Turning Paper into Gold | The Gold Standard #2224

https://www.midasgoldgroup.com/

Dave Deno talks with Ken Russo, VP of the Midas Gold Group, to discuss paper assets that can be used to own physical gold. Moving paper assets to physical gold you can hold is an important topic as people worry about persistent growing inflation, interest rate hikes, and the discomfort of not knowing what will happen next.

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban customers for a market basket of consumer goods. Until now, the CPI has never gained more than eight point three percent since strangling inflation of 1982. Food prices have risen over ten percent since last year.

Since inflation is enemy number one for the Fed, though God knows why, they do everything in their power to create it, aggressive rate hikes are on the menu for the foreseeable future. Raising interest rates to control inflation without triggering a massive recession is an impossible balancing act.

Rising interest rates make it more difficult to borrow money; consequently, people make do with what they have. Most consumers start spending less because they want their money to stretch further. Spending less helps ease inflation. That’s why the Fed is getting increasingly aggressive with raising interest rates. Spurred on by higher-than-expected inflation figures in May, the Fed made the steepest rate hike since 1994. There will be more rate hikes to come.

Rising interest rates are bad: they have a huge impact on everything that involves borrowing money. People can expect higher credit card payments, higher mortgages (hopefully you have a fixed-rate mortgage), and increased worry over how to make ends meet. The average person cannot afford to think about savings and investments.

A recession is particularly harsh on people who are close to retirement or have entered retirement. Some people might have to return to work because they won’t have enough to live on.

Ken talks about the uncertainty of today’s market and the accuracy of what’s being communicated to the public. It is a mystery how the government continues to fund its deficit spending. Remember, our debt is surpassing our Gross Domestic Product (GDP), and our GDP is declining. It’s one big question mark. One thing is certain, more economists are predicting the odds of a recession happening are getting higher. Billionaires like Elon Musk and Bill Gates are joining the chorus warning of a recession to hit the end of next year.

Gold has a reputation for being a safe-haven investment for good reason. You can’t compare gold and stocks, especially now that the market resembles more like a casino than a viable place to invest. There is an inverse relationship between precious metals and stocks. When stocks fall, the spot price of gold tends to rise. Gold has yet to reflect what has gone on with out-of-hand currency printing and inflation.

$1,800 is not a bad spot price for gold but you haven’t seen anything yet. There are expectations that the precious metal will make huge increases as the economy continues struggling. It’s not a surprise that gold holds its value in a recession. As a reliable store of value, there’s nothing like gold and silver to protect long-term savings and preserve wealth.

In ancient times, alchemists tried to find ways to transform base metals into gold. It never worked; an alchemist settled for someone who transforms things for the better. In that sense, we can all be an alchemist. Moving some of your paper assets into gold is a way to strengthen your portfolio through diversification. A retirement account, for example, is a paper asset that can be rolled over into a self-directed Gold IRA.

Physical gold is gold you can hold. Gold is sound money because of its long-standing value demonstrates its stability. Gold ETFs are different. They’re paper and not a tangible asset. Examples of physical gold are gold bullion bars, gold bullion coins like the Gold American Eagle, or numismatic coins like the Saint-Gaudens Double Eagle.

The one-ounce Gold Canadian Maple Leaf is the second-oldest coin in the precious metals market. The first modern bullion coin released was the South African Krugerrand which debuted in 1967.

Introduced in 1979, the Canadian Gold Maple Leaf is a legal tender in Canada with a face value of 50 Canadian dollars. It’s issued annually by the Canadian Government and produced by the prestigious Royal Canadian Mint. At .9999 purity, the 24-karat gold, the Gold Maple Leaf is one the purest official bullion coins in the world, is IRA eligible.
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