A Wealth Summit | The Gold Standard #2215

https://www.midasgoldgroup.com/

Traditional ways of investment thinking must evolve with the reality of currency devaluation. In this Gold Standard Wealth Summit, host Dave Deno, Ken Russo – VP of the Midas Gold Group, senior trader at the Midas Gold Group, and a Marin Corps veteran James Clark convene to discuss the need for every investor to protect their nest egg and diversify their portfolio. They discuss how gold and other precious metals protect your wealth during volatility and great uncertainty.

Forty-One Year High Inflation

High inflation isn’t going away. Price hikes seem to hit a new record with each passing month. March saw 8.5 percent inflation, the biggest gain since 1981. The Fed has begun raising interest rates to control inflation but has had little effect. Supply chain disruptions and consumer demand also keep prices high. Dave and Ken have talked many times on this program about how high inflation is here to stay.

The New Normal

Many business sectors, our society, and our personal lives have been impacted by the pandemic. Many things will never return to the way they were before, including the economy. We are witnessing the dismantling of the US dollar. The US dollar is losing its grip on world reserve currency status. The US dollar is a Federal Reserve note and not backed by anything except a government decree. The US dollar used to be backed by gold and silver, but no more and never again. Gold and silver remain the reliable store of value they have always been.

The window of opportunity to transfer some of your wealth into gold won’t be open indefinitely. Asset bubbles are the largest in history, and gold remains undervalued. The need has never been greater for people to take a percentage of their money out of the banking system and move it into gold or silver. Precious metals offer wealth preservation and tremendous potential for future price appreciation.

The Problems of Printing Money

The printing of money is the default response to everything, it seems. Ken describes the problem of printing money as global addiction that is spiraling out of control. It’s a huge problem compounded by the fact that government agencies are forthcoming about the truth of the situation.

For example, the New York Times reported the federal government spent $6.55 trillion in 2020, while taxes trailed at $3.42 trillion. Much of the spending came from the $2.2 trillion economic relief package Congress passed in March. The gap between what the government spends and what it earns through tax receipts and other revenue is about $2 trillion more than the White House’s budget forecast in February. It was three times as large as the previous year.

The problem with a sustained practice of printing money is the hyperinflation that arises from prices rising faster than people can earn enough money to pay for it. Poorer countries are most susceptible to hyperinflation. The United States is a wealthy nation, so it can tolerate printing more money than other countries, up to a point. We don’t yet know what that point is, but it seems the Fed is dead set on finding out.

The Coming Recession

How will we know if we are in a recession? Two successive quarters of negative economic growth is the standard definition. Remember the last Great Recession, one of the largest and deepest in modern history, lasted from December 2007 until June 2009.

There is a narrow margin for the Fed to address the problem of inflation before it pushes the economy into a recession. The economy and labor markets movement give the Fed the confidence to keep pushing the recession envelope by nudging higher and higher interest rates. You can’t help but think that it’s all an experiment. The whole country is venturing into uncharted economic territory.

High inflation and supply chain issues don’t paint an optimistic future for your personal finances. Consumers are trying to save more. This lack of spending could stall the economy.

Featured Precious Metal Product

Government minted bullion bars are rare. This episode’s featured precious metal product is the one-ounce Royal Canadian Mint Gold Bar. The Royal Canadian one-ounce gold bullion bar is made of 99.99 % fine gold. Ken points out the importance of having diversification within a portfolio of precious metals. Gold bullion bars offer a way to buy physical gold at the lowest price per ounce.

The Royal Canadian One Ounce gold bullion bar, a trusted investment piece worldwide, is an excellent way to hold minted bullion.
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