The gold market continues to consolidate near its record above $2,750 an ounce. Despite the precious metal’s 33% rally so far this year, one analyst says this is still the calm before the storm, and now is the time for investors to be overweight in commodities, specifically gold. 

In a recent interview with Kitco News, Robert Minter, Director of ETF Strategy at abrdn, advised that investors should ignore potential short-term market volatility and focus on the bigger picture: interest rates are heading lower. 

At the same time, lower interest rates and stubborn inflation pressures mean that real interest rates could fall faster than some expect. Minter added that, in this environment, investors should be overweight in commodities, with a specific allocation to gold. 

Minter noted that traditionally, this environment has been favorable for gold, yet many investors are still choosing to sit on the sidelines. He pointed out that underwhelming investor interest is one of the biggest bullish factors he sees supporting long-term gold prices. 

Minter highlighted that through 2023 and most of this year, institutional and retail investors have been liquidity providers, as they have sold their gold-backed exchange-traded funds (ETFs). He explained that the market was able to absorb the excess liquidity because central banks have been on an unprecedented buying spree. 

Although central bank demand has slowed, Minter said that investor demand has started to shift, with gold-backed ETFs seeing inflows for the year. 

“That dynamic where the traditional supplier of liquidity, ETF gold sellers, is gone, and these investors have actually become liquidity takers. This new market dynamic will be transformative,” he said. “It’s very rare to have structural tailwinds with falling interest rates alongside such low positioning in the marketplace. It just demonstrates how much potential there still is.” 

Minter added that it is not surprising investors are starting to pay attention to gold as they seek to protect their purchasing power from rising inflation, which is partly caused by reckless government spending. 

After a long campaign season, Americans will head to the polls next week to vote for a new President. Despite all the rhetoric, Minter said it is clear that both former President Donald Trump and current Vice President Kamala Harris regard the U.S. dollar as valuable as “Monopoly money.” 

“Regardless of who wins, both candidates have been ignoring the basic laws of economics,” he said. “Both will be fiscally irresponsible.” 

In a world drowning in debt, Minter said he expects a Democratic sweep to be the most bullish for gold, as a full sweep of Congress and the White House would likely usher in a new round of government spending. 

While rising debt and consumer prices will continue to support gold prices through the last two months of the year and into 2025, Minter noted that the precious metal is more than just an inflation hedge. 

Minter said he is also bullish on gold because a new U.S. President is unlikely to ease global tensions. 

Looking to year-end, Minter said he could see gold prices trading around $2,800 an ounce, slightly higher than current prices. He added that the market could easily reach $3,000 an ounce in 2025. 

“If we get the level of rate cuts the bond market is pricing in, and rates are 200 basis points lower by next year, then it’s not unrealistic to see gold prices at $3,000 an ounce,” he said. 

Story by Neils Christensen - bullet points added by HGG https://www.kitco.com/news/article/2024-10-28/gold-shines-us-dollar-being-treated-monopoly-money-abrdns-robert-minter

 

Protect Yourself Against These Events by Hedging with Gold & Silver

REQUEST A FREE GUIDE

The current setup on the silver chart is a lot like the start of the silver bull market of the early 2000s. In those days silver was under $5 and considered cheap.

The current bottoming pattern from around 2014 to now is very similar to the early 2000s bottoming pattern (see the chart below).

image-20241028211511-1

I have highlighted two similar patterns (marked 1 to 5).The bottoming period of the early 2000s started when silver broke down at the black support line (bottom of the channel) in late 2000 and made a low at point 5. This is similar to the period since the breakdown at the blue support line (bottom of the channel) in late 2014, eventually making a low in 2020.

I have indicated how the current chart position is similar to late 2003, when prices were still around $5. Late 2003 was still very early in the bull market, an excellent time to buy. Buying at the current levels presents equally great value, given the significant inflation since 2003.

This is especially true given that silver prices is expected to catch up with the significant debt inflation, as explained here.

Price will probably soon move back inside the channel just like it did in December 2003 and stay above that blue line for the rest of the bull market.

So while the silver price is still well below that blue line, it is really cheap.

Warm regards Hubert Moolman

Story by Hubert Moolman - bullet points added by HGG  https://silverseek.com/article/these-levels-buying-silver-getting-it-5-2003

 

Protect Yourself Against These Events by Hedging with Gold & Silver

REQUEST A FREE GUIDE

What is a level of U.S. debt that financial markets think is too large? 

The answer is “we have no idea” because it will depend on what is going on around the world and where else investors could park their money, said Maya MacGuineas, the president of the Committee for a Responsible Federal Budget, a nonpartisan budget watchdog. 

“When you look at the fiscal situation structurally, clearly it is unsound. The definition of unsustainable is if your debt is growing faster than your economy. Ours is forever,” MacGuineas said Wednesday at a discussion at the Institute for International Finance. 

Many people in financial markets liken the U.S. fiscal position to a bubble, she said. But there’s a lot of money to be made while the bubble persists. And being able to time a crisis is impossible, MacGuineas said. 

“So, if you’re in the markets, you’re going to be unwise to bet on a fiscal crisis until it starts,” MacGuineas said. “And then my assumption is it would happen incredibly quickly, a Treasury auction that goes bad, depending on what the responses are, things could go incredibly quickly.” 

Talk of a potential fiscal crisis has picked up on Wall Street. Earlier this week, legendary investor Paul Tudor Jones said he was worried about a potential reckoning over a burgeoning U.S. debt pile. 

Even without the threat of a crisis, the U.S. debt level is damaging the economy, holding down growth and limiting the country’s ability to help those in need, MacGuineas said. Her group opposes large federal deficits. 

In its latest report, released Wednesday, the International Monetary Fund said the U.S. needed to adjust its spending and borrowing but downplayed talk of a crisis. 

