no return and owning physical gold and silver…is the only viable option…to protect you from something…potentially very disastrous over the years to come.”

Tim Murphy

Precious Metals Advisor

Right now, gold and silver spot prices are trading sideways, giving investors a limited window to scoop up gold and silver before prices rise. It’s an advantageous time to expose your portfolio to precious metals or dollar cost average to a lower cost basis for a higher yield.

If you’re looking to get more from your gold and silver investments, get a FREE COPY of our Gold and Silver Report today!