John Karow
Precious Metals Advisor
John Karow is an experienced lawyer and Precious Metals Advisor at Scottsdale Bullion & Coin. He holds degrees from Lehigh University, the University of Missouri, Cornell University, and St. John’s University School of Law. John is a knowledgeable authority in precious metals, dedicated to helping clients navigate economic cycles and gold and silver investments.
Tim Murphy
Precious Metals Advisor
Tim Murphy is a Precious Metals Advisor with over 15 years of experience. He started on the New York Commodity Exchange floor before founding his own brokerage firm. Tim joined Scottsdale Bullion & Coin to leverage the small-company feel with national exposure, focusing on personalized, client-first service and fostering long-term relationships.
The government’s reassurances (read: lies) of a soft landing fall on deaf ears as investors around the world prepare for economic pain. In this week’s The Gold Spot, Precious Metals Advisor John Karow and Precious Metals Advisor Tim Murphy discuss the impending debt crisis, its global implications, and why investors must get into gold and silver before it’s too late.
US Debt Heads for $35 Trillion
The US national debt is fast approaching $35 trillion! That’s not counting unfunded liabilities such as Medicare, Medicaid, and Social Security. While the total amount is mind-boggling, the exponential pace of accumulation is the real threat. Right now, the government is adding $1 trillion every 100 days.
We’re printing money like there’s no tomorrow.–
At this rate, the debt is expected to hit $36 trillion by November. There’s nothing wrong with a manageable amount of debt, but our government has proven incapable (or simply unwilling) of balancing a budget.
Flashback to the 1970s
The government’s rampant debt accumulation threatens to plunge the US economy into a deep recession of the likes not seen since the 1970s. Many experts warn of impending stagflation, where high inflation, interest rates, and weak markets wreak havoc. J.P. Morgan CEO Jamie Dimon cautioned that the economy “looks more like the 1970s than we’ve seen before.”
The rising debt can only lead to one thing: stagflation. That’s a weak economy, higher inflation, and higher interest rates.–
China Swaps USD for Gold
The debt might be domestic, but the fallout is global. China has been paying close attention to America’s economic foibles to mitigate risk and exploit the power vacuum. The entire country is dumping the US dollar in favor of gold. The People’s Bank of China (PBOC) was the single largest buyer of the yellow metal in 2023 and isn’t slowing down in 2024. Even Chinese citizens are flocking to gold.
BRICS Follow Suit
The BRICS nations are following in the footsteps of China – the group’s de facto leader – by ditching the dollar for gold. The burgeoning economic block of mid-sized nations is the biggest driver of global de-dollarization as countries seek distance from the fledgling US dollar.
Experts Ring Alarm Bells
As mentioned, various experts are raising alarm bells regarding the economy’s direction. In an tweet, Elon Musk said, “America is going bankrupt” while bemoaning that most taxes are covering “past government incompetence.” The Tesla CEO shared a chart showing the evolution of the US dollar’s declining value, suggesting that the USD is close to the Zimbabwean dollar, which suffered hyperinflation.
Where are we with dollar value destruction, you might ask? pic.twitter.com/0LD8OggFqu
— Elon Musk (@elonmusk) July 22, 2024
Jamie Dimon has echoed those warnings, suggesting the debt problem is the “most predictable crisis” in the country’s history. In the chorus of concern, famed investor Ray Dalio pointed to the dwindling demand for US treasuries – the primary funding for debt. Even the International Monetary Fund (IMF) is pleading with American leaders to handle the debt, which it is identified as a “growing risk to the US and global economy.”
Gold Prices Moving Higher
In response to surging demand, gold prices have been on a tear, setting multiple records in the first half of 2024. In fact, gold is up ~20% since the beginning of the year. Between 2017 and 2021 – when the US debt skyrocketed – the yellow metal boomed over 54%.
The trend is clear: Gold prices go up as the debt rises.
Get on Board Before Gold Takes Off!
In the face of tremendous economic uncertainty, gold and silver have remained steady. These precious metals have moved so confidently that experts are raising their price predictions. Investors who wait for the proverbial shoe to drop – in the form of a recession, stagflation, or dollar collapse – will only buy into gold and silver at higher prices.
You can wait to buy gold, but you’re going to pay more for it and be sorry that you did wait. So, get on board now.–
Check out last week’s The Gold Spot to discover why you shouldn’t overlook this huge gold and silver opportunity.