GOLD $3,000... AND BEYOND WHAT GOLD REALLY MEANS
Fed has pumped $3 trillion into the markets, on top of the $2.2 trillion stimulus package from Congress that sent $1,200 checks to most adults. Both political parties (and the Fed) have signaled a “whatever it takes” approach to fend off an economic crisis. Of course, none of this money is real. It wasn’t earned... It was created. That doesn’t bode well for the value of the dollar. But it will be great for gold. That’s why it’s more important than ever to place a portion of your investment portfolio in gold... and soon. HOW TO BUY GOLD There are essentially two ways to invest in gold... The first is simply buying physical gold. By that, I mean gold bullion and gold coins. This is the ultimate form of crisis insurance. Gold is a way to store your wealth and preserve your purchasing power. If we do experience a complete economic collapse, gold will still serve as a medium of exchange. Nobody likes to pay for insurance. We don’t ever expect our houses to burn down. But we buy fire insurance just in case... and hope that we’ll never need to use it. Physical gold works the same way. Try to buy a small amount of physical gold (and silver) each year and stow it someplace safe. Then forget about it. Don’t watch the price and don’t sell it unless you must. Trust me, you will sleep better at night knowing that you have this financial insurance.
The most important thing to realize about gold is that it’s the only real money. By that, I mean it’s the only currency that isn’t someone else’s liability. It stands on its own. Gold has been used as a medium of exchange for more than 5,000 years. Meanwhile, every single fiat (paper) currency in the history of the world has failed. Governments simply cannot resist printing more and more of it until it becomes so watered down that it’s worthless. Gold’s value comes from its scarcity. And it takes an intense amount of capital, labor, and time to dig it out of the ground and process it. But governments can’t print gold. That’s why they hate it as a form of currency. Gold’s value comes from its scarcity. And it takes an intense amount of capital, labor, and time to dig it out of the ground and process it. Historically, during times of financial crisis or political uncertainty, gold has proven its value as a “safe-haven” asset. That’s why today – perhaps more than ever – it’s critical that your portfolio has some exposure to gold. The economic fallout from the COVID-19 pandemic and ensuing lockdowns is incalculable. But the Federal Reserve and the U.S. government are doing everything they can to prop up the markets. That means the printing presses are running hot. Already, the
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September 2020
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