Recession Protection | The Gold Standard #2222

https://www.midasgoldgroup.com/

The timing for this episode couldn't be better. The topic of conversation is recession protection.

First, let's take a moment to consider recent events. Inflation hit record highs last May. You can feel the pressure building. Bubbles are starting to pop. The Dow, the S&P, and the NASDAQ all fell. It was the worst day since the early 2020s.

The Keynesian monetary policy playbook that lawmakers and central bankers follow ensures the boom-and-bust cycle of the economy. Current projections are that the recession will hit in the first half of 2023. Expectations are that the market will fall even further. There's no question that a recession is coming. It's just a matter of when it will happen.

In this program, we discuss practical steps you can take today to strengthen your financial position.

Major Wall Street firms Goldman Sachs and JP Morgan warn investors that the economy will worsen. They expect stocks to plunge another 20% as an inevitable recession approaches. Accelerating market selloffs and rising interest rates make a recession likely within the next 12 months.

Remember that stagflation happens when inflation continues after the economy flatlines. The environment is similar to the 1999-2000 dot-com bubble. The fate of investments and retirement accounts doesn't look good. The chances of stagflation are rising.

Ominous warning signs continue to remind us to diversify financial portfolios. Terrible news indeed, and more coming our way during the months ahead, but the message is not all about doom and gloom. There is still time to take action. Begin protecting your nest egg.

Most of us are not prepared to weather the approaching economic storm. People who have lived through economic downturns remember the pain. These survivors are more likely to have planned diversification into their portfolio early on. Investing in alternate asset classes is an excellent way to diversify because of their isolation from traditional asset classes, and they provide a reliable hedge again inflation. Precious metals are the most practical alternative asset class because there are many ways to start owning precious metals.

Typically, bullion is purchased in 1-ounce increments. Consider that the spot price of gold hovers around $1,800 while one ounce of silver is around $22. Gold, silver, or palladium these rare commodities that hold their value during economic decline. During a financial crisis, they'll hold their value and then some.

What happens when the market crashes? Downturns in the market are not surprising. Historically, there's a slight downturn about every few years. Every two years, there's a correction of 10%. But what we have been discussing all this time is much more than an economic slump or downturn. The approaching storm they refer to is more like retribution for the decades of greed on Wall Street and the Fed's continuous mishandling of monetary policies.

We haven't seen such a long streak of heavy losses in decades. When there's a market correction, it's a guess how long recovery will take. On average, the end of a bear market takes 95 days. But in these uncertain times, it could take much longer. Think of a market correction in today's environment as the pin that pricks the everything bubble. It could take years for investors and retirees to recoup their losses.

Ken talks about the tremendous vision of Gold Switzerland's Egon Von Greyerz and his important message about gold. Egon von Greyerz and his associates were sounding the alarm in 2002 when global economic risks were uncomfortably high, with no remedy in sight. Ever since then, they have made substantial investments in physical gold. Even at that time, they were recommending to their client's allocations of physical gold between 25% to 50%.

Gold prices act conversely to the stock market. The precious metal has proven its stability through thousands of years of history. Investment professionals know gold as a store of reliable value with a fixed quantity. Investors will flock to gold during economic strife because of its recession-proof character.

Ken shines a spotlight on his favorite gold bullion product, the Gold American Eagle. The Gold American Eagle is one of the world's most recognized prized government-backed bullion products. The Gold American Eagle is not only a great coin but the largest gold coin also produced by the US Mint. It has an incredible history.

At the end of 1974, after 40 years of abandonment, President Ford returned us to legalized private ownership of gold. After witnessing the global successes of the Gold Krugerrand and Canada's Gold Maple Leaf programs, leadership thought the United States should have its own gold and silver bullion coins. After all, the US has the largest holdings of gold in the world. The Gold Bullion Coin Act of 1985 established a truly competitive American Gold bullion product, the Gold American Eagle.