“The situation is sustainable,” Victor Gaspar, director of the fiscal-affairs department at the IMF said in a press conference on Wednesday. 

He said U.S. policymakers “have access to many combinations of policy instruments that enable them to put the path of public debt under control and they will do that at the time, and with the composition of their choosing.” 

The close and divisive U.S. presidential election campaign has experts worried. 

Raghuram Rajan, former governor of the Bank of India and now a professor of finance at the Chicago Booth School of Business, asked whether the increasingly fractionalized politics in the U.S. would make progress on the budget deficit unlikely. 

When politics are not cohesive, then both sides only look to help their constituents. “So, spending goes up and revenues go down,” Rajan said at a separate IIF panel discussion. 

During her talk, MacGuineas said politics on fiscal sustainability in the U.S. “are terrible” at the moment. “It’s not just that Republicans want tax cuts and Democrats want spending. They both want both,” she said. It is “political suicide” to advocate deficit reduction, she added. 

Already, there is growing pressure to raise defense spending, and this will likely pass Congress, she said. 

Benchmark rates that help finance the U.S. economy have been rising since mid-September, when the Federal Reserve cut rates for the first time in four years. A soft-landing scenario for the economy has been a big driver, helping push 10-year Treasury yields TMUBMUSD10Y 4.286%  up. But lately so have jitters about what November’s election could mean for deficit spending. 

Story by Greg Robb - bullet points added by HGG https://www.marketwatch.com/story/a-u-s-fiscal-crisis-would-happen-incredibly-quickly-and-theres-no-way-to-predict-when-says-head-of-budget-watchdog-b5c27d20?mod=washington-watch

 

Protect Yourself Against These Events by Hedging with Gold & Silver

REQUEST A FREE GUIDE

  • The yellow metal, which has become increasingly attractive as other traditional “safe haven” assets face mounting risks. 
  • According to strategists at Bank of America, investors – which includes central banks – should rotate into gold as a form of wealth protection against stubborn inflation and debt debasement caused by endless fiat printing and government borrowing. 
  •  “Ultimately, something has to give: if markets become reluctant to absorb all the debt and volatility increases, gold may be the last perceived safe-haven asset standing,” they said. “Central banks, in particular, could further diversify their currency reserves.”

(Kitco News) – After years of receiving no love from retail investors as well as institutions, gold has been on a non-stop tear, setting record high after record high, and according to one bank, investors are now looking more closely at the yellow metal, which has become increasingly attractive as other traditional “safe haven” assets face mounting risks. 

 According to strategists at Bank of America, investors – which includes central banks – should rotate into gold as a form of wealth protection against stubborn inflation and debt debasement caused by endless fiat printing and government borrowing. 

“Gold looks to be the last 'safe-haven' asset standing, incentivizing traders including central banks to increase exposure,” the strategists said in a Wednesday note.

With US debt expected to continue rising, the strategists warned that the Treasury supply faces risks, and higher interest rate payments as a share of GDP will make gold a sought-after asset over the next few years.

And it’s not just the U.S. that faces the prospect of rising spending. The analysts highlighted the recent report from the International Monetary Fund (IMF), which predicted that new spending could amount to 7%- 8% of global GDP annually by 2030.

 “Ultimately, something has to give: if markets become reluctant to absorb all the debt and volatility increases, gold may be the last perceived safe-haven asset standing,” they said. “Central banks, in particular, could further diversify their currency reserves.”

Amid the various promises and talking points repeated by U.S. Presidential candidates Donald Trump and Kamala Harris, neither has addressed the rising debt level or prioritized fiscal discipline and moderating government spending, which the analysts speculated will lead to the national debt hitting a record high as a share of the economy within the next three years.

“In fact, the tax and spending plans of Vice President Kamala Harris and former President Donald Trump would likely further increase deficits and debt above levels projected under current law: under the central estimate, Vice President Harris's plan would increase the debt by $3.50 trillion through 2035, while President Trump's plan would raise it by $7.50 trillion,” they highlighted.

“The Committee for a Responsible Federal Budget notes that the national debt is projected to reach a new record high as a share of the economy only three years from now, well within the next presidential term, pushing up interest rate payments as a share of GDP,” they said. “In turn, this makes gold an attractive asset, so we reaffirm our $3,000/oz target,” an increase of more than 10% from gold’s current price of $2,715/oz.

“Indeed, with lingering concerns over US funding needs and their impact on the US Treasury market, the yellow metal may become the ultimate perceived safe-haven asset,” they added.

While it has been climbing throughout 2024, gold has seen increased demand ever since the Federal Reserve initiated the latest easing cycle with a 50-basis point interest rate cut last month, rising 4.3% since the cut was implemented amid concerns around the ever-growing global spending and debt levels.

“Accompanying the first 50bp rate cut, inflation expectations have risen, meaning that 10-year real yields, usually the most significant gold price driver, kept declining through September,” the analysts noted. “That said, real rates have also pushed higher in the past couple of weeks. Yet, gold has held onto its gains. The takeaway from this is that lower rates are supportive for gold, while higher rates are not necessarily bearish.”

“In our view, this dynamic has been heavily influenced by the challenging fiscal backdrop, especially in the US, which makes gold an increasingly attractive asset to hold,” they added. “Indeed, rising funding needs, debt servicing costs, and concerns over the sustainability of fiscal policy may well mean that gold prices could increase, if rates move up. This dynamic has played out periodically in recent months.”

Central Banks have been some of the most aggressive gold buyers, with Bank of America analysts noting that the yellow metal now constitutes 10% of central bank reserves, up from 3% a decade ago.

And the recent interest rate cut has finally enticed investors in the West back into the gold market, they noted.

