“Don’t listen to what they say…watch what they’re doing.”– Precious Metals Advisor Damian White
Those in power always tend to say one thing and do something completely different. We’re only a few weeks into 2023, and we’re already seeing government actions across the world contradict what the citizenry is being told to do.
Watch this week’s The Gold Spot to hear Precious Metals Advisors Todd Graf and Damian White expose this discrepancy and explain why everyone is dumping the dollar in favor of hard assets.
A Global Shift to Gold
The World Gold Council recently released a report revealing that gold accumulation has reached a 55-year high. Central banks worldwide seek a safe haven from the crumbling global economy, which many fear will hit a recession in 2023. This global shift to gold is a strategy to strengthen local currencies in the face of worsening economic conditions. It’s a move that’s reflected in the recent boom in gold spot prices.
Unsurprisingly, China and Russia have been exposed as the largest purchasers of gold, confirming suspicions that the CCP and Kremlin were eager to increase their holdings. There’s increased speculation that China is scooping up gold to reinstate the gold standard. Some of their biggest buys were in the final quarter of 2022, and the trend isn’t expected to stop.
Dollar Dumping Accelerates
As gold’s strong 2023 outlook attracts investors, the dollar is showing signs of weakness. The greenback is faltering after a years-long rally that included a two-decade high point. Technical analysis suggests a potential downward trajectory from this point onward. There are plenty of real-world factors contributing to the USD’s instability.
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Countries across the world are proactively distancing their economies from the dollar. What was once seen as a significant boon to economic growth and strength is now viewed as a liability. This global dollar dump will have disastrous implications for everyone in the US as greenback-linked assets could experience sharp drops in value.
After the gold standard was abandoned, the US dollar became the anchor to which world economies tied their currencies. Now, leaders are starting to realize the West’s loosening grip on global assets and other economic factors. This slow and gradual process could take years (maybe even decades) to unfold, but investors need to start preparing for it by adjusting their portfolios accordingly.
Don’t Wait to Buy Gold, Buy Gold and Wait
The same factors threatening the strength of the dollar are bolstering gold prices. Investors should steal from the playbook of central banks and reinforce their wealth by diversifying with gold and other precious metals. It’s important to be exposed to something that’s tangible and stable, especially during periods of economic turmoil.
Gold has a proven track record as a worthwhile investment for centuries through some of the roughest recessions in history. Don’t make the mistake of trying to time the market perfectly. Instead, buy gold and silver to protect your savings and wait for the inevitable dips. Request your FREE COPY of our popular Precious Metals Investment Guide to get started.