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.
The CRISIS is here. The one experts predicted would crash the stock market and cripple the economy.
But it’s WORSE than anyone could’ve imagined. It’s a deadly pandemic. It’s spreading rapidly, claiming lives and shuttering economics: schools, businesses, international airways—All Closed.
Investors are SCARED. More than they’ve ever been. They knew the bull couldn’t run forever, but this isn’t how they expected things to end. They didn’t prepare for this. They want out. Of everything. NOW.
Gold dipped, but not nearly as much as stocks and bonds. Only one stands to gain from the market crash and economic downturn: gold. And YOU.
Continue reading to learn why you’re in the midst of the gold buying opportunity of the century.
History on Repeat: Gold’s Monumental 2008 Rebound
“When you can’t sell what you want, you sell what you can.”
This isn’t the first time investors unloaded their entire portfolios in a panic. When the stock market flatlined in 2008, investors sold profitable assets, including gold, to free up liquidity.
Equities continued to suffer through the Great Recession, but gold rebounded to its all-time high of $1,900 an ounce.
On Thursday, March 12, the S&P 500 closed down 9.5% and the Dow Jones 10%, the indices’ biggest daily drop since the 1987 stock market crash. Market analysts foresee more losses ahead.1
How high could gold prices rebound this time?
Gold’s Record Rise
What’s Different in 2020? New Threat, More Debt, Fewer Resources
“This is a very, very untested moment in our history. It’s not like the great financial crisis, it’s not like the dot-com bubble. It’s like both at the same time. It’s the severity and the depth of the great financial crisis and the long period of the dot-com bubble.” — Chamath Palihapitiya, founder and CEO of investment firm Social Capital.
What’s different this time compared to 2008? We’re in a crisis. It’s bigger than the financial market. Supply chains are broken. Workers are home. The economic engine is broken.
And the Fed can’t fix it. Not this time.
Back in 2007 before the stock market peaked and the economy paled, interest rates were 4.75%.2 The national debt was $9 trillion.3 The central bank had a lot more resources with which to revive the economy.
Today, interest rates are a mere 1.25%. The national debt is an astounding $23 TRILLION. Such conditions could make a rescue like the Fed performed in 2008 much more difficult, a situation the current Fed Chairman, Jerome Powell, recently came close to acknowledging.
We’re seeing it already. The Fed’s announcement on Thursday to offer banks at least $1.5 trillion in loans with which to aid financial markets quelled investor fears for just a few hours. Frenzied selling returned by midafternoon.4
Gold Could Be the ‘Only Safe Haven Left Standing’
‘Investors are so fearful, they’d rather hold onto cash. As the saying goes, ‘Cash is King’—that is unless interest rates fall below zero in the coming months, which at this juncture, I wouldn’t take off the table here in the U.S.’ — Adam Koos, president of Libertas Wealth Management Group
Investors are panicked because, already, this crisis is nothing like the last one. A drop in real estate prices upended Wall Street in 2008. Now, a virus—deadly and unpredictable—is effectively paralyzing the global economy.
It couldn’t have hit at a worse time. The debt crisis is bigger than in 2008. Interest rates are historically low. Central banks’ resources are limited.
But throwing the baby out with the bathwater, while necessary for some, is short-sighted because soon gold will be your best defense against a severe, protracted recession and negative interest rates.
When inflation skyrockets, which could very well happen if the pandemic keeps workers home and central banks flood markets with money, gold will offer the only true wealth preservation.
Central banks will continue their record gold buying spree. Investors will hoard the precious metal, no matter the premium.
What does all this mean for you? Bargain gold prices are here today—and likely gone tomorrow. The time is now to secure your wealth before prices possibly surpass 2011’s high of $1,900.
‘Gold is going to be the only safe haven left standing.’ — Peter Schiff, CEO of Euro Pacific Capital5
Chaos breeds opportunity. The greatest one of the century in the gold market is upon us.
Will you seize it?
SBC Advisors Are Standing By To Take Your Call
We understand you may be worried about your financial future right now. You’re not alone. These are frightening times, and many of our clients are calling us for advice.
We want you to know we’re here for you. Our advisors saw clients through the last financial crisis and can help again this time around.
Feel free to reach out to us with your questions and concerns. We’re standing by.
Call us toll-free at: 1-888-812-9892
Everyone at Scottsdale Bullion & Coin would like to offer our condolences to any of you who have lost a loved one to the coronavirus. We wish all of you good health and safety during this crisis.