“Western investors stepped in after holding back for a while as they waited for the Fed to kick-start the monetary easing cycle. Notably, non-monetary market participants have increased their exposure on both the physical and paper markets, and our contrarian analysis suggests the latter is not overbought,” they said. “Still, markets are also now factoring in a no-landing scenario for the US and a slower pace of rate cuts. This may curtail the potential upside near-term. There is also a risk that gold may give back some of the recent gains, although we ultimately see prices supported at $2,000/oz.”

In the near term, it’s not just BofA analysts warning that a pullback in gold prices is possible as it hasn’t had a meaningful correction in some time. That said, the tailwinds that have propelled it higher remain, and with its price trading in uncharted territory, there’s no telling how high it could fly before the expected correction happens.

“Upon reviewing the gold chart on the 4-hour timeframe, we can see that gold has finally managed to break above the $2700 level, just as we anticipated in our previous analysis,” said TradingView analyst Arman Shaban. “Currently, it is consolidating above this level.”

“Note that the $2714 level is a key supply zone (based on important Fibonacci ratios) for gold, which is why the price reacted to it,” he added. “However, at the moment, gold is trading around $2711, and I still expect further growth from gold unless I see otherwise on the chart. The next short-term targets for gold are $2727 and $2743.7. Keep an eye on how the price reacts to these levels. Also, the most important support zone for gold is between $2673 and $2688.70.”

And for those who have touted the performance of Bitcoin (BTC) and declared that it's only a matter of time before the market cap of BTC surpasses that of gold, X user In Gold We Trust noted that gold has quietly surpassed a market cap of $20 trillion while Bitcoin’s market cap is only 6.75% of that at $1.35 trillion.

Meanwhile... gold's market cap is quietly approaching $20T. pic.twitter.com/gEUvFGzurJ

— In Gold We Trust (@IGWTreport) October 17, 2024

At the time of writing, spot gold trades at $2,717.10 for a gain of 0.91% on the session.

Story by Jordan Finneseth - bullet points added by HGG https://www.kitco.com/news/article/2024-10-18/gold-shines-ultimate-safe-haven-asset-set-hit-3000oz-2025-bank-america 

 

Protect Yourself Against These Events by Hedging with Gold & Silver

REQUEST A FREE GUIDE

The BRICS bloc is quickly moving to establish a new world order under the leadership of Russia as the current BRICS chair has called on member states to create an alternative to the International Monetary Fund (IMF) to counter political pressure from Western nations.

According to a report from Reuters, Anton Siluanov, the finance minister of Russia, met with top BRICS finance and central bank officials this week in Moscow, where he highlighted that the global financial system is controlled by Western countries and said it’s time for the bloc – which accounts for 37% of the global economy – to create a new alternative.

“The IMF and the World Bank are not performing their roles. They are not working in the interests of BRICS countries,” Siluanov said. “It is necessary to form new conditions or even new institutions, similar to the Bretton Woods institutions, but within the framework of our community, within the framework of BRICS.”

The push to establish new institutions comes as Russia's forex reserves in dollars and euros have been frozen under Western sanctions. These sanctions have seriously hampered Russia’s financial system and cut the country off from international capital markets.

Russian President Vladimir Putin has also joined the call to build a new international framework with BRICS allies. As reported by TAAS, Putin told Turkmen President Serdar Berdimuhamedov that Moscow is open to dialogue on building a new world order and invited Berdimuhamedov to the upcoming summit in Kazan.

Putin made the comments while speaking at the “Interconnection of Times and Civilizations – Basis of Peace and Development” international forum, which was dedicated to the 300th anniversary of the birth of Turkmen poet and thinker Makhtumkuli Fraghi.

“Russia is in favor of the widest possible international discussion on the parameters of interaction in the emerging multipolar world and is open to discussing the issues of building a new world order with all our friends, partners, and like-minded people, including within the CIS, the EAEU, the Shanghai Cooperation Organization, and BRICS,” Putin said. “It is in this spirit that we are preparing the BRICS and Outreach/BRICS Plus summit to be held in Kazan on October 22-24.”

BRICS

As part of his outreach, Putin thanked “the current leadership of Turkmenistan, its president, as well as the national leader of the Turkmen people, Gurbanguly Berdimuhamedov, for following the precepts of Makhtumkuli Fraghi, making a significant contribution to maintaining peace and stability in the region, as well as expanding multifaceted cooperation and partnership.”

In other developments that are likely to ruffle the feathers of Western leaders, Iran, which has seen escalating tensions with Israel – and its ally, the U.S. – hopes to sign a comprehensive strategic partnership treaty with Moscow at the BRICS summit in Kazan.

“I hope we will conclude this agreement during the BRICS summit in Russia,” Iranian President Masoud Pezeshkian said at a meeting with Putin in Ashgabat. “If we compare with other [countries], our positions are much more similar.”

The meeting occurred on the sidelines of the Interconnection of Times and Civilizations forum and was the first meeting between the presidents of Russia and Iran after Pezeshkian’s election to the post.

All of the requirements for the signing of the comprehensive strategic partnership treaty have already been completed, and it is expected to serve as a major milestone in the evolving relationship between the two countries. Putin approved the draft treaty on September 18, and Iranian Ambassador to Moscow Kazem Jalali said that the document was ready for signing on October 4.

Pezeshkian underscored that Tehran attaches great importance to relations with Russia, calling the country Iran's “friend and neighbor.” During a phone conversation on July 8, three days after his election as Iran's president, Pezeshki told Putin that he was ready to sign a strategic partnership treaty with Russia at the BRICS summit in October.

Pezeshkian also highlighted the importance of cooperation between the two states in BRICS, the Shanghai Cooperation Organization (SCO) and the Eurasian Economic Union (EAEU).

