Kathem Martin
Precious Metals Advisor
Kathem Martin is a Precious Metals Advisor at Scottsdale Bullion & Coin. He offers personalized, conservative investment advice, helping clients build secure portfolios tailored to their unique financial goals and life stages. Kathem emphasizes open communication and ongoing support to ensure clients are comfortable and confident in their precious metals investments.
Todd Graf
Precious Metals Advisor
Todd Graf is a seasoned Precious Metals Advisor at Scottsdale Bullion & Coin. He has a decade-long career in finance, previously at Morgan Stanley and Vanguard. He is Series 7 licensed and has extensive experience in traditional and defensive assets, providing clients with solid investment strategies.
The shocking events of this past week have dramatically shifted the country’s tone. This change is mirrored in the discussions our advisors have with clients who are increasingly concerned about what the future holds and how it impacts their financial security.
In this week’s The Gold Spot, Scottsdale Bullion & Coin Precious Metals Advisors Kathem Martin and Todd Graf outline the main threats to your financial security, how precious metals offer protection in uncertain times, and when it’s the right time to invest.
Prominent Issues Facing Investors
Investors are entering an unprecedented age as a slew of factors threaten to upend the financial security Americans have enjoyed for decades.
A lot of my clients have been preparing for different types of scenarios than in the past. They’re looking at a lot more possibilities that can happen.–
People aren’t just looking at gold and silver as hedges against inflation. They’re starting to consider these physical assets as actual currency alternatives in worst-case scenarios.
Here are three of the most prominent threats facing investors right now:
1. Political Uncertainty
The current political climate is extremely turbulent. The country bore witness to the first assassination attempt on a president since 1981. At the same time, the current commander-in-chief is receiving serious doubts from both sides of the aisle as his cognitive abilities decline. This political chaos paints an uncertain future as investors remain skeptical of the country’s domestic stability.
2. Economic Upheaval
The Federal Reserve has failed to put the runaway economy back on track following irresponsible spending during the pandemic. Americans are staring at a $34 trillion national debt, a crumbling banking system, and a burdensome cost of living. This economic slowdown is giving the BRICS nations a chance to rival the dollar’s world reserve status — a change that could have dire consequences for investors.
3. Geopolitical Crisis
The US is losing its leading position on the world stage which has serious security implications. Two hot wars have broken out over the past few years alone and tensions are only getting deeper. America’s perceived weakness has only emboldened its adversaries, especially China which continues making small yet meaningful moves to boost its influence abroad. This means economic problems for Americans who largely rely on global trade and stability for USD strength.
How is gold a hedge against uncertainty?
Gold is a tried-and-true hedge against economic uncertainty because of its inherent value, historic performance, and role as a store of value. Gold has a strong negative correlation to the rest of the market. In other words, the yellow metal tends to rise in value as fiat currency, bonds, and stocks falter. Since investor confidence decreases during periods of uncertainty, people tend to turn to gold and silver to bolster their portfolios. Despite minor exceptions, gold prices across millennia have borne this out.
Is gold always a good investment in uncertain times?
Generally, investors can rely on gold to outperform the broader market during bouts of political and economic uncertainty. However, that doesn’t necessarily mean it’s always a good investment.
Investors must take a variety of personal factors into account when judging the investment merit of precious metals for their individual cases. For example, you’d need to consider your investment goals, time horizon, budget, and risk tolerance beforehand. Speaking with an experienced precious metals advisor can help make the best decisions for your unique situation.
“Just because of a spot price…a political outlet, or XY&Z happening…doesn’t necessarily mean it’s the right time for you to invest in gold.”
Kathem Martin
Precious Metals Advisor
Related Video: Why Investing in Gold & Silver is NOT a Cookie-Cutter Approach
Gold Tops All-Time Highs This Week
On Wednesday July 17, 2024, gold spot prices jumped to all-time high of $2,483.60 an ounce1 as the shift of investor sentiment from conventional securities to safe haven assets. Although most of the bump is attributed to the Fed’s planned rate cuts, many outlets (Barron’s, MarketWatch, Nasdaq) have drawn a straight line between gold’s recent surge and the attempted assassination of Donald J. Trump. This spike is part of a much larger upward trend which has forced many experts to raise their gold price predictions.
Don’t Overlook This ‘HUGE’ Opportunity in Gold & Silver
Every investor should assess their own goals before investing in precious metals. That being said, gold and silver prices aren’t waiting around. The economy has reached a tipping point where the next slide into an increasingly inevitable recession could propel these precious metals to new highs.
If you want to learn more about this closing window of opportunity and how you can get in before it’s too late, watch last week’s The Gold Spot.