Economic Reality Check: Why Gold as Wealth Insurance Belongs in Your Portfolio

By:  

Steve Rand

Steve Rand

General Manager / Sr. Precious Metals Advisor

Steve Rand is the General Manager and a Sr. Precious Metals Advisor at Scottsdale Bullion & Coin. He brings over 20 years of experience in the physical precious metals markets.

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 & 

Brian Conneely

Brian Conneely

Precious Metals Advisor

Brian Conneely is a Precious Metals Advisor at Scottsdale Bullion & Coin. He's worked in the precious metals market since 2009, trading commodities and futures before moving into physical gold & silver investing.

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The Gold Spot

February 23, 2024

Published

The Gold Spot

People have been noticing a gap between what they’re being told and seeing. Over the past few weeks, this difference has grown into an impassable void as people wake up to the harsh economic and geopolitical realities threatening their financial stability. While everyday Americans can’t influence these hazards, they can choose how they respond.

In this week’s The Gold Spot, Scottsdale Bullion & Coin Sr. Precious Metals Advisor Steve Rand and Precious Metals Advisor Brian Conneely speak to the risks investors face and how physical gold acts as wealth insurance during these economically fraught times.

Reality vs Media

Government propaganda and mainstream media narratives can only hold back the tide of truth for so long. Eventually, official reports and popular coverage run headfirst into reality, and the people see what’s really going on. Right now, we’re seeing the frantically built facades crumble in real time as politicians and pundits struggle to hide reality.

Southern US Border

The Biden administration’s insistence that there’s calm on the southern border is falling on deaf ears. As border states clash with federal agents, so-called sanctuary cities turn on the federal government, and Congress throws a tantrum over border legislation, the vulnerability of the border and blatant inaction of officials are clear.

Inflation

Among the most persistent and damaging lies being spread is the premature victory cry over inflation. Currently, inflation sits above 3% which is still 50% higher than the Federal Reserve’s target range.

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Plus, the difference between inflation and the rate of inflation reveals that prices are still going up, just at a slower rate than before.

Geopolitical Risk

With hot wars raging in Eastern Europe and the Middle East, it’s becoming tougher to convince Americans of their economic stability and direct safety. While our leaders paint a hopeful picture, Ukraine is being forced to cede crucial ground to Russia, and Israel is quickly losing international support due to its protracted response to the October 7th attack.

US Debt

The looming US debt catastrophe has been dubbed “the most predictable crisis” in history by JPMorgan CEO Jamie Dimon. Standing at a whopping $34 trillion and projections to reach over $144 trillion by 2053, the national debt is too monumental to ignore. It’s only a matter of time before Americans feel the economic gut punch.

Suggested video: U.S. Debt Visualized: $34 Trillion

Stock Market Pullback?

The stock market is booming despite the growing economic and geopolitical threats. This surge in growth has many investors FOMOing into inflated stock prices, putting their hard-earned money at risk. As the market approaches record highs, the chances of a significant drop increase drastically.

The DOW, S&P [500], and NASDAQ are very, very vulnerable to…a pullback.

–Sr. Precious Metals Advisor Steve Rand

At some point, the gravity of poor economic conditions will return stock prices to their true value, similar to what we saw following the inflated rally off the back of pandemic spending.

Gold as Wealth Insurance

People get health, house, car, and life insurance not because of their inevitable use but because of the overwhelming costs of NOT having protection when disaster strikes. Similarly, gold has been used as wealth insurance for centuries due to its ability to maintain and even gain value amid economic downturns.

The majority of people that come to us…are looking to secure their wealth and they’re looking for something as…insurance against financial setbacks and potential catastrophe.

–Sr. Precious Metals Advisor Steve Rand

Through a precious metals IRA, you can even bake this insurance policy into your retirement savings through tax-deferred investments in gold and silver coins and bullion.

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

There’s no telling precisely when the economic floor will fall out from under investors, and the government’s persistent lying doesn’t make the assessment any easier. Smart investors aren’t taking their chances. They’re acting NOW by diversifying with physical gold and silver to shore up their wealth from the eventual devaluation of traditional markets.