Working towards that goal is likely to be a focus of the upcoming BRICS summit. According to Russian Foreign Minister Sergey Lavrov, some of the countries in the Association of Southeast Asian Nations (ASEAN) have already accepted the invitation to attend the summit.

asean

“A whole number of ASEAN countries have been invited to attend the [BRICS] summit and these invitations have been accepted,” Lavrov said. “I have no doubts that the approaches being developed within BRICS to various issues of the agenda can quite be of interest for participants in East Asia summits, especially for member states of the Association of Southeast Asian Nations.”

And Russia’s plans for BRICS expansion extend beyond the ASEAN region. According to Russian presidential aide Yury Ushakov, invitations to take part in the BRICS summit in Kazan have been sent to 38 countries, with 32 of them accepted so far.

“Invitations to the summit have been sent to 38 nations. These are member states and those countries that want to cooperate with our organization,” Ushakov said. “Thirty-two of them have already confirmed their participation,” including 24 countries that have confirmed their participation in the summit at the highest level.

“To date, eight countries are expected to be represented by senior officials,” he added. “There are a total of thirty-two countries, but there is still time, and we hope that the range of participants will be expanded to include other states.”

Ushakov noted that in its role as host of the summit, Russia has invited the leaders of its closest neighbors, specifically the Commonwealth of Independent States (CIS) countries, to participate in the meeting.

“All of them have confirmed their participation,” he stated. “We have also invited the current chairs of influential regional integration organizations in Africa, Latin America, the Middle East, and Southeast Asia. In addition to state leaders and senior officials, the summit will, as usual, be attended by the secretaries-general of the UN, the Shanghai Cooperation Organization, the Commonwealth of Independent States, the Eurasian Economic Union, the Union State, and the president of the New BRICS Development Bank.”

He added that “the high level of participation and wide geographical representation at the Kazan summit reflects the significance and role of BRICS on the global stage and highlights the growing interest from countries that pursue independent and self-sufficient foreign policies in joining the association.”

In a play on words, Ushakov called BRICS a pillar of a multipolar world that is being built “brick by brick.”

“We believe that BRICS is a prototype of multipolarity, a structure that unites the Global South and East on the principles of sovereignty and mutual respect,” he said. “We believe that this is quite logical and natural because what BRICS is doing is building a bridge to a more democratic and fairer world order gradually, brick by brick”

“No one can deny that both in its original 'five' format and the newly expanded BRICS, this is a structure that simply cannot be ignored,” he added, highlighting that the ten official members now account for more than 30% of the earth's landmass, have 45% of the world's population, account for more than 40% of total oil production and about a quarter of the world's exports.

“According to forecasts, by 2028, the GDP of the BRICS member countries in purchasing power parity terms will make up about 37% of the world GDP, while the G7's share will fall to 27% and perhaps even lower,” Ushakov emphasized. “As far as our country is concerned, participation in BRICS is, of course, one of our top foreign policy priorities. The influence of this association on the global agenda is constantly growing.”

Ushakov also noted Putin's role in driving the expansion, telling reporters that the Russian President will hold roughly two dozen bilateral talks on the sidelines of the coming BRICS summit in Kazan, with the first meetings starting as early as October 21

“We have more than enough in the pipeline already,” he said regarding the lineup of meetings, which he called a major component of international communication. “We can say in advance that our president is expected to hold around 20 bilateral meetings. All these bilateral meetings will run through the evening of October 24.”

Ushakov also highlighted that efforts to expand payments in national currencies between BRICS members continue, and they are working on a special infrastructure to facilitate this process.

“The Russian Finance Ministry, in cooperation with the Central Bank, is discussing with partners in the association the project of the BRICS-wide financial platform, special clearing infrastructure, and the BRICS reinsurer,” he said. The launch of these projects “will make it possible to broaden the practice of payments in national currencies and reduce costs in mutual trade.”

He underscored that work on this front had been a primary objective during Russia’s time as president of BRICS, saying they “paid much attention to making the financial track more active within the BRICS framework” this year. Russia’s term as chair will finish at the end of 2024.

While the BRICS nations are still working out the finer details of managing trade and currencies between the partners, that hasn’t slowed their de-dollarization efforts.

According to Siluanov, BRICS countries now use national currencies in nearly two-thirds of payments, while the use of the dollar and euro is now less than 30%.

“Indeed, we are in practice using national currencies and the Russian ruble within BRICS - 65% of all the settlements is made in rubles, in national currencies,” he said. “The share of the dollar and the euro is declining, and it is less than 30% now.”

Story by Jordan Finneseth - bullet points added by HGG https://www.kitco.com/news/article/2024-10-11/brics-build-new-world-order-russia-calls-alternative-imf-and-world-bank

Protect Yourself Against These Events by Hedging with Gold & Silver

REQUEST A FREE GUIDE

New Article Images 2

Your Parents Bought Groceries with Silver

A potential collapse of the U.S. dollar could create significant uncertainty, leading many to seek safer ways to protect their wealth and have hard money on hand in case there is a need for barter and trade. During periods of economic turmoil, civil unrest, or war, precious metals like silver emerge as a compelling option. Silver's value could increase dramatically if the dollar collapses.

For thousands of years, silver has been used as a tangible means of exchange, with societies around the world relying on it for trade and commerce. In the United States, silver was a key component of the nation’s currency until 1965, when the government fully abandoned the silver standard by removing it from coins. Just 60 years ago, many people, including your parents and grandparents, used silver to purchase everyday items like groceries.

This shift to fiat currency allowed governments more flexibility to print money but also introduced risks of inflation and devaluation, as currency was no longer backed by a tangible asset like silver. Despite this, silver remains a critical asset for wealth preservation, especially in times of economic uncertainty.

How Silver's Value Changes During a Dollar Collapse

The value of silver is closely tied to the strength of the U.S. dollar. When the dollar weakens, silver often rises in value. Throughout history, during times of currency crises or financial instability, silver has soared as a reliable hedge. Alongside gold, silver provides a practical and accessible way to preserve wealth—real money that exists beyond the reach of government control.

Unlike paper money or digital currencies like CBDCs, physical precious metals cannot be printed or erased with the stroke of a key. Silver offers the advantage of being private money you can hold, free from the oversight and tracking of the digital world.

Historical Lessons

Historically, silver prices have surged during periods of hyperinflation, such as in Germany in the 1920s and Zimbabwe in the 2000s. As national currencies plummeted, silver gained value, with prices in Germany rising by over 1,000% during its hyperinflation crisis. These examples highlight silver’s role as a stable asset in uncertain economic times.

Similarly, during the economic turmoil in the U.S. in the 1970s and early 1980s, silver prices soared in response to rising inflation. These historical patterns underscore silver’s ability to preserve value and provide stability, especially during financial crises or a potential dollar collapse.

Silver as a Currency

For centuries, countries around the world have used silver as the foundation of their monetary systems, often tying their currency's value directly to the metal in what was known as the silver standard. From ancient civilizations like Rome and China to 19th-century Europe and the United States, silver was a reliable store of value and a medium of exchange. Nations on the silver standard issued coins or paper money backed by physical silver, which provided stability and trust in their economies. This system allowed for international trade and economic growth, as silver’s intrinsic value was recognized globally.

The Role of Supply and Demand in Silver's Valuation

Silver’s value is influenced by industrial demand and investor sentiment. These two factors significantly shape the market’s perception of silver’s worth.

Industrial Demand

Silver is used in numerous industries, including electronics, solar panels, and medicine. High demand for silver products in these sectors can drive prices up. On the supply side, mining operations and production levels are essential to meeting industrial demand. Any disruption in mining can lead to a silver shortage, driving prices higher in global markets.

Investor Sentiment

Investor sentiment also plays a crucial role in determining silver’s market value. During times of economic uncertainty, more people seek out precious metals like silver, leading to higher demand and increasing prices. Understanding market dynamics is key to making informed investment decisions.

The Benefits of Precious Metals

For those looking to safeguard their savings accounts or retirement accounts, silver and gold offers several advantages:

  1. Inflation Protection: Precious metals like silver tend to retain their value over time, making them a reliable option for preserving savings.
  2. Economic Security: Silver acts as a safe haven during financial uncertainty, historically maintaining its value when currencies decline.
  3. Diversification: Silver often rises when other markets fall, providing a valuable hedge. Adding silver to your savings or IRA helps diversify your investments and spread risk across different asset classes.
  4. Tax Benefits: Silver IRAs offer tax benefits similar to other IRAs, including potential tax deductions and tax-deferred growth.

Open a Silver IRA or Choose Direct Delivery

Call 844-977-4653
We help you open your Silver IRA at ZERO-cost

Choose Confidently
Understand the advantages of Silver and what options are best for you

Receive Your Metals
Private direct delivery or to your depository of choice

How Does Silver Stack Up Against Other Safe-Haven Assets?

Silver is frequently compared to other safe-haven investments like gold. Although gold tends to be the preferred choice for many, silver presents distinct advantages, including its lower price point and higher industrial demand. These factors make silver more accessible to a wider range of investors seeking to safeguard their wealth.

Silver’s Performance During Economic Crises

Silver has historically shown strong performance during times of economic turmoil and high inflation. For example, during the 2008 financial crisis, silver prices rose dramatically as investors turned to precious metals for protection.

In the 1970s, another period marked by economic instability and inflation, silver prices experienced a significant surge. These instances illustrate how silver can serve as a reliable store of value when traditional currencies face devaluation. Its historical resilience makes silver an appealing option for those looking to protect their wealth during uncertain times.

For those seeking to diversify their savings, a Precious Metals IRA that includes both gold and silver offers a more comprehensive safety net. Additionally, silver coins and bars are widely available, easily liquidated, providing an accessible way to truly protect against paper investments and other illiquid investments.

Silver’s Unique Quality & Uses

Silver plays a vital role in modern technology and sustainable initiatives. Silver is indispensable in manufacturing due to its excellent conductivity and antibacterial qualities. It’s widely used in batteries, electronic devices, and water purification systems. As technological innovation continues, silver remains critical in the production of advanced electronics like smartphones and computers, owing to its superior electrical conductivity.

Silver’s antimicrobial properties also make it a key material in medical tools and coatings. As new discoveries emerge, silver’s application across multiple sectors continues to expand, driving demand in global markets.

Unless the world unplugs, the demand for silver will continue to rise.

Sources:

Silver and gold’s staggering ascent during German hyperinflation of the 1920’s | MINING.COM

Seeking Alpha | Stock Market Analysis & Tools for Investors

4 Factors That Drive Silver Demand | INN

Silver in Water Purification | Silver Institute 

Convert Your Savings or Retirement Account to Silver

Start Today

Featured Silver Assets:

Silver American Eagle
U.S. Mint

Silver British Britannia
Royal Great Britain Mint

Silver Canadian Maple Leaf
Royal Canadian Mint

100g Valcambi Silver Bar
Suisse Mint

View All Silver Products

Suggested Reading for Silver:

Is Gold Better Than Silver or Vice Versa?

Why Silver?

Silver's 2024 Outlook

How to Buy Gold or Silver & Have it Directly Delivered to You

How Does a Gold IRA/Retirement Account Work?

How Does a Silver IRA/Retirement Account Work?

