![]() Holding physical gold and silver - either in your possession or at a secure vault - should be a long-term decision. However, we’re not primarily focused on the short-term price movements of precious metals. We also published research in April 2020 on how to pay a 1.5% premium or less for physical silver (at a time when physical silver premiums were 30%+, so our subscribers saved a lot of money).Īnd frankly, we think that pricing is one of the things that makes gold really attractive right now it’s one of the only major assets that’s NOT at an all-time high. Prior to the precious metals run-up in 2020, we made a case for a significant increase in gold and silver prices. Over the past few years, we’ve kept subscribers on the right side of the precious metals market. The same goes for silver, which is nearly 50% down from its all-time high of $50 per ounce set in April 2011. It’s one of the few assets that’s not at an all-time high. Since hitting an all-time high of $2,058 per ounce in August 2020, gold remains down. But the best we can realistically hope for is a permanently higher plateau of prices.īecause of this, we want to have an in-depth discussion about planning for inflation… But first up, a solution that you can put in place todayĬonsidering the One Asset Class That’s Still Undervalued: Precious Metals Yes, it’s possible that some of these inflationary forces are temporary. ![]() The US economy is so addicted to cheap money and 0% financing that raising interest rates in a meaningful way (in order to prevent rampant inflation) could cause a major recession, as well as a potential crash of asset prices. The Fed’s primary tool to fight off financial and economic problems is adjusting interest rates.īut at this point, with interest rates this low, they have nearly no leverage left. Right now, if you make your living in US dollars, then unless you’re diversified, your entire livelihood may rest on the Fed’s ability to sweep all negative consequences under the rug and keep them under control. Of course, that’s not what history teaches us: Every episode throughout history where a government or central bank has dispensed with restraint invariably has led to financial ruin. Yet the Fed insists there will be no consequences. Prior to the 2008 financial crisis, the Fed’s balance sheet was valued at roughly $850 billion. The Federal Reserve is printing extraordinary sums of money right now… and that’s quite a statement, given how much money they’ve printed over the past decade. In this month’s Sovereign Research Monthly Letter, we shared how best to approach this new environment, along with some strategies for hedging against inflation… We’re focused on hedging against fiscal and monetary chaos, including much higher inflation. This adds up to further devaluation of the US dollar.īut we’re not focused on hedging against the dollar. And it’s unlikely that government spending will slow down anytime soon. Or the gas station.Īfter a year of lockdowns, pent-up demand, coupled with trillions of freshly conjured dollars - has created a perfect storm of inflation. If you can’t see the inflation, you’re clearly not paying attention. In today’s Knowledge Series mailer, we give you a taste of what to expect from these Monthly Letters… Monthly Letter : Some Clear Thinking and Actionable Steps for an Inflationary Environment
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |