Gold Sets a Record | The Gold Standard 2348

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Learn more about how to preserve your wealth with the latest episode of The Gold Standard! Join hostess Jennifer Horn and her guest Ken Russo, the SVP of the Midas Gold Group as they discuss how gold and silver are doing great things. “How do you secure your financial future in today’s climate of uncertainty and instability?” Jennifer and Ken offer solutions and good reasons why you should act today.

Gold Spot is over $2,000

Gold surpasses the $2,000 milestone! Fueled by Federal Reserve expectations of a peak in interest rates, gold’s meteoric rise reached a three-week high at $2,007.29. Amid a weakening dollar and near two-month lows in US Treasury yields, gold surged 1.2% to $1,999.92 per ounce. Fueled by interest rate hikes, the outlook for gold is bullish. There is an ongoing balancing act between geopolitical tensions, inflation signals, and gold’s allure.

Our Financial Mess

While our fractional reserve banking system teeters on the edge of the abyss, central bankers are scrambling to prepare for a monetary reset. Jennifer Horn and Ken Russo discuss how our financial ecosystem is fragile and uncertain. Decades of prolonged imbalances are coming home to roost.

The Root Cause

President Nixon’s groundbreaking address to the nation in 1971 set the stage for the financial chaos that would follow us into the 21st Century. Nixon “temporarily” suspended the convertibility of the dollar into gold, officially ending the Bretton Woods system. This landmark decision severed the last ties between major world currencies and precious metals, ushering in the era of fiat money.

President Nixon’s decision to suspend the convertibility of the US dollar into gold in 1971 marked a significant turning point in the global monetary system and played a pivotal role in the widespread adoption of fiat currency. Before this event, the international financial system operated under the Bretton Woods Agreement, where major currencies were pegged to the US dollar, and the US dollar was convertible to gold at a fixed rate. Nixon’s move, commonly known as the “Nixon Shock,” dismantled the gold standard and introduced a fiat currency system, where money’s value is not directly linked to a physical commodity like gold. It’s not linked to anything except the government’s word and confidence.

This decision had far-reaching consequences, leading other countries to abandon the gold standard and transition to fiat currencies. The move towards fiat currency provided more flexibility for governments to manage their monetary policies. Still, it also introduced challenges related to inflation, currency fluctuations, and the global financial system’s stability.

Preserving Wealth with Precious Metals: Gold and Silver’s Reliability

In times of economic uncertainty, the reliability of precious metals like gold and silver becomes increasingly evident. The rise in the value of gold and silver isn’t solely a reflection of their intrinsic worth but is also indicative of the diminishing purchasing power of the US dollar. Consider this scenario: if you held $700 in currency for ten years, its real value would significantly erode, leaving you with the equivalent of $300 in purchasing power. In contrast, holding $700 worth of silver bullion coins could prove far more resilient over the same period. The spot price of gold and silver has an inverse relationship with the value of the US dollar, making these precious metals a reliable hedge against inflation, currency devaluation, and geo-political tumult. As economic uncertainties persist, understanding the enduring value of gold and silver becomes crucial for those looking to safeguard their wealth and preserve their buying power.

The Ripple Effect of China’s Downgrade

Moody’s recent decision to revise China’s credit ratings from stable to negative has sent ripples through the global financial landscape. The downgrade highlights Chinese authorities’ difficulties in bolstering debt-laden local governments and state-owned enterprises. As the world’s second-largest economy grapples with a deepening crisis in the housing market, local government debt concerns, slow global growth, and geopolitical tensions, Moody’s predicts a slowdown in China’s annual GDP growth to 4.0% in 2024 and 2025. While China insists its economic rebound remains on track, the interconnected nature of the global economy suggests that the challenges faced by the Asian giant will have far-reaching implications for economies worldwide. As the Chinese Government deploys various measures to stimulate its economy, the rest of the world continues to watch with some concern.
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