Direct - 2024-09-30T164514.678

Economic Red Flags

Kamala Harris’s economic policies are coming under intense scrutiny, especially from those concerned with retirement savings. While Harris touts’ relief for working families, critics, including The Washington Post, have labeled her platform a "populist gimmick" with potentially devastating consequences for the broader economy. Her focus on taxes and regulations could spell disaster for retirement savers, putting their hard-earned savings at risk. In an era of already high inflation and rising national debt, a Harris presidency could accelerate economic instability​(World Gold Council)​(Invesco).

Higher Taxes and Increased Regulations

Financial experts warn that a Harris administration could usher in a wave of new regulations, drastically increasing costs for businesses. Sidney Curry, president of BCH Holdings, warns that these increased costs will inevitably be passed on to consumers, shrinking purchasing power and hitting retirees the hardest. "Retirement savers will find themselves spending significantly more on essentials like energy, gas, and groceries," he said. Furthermore, Harris’s support for rent control could crush real estate investments, while her proposed increase in corporate tax rates—from 21% to 28%—could wipe out retirement account gains. If stock prices plummet, it will devastate 401(k) accounts, leaving retirees with diminished nest eggs at a time when inflation is already eroding the value of their savings​(INN). Higher income taxes could further discourage contributions to retirement accounts, and increased capital gains taxes would chip away at retirees' investment income​(Invesco).

Social Security and Medicare in Jeopardy

Americans have long been worried about the solvency of Social Security, with some experts predicting the fund could run dry by 2035. Harris has pledged to expand Social Security and Medicare, but doing so would require steep tax hikes, particularly on high-income earners. The Congressional Budget Office already warns that Social Security's trust funds will be exhausted within the next decade, and Harris's plans could accelerate that depletion. Her Medicare-for-All stance also risks destabilizing private insurance markets, potentially forcing millions of Americans into a government-run system that some fear will be rife with inefficiency and poor care. Increased taxes to fund these programs would place even more strain on retirement savings, leaving fewer resources available for personal financial security in old age​(World Gold Council)​(INN).

Tax Policy: A Threat to Wealth Management

For wealthier retirees, Harris's tax plans could be catastrophic. The expiration of Trump-era tax cuts, combined with her proposal to raise the personal income tax rate for individuals earning over $400,000, could leave retirees facing a 39.6% tax rate on their earnings. But the real danger lies in her plan to treat capital gains and dividends as regular income for high-net-worth individuals. Since many retirees depend on capital gains as a primary source of income, these new tax policies could result in massive tax bills, significantly eroding the value of retirement investments. Experts warn that retirees who rely on investment income will face a perfect storm of rising taxes and falling returns​(Invesco)​(INN). Additionally, Harris's push to raise estate taxes could lead to substantial losses for those planning to pass on wealth to their heirs, further complicating retirement strategies​(World Gold Council).

Price Controls and Regulatory Overreach

Harris’s promises to combat inflation by imposing price controls on essential goods may sound appealing, but critics argue it could lead to dangerous shortages. The last time price controls were attempted in the U.S. was in the 1970s, which resulted in widespread supply issues and skyrocketing black-market prices. Kevin O'Leary of Shark Tank has gone so far as to call Harris's economic plans a recipe for disaster, likening them to the failed policies of Venezuela and North Korea. "This is a path straight to economic collapse," O'Leary warned​(INN)​. Harris's claim that corporate greed is the primary driver of inflation is not supported by data, and her plans could make the economic situation far worse, leaving retirees vulnerable to skyrocketing prices while their retirement funds lose value​(INN).

Middle-Class Tax Relief: A Mirage? 

While Harris promises tax relief for the middle class, her plans are fraught with risks. The expanded child tax credits she proposes could add to the national debt, which has already ballooned past $35 trillion, fueling more inflation. Economists like Mark Zandi from Moody’s Analytics caution that these measures, if not properly funded, will only push inflation higher, further eroding retirement savings and increasing living costs for retirees​ (World Gold Council)​(Invesco). If inflation continues to climb unchecked, the purchasing power of retirement savings could plummet, forcing retirees to dip into their savings faster than expected and risking financial insecurity in their later years.

Conclusion: A Dangerous Road Ahead for Retirement Savers

A Harris presidency could lead to severe consequences for those preparing for or already in retirement. Her 'economic justice' platform, which calls for expansive government spending, could bring more inflation, recession, and mounting national debt. These factors, combined with skyrocketing taxes and overregulation, are likely to create a hostile environment for retirement savings. Advisors warn that the time to act is now—before the election—to protect retirement funds from the potential fallout. Safeguarding wealth with a Gold IRA could be a critical strategy to preserve the value of your assets during a Harris administration. Contact us today at 844-977-GOLD(4653).to learn more about securing your financial future.

Sources:

  1. Nasdaq
  2. Yahoo Finance
  3. The Hill
  4. The Washington Post
  5. Yahoo Finance

Harvard Gold Group, HGG

Specializing in Physical Gold & Silver Delivery

 Private Direct Delivery    |    Precious Metals IRA/Retirement Accounts

HGG is America’s #1 Conservative Gold Company, as seen on 660AM The Answer with Mark Davis, The Babylon Bee, Not The Bee, The New York Sun, and more. Exceptional customer service and value are the top priorities of Harvard Gold Group (HGG).

HGG is BBB-accredited, holds 5-star ratings across the board, and provides free consultations and metals overviews. We offer tax-free purchases, free 2-day shipping, the best pricing, and direct access to our co-owners, who have over 15 years of experience specializing in precious metals, moving over a hundred million dollars into tangible assets for people's IRAs/retirement accounts and for direct delivery. Customers enjoy lifetime account care and a straightforward buyback program without hassle or liquidation fees. 

