Booms That Eventually Wiped Out Many | The Gold Standard #2119

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We discuss three stock market crashes, each one preceded by huge equity moves, record earnings, and wide speculation. The three boom-to-bust events are 1929, 1987, and the dot-com bust of 2002. You are probably familiar with all three of these financially devastating events, but you may be surprised to learn how gold responded during each one of these crises.

Before a Thursday in late October of 1929, the stock market was booming. The roaring twenties saw many people who had never invested in the stock market jump on the bandwagon, wanting to rush in to buy shares. For a while, investors were making money hand over fist; in fact, some even took out loans or bought on margin so that they cut to get a more significant piece of the piece. But then, suddenly, the bottom fell out. People had lost their life savings. Those who had borrowed money to invest had not only lost money, but now we're in a financial sinkhole.

Today's stock market has been booming like it was in the first part of the 1920s. Last November began with stocks on another tear, setting one record after another, but ended abruptly with the market in retreat. Now, the market seems to be on the upswing again. Who knows? By the time you read this, it might be dipping once again. The point is that conditions are unstable, debt is at an all-time high, and market activity seems to be fueled more by speculation rather than sound investments. There are other disturbing indicators as well. Consider the not-so-convincing rhetoric from government officials insisting supply-chain bottlenecks and inflation are temporary.

It's difficult to tell if a stock market dip will turn into a crash. Usually, when a market correction occurs, it happens quickly and without warning. It took the market 25 years to recover from the impact of 1929.

Stock market crashes hit with devastating impact, decimating portfolios intended to fund retirements and college educations. One of the warning signs of something wicked this way comes is the Fed's activities.

Jerome Powell and the rest of the gang have kicked the can as far as possible. Now they're about at the end of the road. Thanks to all the money printing, the annual inflation rate is at a three-year high of 6.2%. That was as of October. Inflation is likely to remain high throughout 2022 and beyond. The Fed will have little choice but to raise interest rates to countermand the inflation rate, force it down to a less painful 3 to 4 percent. Investors don't like high-interest rates. It gives them a stomachache, but the Fed is all out of moves. When they raise interest rates, and they will, people will borrow less, corporate earnings will suffer, and stocks will backslide. Like a tornado coming in the middle of the night, it can all happen while you're sleeping.

Inflation is the silent killer of the economy because its corrosive impact affects many areas that you wouldn't consider. All investments seem to rise as inflation increases. The actual return is less than you think, depending on the inflation rate. For example, an investment might return 10%, but the dollar inflated 20%, which is a loss of 10%. Precious metal values rise as the number of dollars increases. Gold and silver are eternal money and can always be relied upon to do accurate accounting no matter how hard officials try to fudge the balance sheet.

History shows us how quickly conditions can change on Wall Street. All that you have worked for, earned and saved, can be gone before you have a chance to do anything about it. That's why the team at Midas Gold Group is eager to share their message with as many listeners as they can reach. During financial turmoil, bubble explosions, or market crashes, wealth is transferred from what is perceived as having value to that which holds intrinsic value; gold, and silver.

The Gold Standard shines its spotlight on the official gold bullion product of the United States. The American Gold Eagle is the most popular bullion coin globally and is especially popular amongst US citizens because it's pure Americana. Signed into law by President Regan in 1985 to revitalize the nation's precious metal bullion production, the American Gold and Silver Eagle program was an immediate success. The American Gold Eagle is a foundational piece, one that every American would be proud to hold in their hands. The obverse features Augustus Saint-Gaudens's Lady Liberty from the $20 Gold Eagle. The reverse features images of the American bald eagle. The American Gold Eagle qualifies for precious metals IRA.
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