Bullion investors can be a mixed bag of sorts. While some keep a close eye on the daily price, others may not pay attention at all. While many have it to speculate, others have it to protect. One thing everyone can agree with today is the price. What exactly is going on? As a nationwide purveyor of precious metals with decades of experience, we can confidently say if you haven’t already – buckle up!
One thing is clear: something doesn’t quite feel right where the gold and silver price is today relative to the economy. The vast majority of Americans know the current state of the economy (otherwise known as Bidenomics) is a huge problem. With trillions of new dollars being printed and high inflation around every corner, why are metals not at all-time highs? Don’t be fooled by the price of gold!
This confusion shared by millions of bullion investors is understandable. For many, their confidence in the metals is shaken, and rightly so. But for a select class of bullion investors, the timing for the price correction we are seeing is perfect. While global central banks and one-percenters are filling their coffers, millions of bullion investors are left scratching their heads and filled with doubt.
Gold and silver bullion has a long history as a hedge against inflation. The price bullion investors pay is complicated and, more times than not, will leave its investors frustrated. Here are a few theories and truths that may explain why and where we are.
- Wall Street is NOT in the bullion business! When you put your money into bullion, you are taking your money out of the system that feeds Wall Street.
- Wall Street companies rarely, if ever, hedge with precious metals and instead hedge with US dollars.
- Bullion is technically not an investment, although many pontificate otherwise. It does not produce income, interest, or pay any dividends.
- Precious metals prices are driven by supply and demand. With the impending bank implosion, you should expect a significant move to higher prices.
- Inflation doesn’t necessarily mean the price of precious metals will increase. A look back in time proves this. (see 2022)
- The time to buy precious metals is when the price pulls back, dips, or corrects. Most uninformed bullion investors buy the hype at the top.
- When you buy gold or silver bullion, we advise a price point you are comfortable with, whether the price goes up or down. A time-tested strategy is cost-averaging.
Why is the Price in Decline?
With the strength of the US dollar as of late, gold and silver are in decline. As mentioned, Wall Street companies hedge with dollars, not gold and silver. When compared to other currencies worldwide, the USD is king. And at the rate the US government is printing USD`s and inflating it tells you what you need to know about other countries’ currencies.
In conclusion, Don’t be fooled by the price of gold! This is your opportunity to protect your assets from the future calamity that awaits the US economy. Take advantage of today’s prices while you can.