You can move almost any type of retirement account into a physical precious metals IRA. Retirement accounts like IRAs, 401Ks, Pension Funds, TSPs, 403Bs, Inherited accounts, and more. Harvard Gold Group offers 100% free rollovers. Qualify for up to 10 years. Qualifying purchases can also receive up to $15,000 in free metals match, delivered to your door or location of your choice.

Following years of hard work, the last concern you want to worry about is the risk of not being diversified. At Harvard Gold Group, we’re here to answer all your questions with no pressure. We make it easy to buy and easy to sell.

Get your FREE gold & silver investment guide today by filling out the request form below or call us today @ (844) 977-GOLD.  Learn more at harvardgoldgroup.com

Copy of Mark Davis Landing Page Photos (2)

Protect Yourself Against These Events by Hedging with Gold & Silver

REQUEST A FREE GUIDE

*We Respect Your Privacy & Do Not Sell Your Information*

Your Name(Required)
This field is for validation purposes and should be left unchanged.

Article by Harvard Gold Group

Source: U.S. Bureau of Labor Statistics
Source: Dec 30, 2023: https://www.resumebuilder.com/due-to-inflation-1-in-5-retirees-likely-to-go-back-to-work-this-year/

Hudson Institute senior fellow Rebeccah Heinrichs discusses the number of serious threats the U.S. faces on 'Varney & Co.'

  • Heinrichs: De-escalation is the Biden administration’s goal. The goal, however, should be to enable Israel to destroy these munitions, these weapons facilities, and Hezbollah’s ability to continue conducting terrorist activities against Israel, U.S. forces in the region, and our allies. That should be the primary focus. If the main objective is to pressure Israel to de-escalate, it will only lead to further escalation from Iranian proxies, particularly Hezbollah.
  • Heinrichs: Two bipartisan reports have issued the same warning: The threats against the United States are the most serious and challenging since 1945. China, Russia, North Korea, and Iran are collaborating to harm the U.S. and our allies.
  • Heinrichs: The United States of America must understand that this is a profound threat. We are in the most dangerous time; we need to reboot the defense industrial base. We require more shipyards to produce more ships. The Chinese can build more ships in a year than the U.S. can in ten years. We must dispel the notion that diplomacy cannot replace power—it cannot.
  • Stuart Varney: It will take time to build the necessary shipyards and munitions; this cannot be done in just a few years. It demands a long-term commitment.
  • Heinrichs: Freedom must matter more to us than free trade. This means that the United States must operate from the premise that we must fight for American ascendancy against this rising axis. This commitment must start from the top down: through our trade policies, industrial policies, technology policies, prioritization of innovation, and a focus on making the U.S. more sovereign. We need to rely less on our adversaries.

Story by Stuart Varney & Rebeccah Heinrichs - 4 min Video - bullet points added by HGG https://www.foxbusiness.com/video/6362394725112

 

Protect Yourself Against These Events by Hedging with Gold & Silver

REQUEST A FREE GUIDE

Direct - 2024-09-19T164049.529
  • The start of the Fed’s rate-cutting cycle means interest rates are coming down and the dollar will start to wane, said GraniteShares Advisors founder Will Rhind.
  • “That’s good for gold,” he said in an interview. “The next kick-up for gold will be if there’s a sense that we’re heading into recession, and the fear factor comes out and people need to start buying gold as a hedge.”
  • Gold prices have broken out dramatically this year, soaring more than 24% to successive records. While the rally at the start of 2024 was underpinned by emerging market demand — particularly from central banks and Asian consumers and investors — the focus in recent months has shifted squarely to the Fed, and the outlook for the US economy.

(Bloomberg) -- Gold pulled back from a record high after Federal Reserve Chairman Jerome Powell signaled policymakers aren’t in a rush to aggressively lower interest rates following Wednesday’s half percentage point cut by the US central bank.

Gold, which tends to benefit from lower rates, rose as much as 1.2% to $2,600.16 an ounce before erasing gains after Powell said no one should see this as a “new pace” at his press conference. Projections released after the Fed’s two-day gathering showed a narrow majority — 10 of 19 officials — favored lowering rates by at least an additional half-point over the central bank’s two remaining meetings this year.

The start of the Fed’s rate-cutting cycle means interest rates are coming down and the dollar will start to wane, said GraniteShares Advisors founder Will Rhind, whose investment firm manages a gold-backed exchange-traded fund.

“That’s good for gold,” he said in an interview. “The next kick-up for gold will be if there’s a sense that we’re heading into recession, and the fear factor comes out and people need to start buying gold as a hedge.”

Policymakers indicated in their Wednesday statement that they now see the risks to employment and inflation as “roughly balanced.” The Fed chief also said the economy is “basically fine” and expressed confidence that the job market can avoid the rise in unemployment seen in some past fights against inflation.

Aggressive Move

“The Fed moved aggressively this meeting in response to their dual mandate, but does not indicate the Fed is expecting a recession,” said Jay Hatfield, chief executive officer of Infrastructure Capital Advisors. “We believe gold is likely to grind higher as global interest rates continue to drop. So we would be inclined to add” long positions in gold.

Spot gold was down 0.7% to $2,552.77 an ounce at 4:12 p.m. in New York.

Gold prices have broken out dramatically this year, soaring more than 24% to successive records. While the rally at the start of 2024 was underpinned by emerging market demand — particularly from central banks and Asian consumers and investors — the focus in recent months has shifted squarely to the Fed, and the outlook for the US economy. Non-yielding bullion usually benefits in a low-rate environment, and recessionary worries tend to drive investors to seek safety in gold.

Gold, Treasuries and the S&P 500 Index have all typically risen as the Fed starts lowering rates, according to a Bloomberg News analysis of the past six easing cycles going back to 1989.

