The Mentality of Owning Gold | The Gold Standard 2329

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In this special episode of The Gold Standard, hostess Jennifer Horn and her guest Ken Russo, are joined by another founder of Midas Gold Group, James Clark, also a Marine Corp. veteran. The three explore the significance of precious metals in safeguarding your retirement investments.

President Richard Nixon took the US off the gold standard on August 15, 1971, due to several economic challenges: trade imbalance, rising inflation from the Vietnam War, and speculative attacks on the dollar where investors and other countries question its stability and value.

The gold standard linked the dollar’s value to gold, but constant outflows to settle trade imbalances and international pressures prompted Nixon’s decision. Suspending the dollar’s convertibility into gold (Nixon Shock) gave the Fed free reign over monetary policies and ended the fixed exchange rate system, transitioning major currencies to floating rates. Nixon marked the start of fiat currency, where money’s value relies on trust in the government rather than being backed by a physical commodity like gold.

Inflation is the persistent increase in the general price level of goods and services, eroding the purchasing power of money over time. For the average person, inflation significantly affects savings and investments, diminishing their value. Investments should outpace the inflation rate to protect against inflation’s adverse effects. Precious metals historically outperform inflation. Diversifying portfolios with precious metals preserve purchasing power because it outpaces inflation. Staying informed and proactive will help you make wise investment choices that safeguard wealth from inflation’s impact and work toward financial goals.

The collapse of banks like Silvergate Bank, Silicon Valley Bank, and Signature Bank in March 2023 is a reminder of the risks of relying solely on the banking system for savings and investments. Unforeseen factors like undercapitalization and deteriorating loan quality can lead to severe consequences, including loss of funds.

Gold is considered money due to its intrinsic properties, making it a reliable store of value and medium of exchange. Throughout history, civilizations have recognized its rarity, durability, and universal appeal, bestowing it with enduring value. Unlike fiat currencies, which governments and subject to inflation can influence, gold’s scarcity ensures its stability over time. Its time-tested role as a form of money is underpinned by the trust it garners as a tangible asset. As a result, gold continues to be embraced by investors and central banks worldwide, solidifying its status as a timeless and trustworthy form of money.

Gold and silver appeal to a diverse range of savers and investors. Conservative individuals value them for capital preservation and stability, while retirement planners seek their protection against inflation and economic uncertainty. Diversification seekers appreciate their low correlation with traditional assets, and long-term savers see them as a wealth preservation tool. For risk-averse individuals, these metals offer a defensive strategy during economic downturns. Globally recognized and historically valuable, gold and silver can provide a secure foundation for various investment strategies. Consider your financial goals, risk tolerance, and time horizon before including precious metals.

In the post-pandemic era, US consumers confront economic challenges, with alarming statistics signaling potential financial instability. A two-year inflation surge and $17 billion household debt raise concerns about the erosion of purchasing power. Mortgage rates at 7% and credit card interest rates near 25% strain budgets. Over 450,000 job cuts in 2023 heighten anxieties about job security and income prospects. Seeking a reliable hedge, many turn to physical assets like gold and silver, historically serving as value stores during turmoil. Diversifying into these metals protects wealth from inflation and market fluctuations. Tangible assets offer security and a prudent strategy to safeguard financial well-being.

The Gold Standard reminds us of the value of diversifying savings and investments beyond traditional options. Subscribe now and embark on a journey towards financial resilience.
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