Editor’s Commentary: Our primary allegiance in journalism is to the truth. The article below from our premium news partners at The Epoch Times does a fine job of highlighting both the positives and negatives anticipated for gold this year. That’s important to us because even though our main sponsors specialize in precious metals, we would never publish anything as news or commentary that spreads falsehoods for the sake of driving gold sales.
With that said, my personal opinion is that precious metals are the smartest money right now for protecting wealth and retirement from attacks on multiple fronts. We did not accept precious metals sponsors before mid-2021 because before then, I didn’t see a need. Even during the early stages of Pandemic Panic Theater I remained confident that Americans didn’t need to shift large portions of their portfolios to precious metals. Things have obviously changed now, which is why we vetted out 28 precious metals companies to see who was donating to Democrats, who was working with the Chinese Communist Party, and who was doing the bidding of the World Economic Forum. Out of those 28, we only found three we could consider to be true America First companies. With that said, here’s Fan Yu’s article about the future of gold…
After a tumultuous several months, gold prices have enjoyed a decent run up in Q4 2022. Recent price movement was helped by the dollar’s retreat, hopes that the Federal Reserve will slow down its aggressive monetary tightening, and renewed demand for the metal from emerging markets.
Is this the beginning of a multi-year bull market in gold? To be fair, gold investors have endured years of underperformance. Gold closed 2022 on two consecutive down years.
The World Gold Council, in its 2023 outlook report, said gold will enjoy a “stable but positive performance” in the year ahead. It’s not an outright bullish view, as central banks around the world will continue to maintain a strong bias to fight inflation—and keep interest rates high, a deterrent to gold price increasing. But recession is near inevitable in many economies. Gold typically performs very well in classical recessionary economic environment.
Another supportive fact pattern to a rebound in gold price is continued decline in the U.S. dollar. The World Gold Council’s research indicates that peaking dollar value has historically been positive for gold, with a positive spot price movement during the 12 months after the dollar has peaked.
Gold investors should pay close attention to the dollar. Gold’s approximately 10 percent price increase during the fourth quarter of 2022 very closely tracked to the dollar’s decline during the same period.
Cooling inflation—and therefore rate-hike expectations—is only one factor going against the dollar. Another factor is improving expectations for economic growth outside the United States, such as in China and Europe.
China’s reopening will put further pressure on the dollar. Beijing during the last week of December announced the rollback of inbound quarantine in January. This measure is expected to boost the local economy and stimulate foreign investment in the country.
Geopolitical risk is another major determinant of gold prices. Political uncertainty and war makes gold a valuable tail risk hedge.
Saxo Bank’s Head of Commodity Strategy Ole Hansen recently predicted that gold will top $3,000 per ounce in 2023 due to “war economy mentality of self reliance and minimizing holdings of foreign FX reserves, preferring gold.” This coincides with another prediction that countries will move to invest in locking in energy and commodity resources as well as supply chain security. In addition to gold itself, Saxo is also bullish on junior gold miners.
No doubt this view has been informed by the ongoing war between Russia and Ukraine, and China’s continued saber-rattling against Taiwan. Russia’s largest bank—SberBank—on Dec. 26 announced launching a gold-backed digital financial asset, claiming that it offers an “alternative” investment amidst de-dollarization.
Central banks have been some of the biggest buyers of gold this year. In Q3 2022, central banks added a record 399 tons of gold, according to World Gold Council data. Among them, China has been one of the biggest buyers. Beijing is well known in its intentions to cut U.S. dollar dependency, and it had a front-row seat to Russia being locked out of the dollar-dominated global financial system, faced with price caps and sanctions against its energy exports and its overseas foreign exchange assets frozen.
There have been rumblings of BRICS nations (Brazil, India, China, Russia, and South Africa) and their allies banding together to develop a new reserve currency backed by commodities such as gold and oil. No such plans have been officially announced, but certain BRICS nations have been preparing to diversify away from the U.S. dollar for years.
Despite the positive backdrop, there are risks that gold will continue to underperform.
The worst-case scenario would include more interest rate hikes by the Federal Reserve and keeping monetary conditions tight despite an economic recession. However, this policy path would go against the Fed’s recent history and philosophy.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
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Here is the bottom line my friends, and this says it all: “If you do not have it in your possession, you don’t own it”. Always, always always purchase precious metals in small bar forms and do keep your purchase of them close to the vest. If you buy coinage because you believe they will be more fungible then you are paying a high price for that misconception. Not only are coins way over-priced with their high premiums, the dealers know you have bought into coins because they are pretty.
I try to have both. I do agree with your point. The counter argument is the coins are a lot harder to counterfeit and very few people will have the means to test bars. It’s why I try to have both, both sides of the debate make complete sense.
Hey. Gold was the best investment among all asset classes, exc maybe Real Estate, in 2022. I 2023 it will soar due to continuing inflation that will be accommodate by fed. and crypto collapse money looking to go somewhere. Rumple may be right exc gold bars at 2K+ an ounce is a little hard to barter with. Pre 1964 silver coins in good condition are not fakeable and easy to trade.
Gold one oz. coins and silver one oz. are the easiet to ‘turn’. I wouldn’t trust a ‘bar’ over a solid ‘coin’.