Wednesday’s rate cut caps a period of flux in the gold market, as some analysts have pointed to a return to more traditional trading patterns, and in particular to gold’s longstanding tendency to rise and fall in the opposite direction to real yields. That relationship had broken down in recent years, as gold remained historically elevated even as rates soared — with prices supported instead by huge central bank purchases, as well as surging demand from investors and consumers in Asia.

In recent months, there have been signs of western investors jumping back into the gold market as bets mounted that the Fed was about to pivot. Holdings in gold-backed ETFs have risen for ten of the past 12 weeks, while long-only gold positions in Comex gold futures are hovering near the highest in four years.

Story by Walter Russell Mead - Redacted shorter to keep to important points and bullet points added by HGG https://www.wsj.com/opinion/u-s-shrugs-as-world-war-iii-approaches-devastating-bipartisan-report-716bda71 

Protect Yourself Against These Events by Hedging with Gold & Silver

REQUEST A FREE GUIDE

Direct - 2024-09-17T153059.545
  • China, Russia, and Iran are stepping up their attacks on what remains of the Pax Americana and continue to make gains at the expense of Washington and its allies around the world.
  • In the recently released report by the Commission on the National Defense Strategy: The U.S. faces the “most serious and most challenging” threats since 1945, including the real risk of “near-term major war.” The report warns: “The nation was last prepared for such a fight during the Cold War, which ended 35 years ago. It is not prepared today.”
  • This new alignment of nations opposed to U.S. interests creates a real risk, if not likelihood, that conflict anywhere could become a multithreaded or global war.”
  • To summarize, World War III is becoming more likely in the near term, and the U.S. is too weak either to prevent it or, should war come, to be confident of victory.

The news from abroad is chilling. Washington Post columnist David Ignatius reports from Kyiv that Ukraine is “bleeding out” as its weary soldiers struggle against a numerically superior Russia. The New York Times reports that China is expanding the geographical reach and escalating violence in its campaign to drive Philippine forces from islands and shoals that Beijing illegitimately claims. And Bloomberg reports that Washington officials are fearful that Russia will help Iran cross the finish line in its race for nuclear weapons.

These stories, all from liberal news outlets generally favorable to the Biden administration, tell a tragic and terrifying tale of global failure on the part of the U.S. and its allies. China, Russia and Iran are stepping up their attacks on what remains of the Pax Americana and continue to make gains at the expense of Washington and its allies around the world.

What none of these stories do is connect the dots by analyzing the consequences of repeated American failure on the widely separated fronts of the international contest now taking place. To see what this all means and where it is leading, we must turn to the recently released report of the Commission on the National Defense Strategy. This panel of eight experts, named by the senior Republicans and Democrats on the House and Senate Armed Services committees, consulted widely across government, reviewing both public and classified information, and issued a unanimous report that, in a healthy political climate, would be the central topic in national conversation.

The bipartisan report details a devastating picture of political failure, strategic inadequacy and growing American weakness in a time of rapidly increasing danger. The U.S. faces the “most serious and most challenging” threats since 1945, including the real risk of “near-term major war.” The report warns: “The nation was last prepared for such a fight during the Cold War, which ended 35 years ago. It is not prepared today.”

Worse, “China and Russia’s ‘no-limits’ partnership, formed in February 2022 just days before Russia’s invasion of Ukraine, has only deepened and broadened to include a military and economic partnership with Iran and North Korea. . . . This new alignment of nations opposed to U.S. interests creates a real risk, if not likelihood, that conflict anywhere could become a multithreaded or global war.”

Should such a conflict break out, “the Commission finds that the U.S. military lacks both the capabilities, and the capacity required to be confident it can deter and prevail in combat.”

To summarize, World War III is becoming more likely in the near term, and the U.S. is too weak either to prevent it or, should war come, to be confident of victory.

A more devastating indictment of a failed generation of national leadership could scarcely be penned.

This is not, or should not be, a partisan issue. No recent president and no party escapes responsibility for our current plight. Red and blue America will suffer equally if the global slide toward war continues unchecked.

Even more appalling than the report is the general indifference with which it has been received. Aside from a few honorable exceptions (including a Wall Street Journal opinion piece by Shay Khatiri and Senate Minority Leader Mitch McConnell’s clear-sighted advocacy), the commission’s report sank like a stone. There has been no uproar in the press, no speechifying by presidential candidates, no storm on social media, no sign that the American political class takes the slightest interest in the increasing fragility of the peace on which everything we cherish depends.

That isn’t new. Congress, much of the media and public opinion at large have ignored alerts from respected defense leaders at least since Robert Gates warned almost 12 years ago of the dangerous consequences of defense cutbacks. The commission’s report is now warning that the long-deferred bill is coming due.

If history teaches anything, it is that decadence this deep, carried on this long, entails enormous costs. Our adversaries’ conviction that the inattention of a flabby political class is bringing the Pax Americana to an inglorious end is a key reason why nations as suspicious of one another as China, Russia, Iran and North Korea have chosen this moment to make common cause against us.

The prophet Ezekiel spoke about the duty of the watchman on the city wall to sound the trumpet when enemies approach. The Commission on the National Defense Strategy has fulfilled its mission. But judging from the indifference with which its report has been greeted, more and louder trumpets need to sound. Not since the 1930s have Americans been this profoundly indifferent as a great war assembles in the world outside, and not since Paul Revere traversed the dark country lanes of Massachusetts have Americans more urgently needed to rouse themselves from sleep.

 

Story by Walter Russell Mead - Redacted shorter to keep to important points and bullet points added by HGG https://www.wsj.com/opinion/u-s-shrugs-as-world-war-iii-approaches-devastating-bipartisan-report-716bda71 

Protect Yourself Against These Events by Hedging with Gold & Silver

REQUEST A FREE GUIDE
Scroll to Top