Fall 🍁 2022
In 1789, John Wesley’s classic message on Financial Stewardship called, “The Use of Money.” Gave the greatest lesson on money management…
“Earn as much as you can. Save as much as you can. And give as much as you can.”
This principle ensures; Prosperity, protection and peace of mind.
The key is to Save/Invest in assets that build wealth and protect assets in every economic environment.
So far in 2022, falling stock & bond markets have wiped out more than $46 trillion in wealth from U.S. households
Roaring inflation. Soaring interest rates. Slowing economy. Financial bubbles bursting. Make it a perilous time to be an investor today.
Stewardship requires owning assets with real, tangible value that will become more valuable as dollars get cheaper… things like gold and real estate. (land)
In fact, gold & silver were created so that we would have safe and predictable way of saving money in a form that would not depreciate over time.
Fiat money – when there is nothing tangible backing the paper currency – devalues savings through currency debasement and inflation.
“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. Deficit spending is simply a scheme for the hidden confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. Gold is a currency. It is still, by all evidence, a premier currency, where no fiat currency, including the dollar, can match it.” – Federal Reserve Chairman, Alan Greenspan. ( 1987-2006)
Gold has maintained it’s value over time better than any other asset on earth. That makes it the best place to store your wealth. It’s value cannot be debased by governments who print paper money at will, making their currency worth less each year.
In fact, since the Treasury Department removed gold as backing for the U.S. dollar in 1972, even though the Constitution declared gold and silver were the only form of money Allowed by law. The U.S. dollar has lost over 90% of it’s purchasing power, while gold has increased 58 times in value.
“With the exception only of the gold standard, all governments of history have used their exclusive power to issue money to defraud and plunder the people.” – Frederich Hayek. Nobel Prize winner for economics.
No truth, No Trust.
In 2021 the Chairman of Fed said that inflation was “transitory” caused by supply chain issues due to the pandemic, and not the truth… That inflation is caused by excessive money creation.
Today, the Fed says it can stop inflation by raising interest rates to 3% to 4%. When, history shows that inflation has never been tamed without raising interest rates above the official inflation rate.
The Fed won’t stop Inflation, but they will Crash the hyperinflated financial markets, and the bubble economy that was built on easy money and debt. In fact, we’re already in a recession with high inflation. (stagflation)
If we look at all of the Fed tightening cycles since 1973, the central bank has never stopped tightening before the Fed funds rate was higher than the CPI.
Interest rates today need to be above the official CPI of 8.3% to slow inflation. But, if rates were to normalize relative to inflation, debt servicing costs would become a full-fledged budgetary crisis.
Fed Rate hikes will add trillions to the national debt. So far in fiscal 2022, the U.S. Treasury has paid out $471 billion just to fund the government’s interest payments. Without drastic cuts to outlays and/or increases in revenues, federal finances would enter insolvency.
“The inflation is going to be much worse than the 1970’s. The economy is going to be much weaker. And unfortunately, we won’t be able to put a stop to it like we did in 1980. We have no ability to raise interest rates because the country is completely insolvent. Even a small increase would cause a default.” – Peter Schiff.
Real inflation is over 17%, more than double the understated official CPI rate. Because, the government removed basic items like food and energy costs years ago, to hide true inflation and dilute CPI numbers. And contrary to what the Fed says, inflation is not going below 2% again.
In fact, the Federal Reserve creates booms and busts by artificially keeping interest rates below the nominal rate to stimulate borrowing and economic growth. And then raises rates leading to recession, to curb inflation caused by their own excessive money creation.
This is happening because of a faulty monetary system that will continue to cause bubbles, mis-allocations of capital, and greater and greater loss of purchasing power.
Trusting your financial future in government institutions.(Federal Reserve) that make untrue statements, is hazardous to your wealth.
“We have gold because we cannot trust governments.” ― President Herbert Hoover.
“Governments lie; bankers lie; even auditors sometimes lie. Gold tells the truth.” — Lord William Rees Moog. Vice-Chairman UK Board of Governors.
History shows that every fiat currency ever created has ultimately became worthless, after being printed into oblivion by the government that issued it.
People think today’s currencies will be the exception. But, the laws of economics and history say otherwise.
“Gold will be around, and will be money when the dollar, euro and the yuan are mere memories.” — Richard Russell.
“Gold has been prized over all else, in all ages, as a store of value that will survive the travails of life and the ravages of time.” — James Blakeley
“The great merit of gold is precisely that it is scarce; that its quantity is limited by nature; that it is costly to discover, to mine and to process; and that it cannot be created by political fiat or caprice.” — Henry Stuart Hazlitt. Economist, the Wall Street Journal.
“The global monetary system is in the final days of it’s existence. When the dollar cut it’s ties from gold in 1971, the end was inevitable. In the history of the world not a single monetary system built on such a foundation has ever survived. Our present system will not be an exception.” – Doug Tjaden.
Beware of Financial Deception.
“We’re not really in a recession.” – Fake economic news.
“The war in Ukraine, supply disruptions and profit hungry oil company’s are causing inflation.” – Corrupt politicians.
“Buy the dip, stock prices will recover soon.” – Greedy Wall Street advisors.
Bad counsel is especially hazardous to your wealth.
Economic Facts.
- A recession occurs after 2 consecutive quarters of negative economic growth, which happened in July.
- Inflation is caused by excessive government money printing.
- Stock prices historically decline for 3 years during recessions, lose half of their value and take an average of 10+ years to recover.
Keeping IRA/401 retirement- savings in risk assets ( stocks, bonds, mutual funds) that can lose half of their value during a market crash. Or having Savings in dollars (CD’s, money market accounts) that are guaranteed to lose 17% of their purchasing power each year due to inflation, is bad stewardship. And could devastate your IRA/401k value. Causing you to potentially outlive your retirement-savings.
Yet, history shows that most investors keep holding on to their sinking stocks, bonds and mutual funds all the way to the bottom. Don’t Be like most investors!
It takes years to build up a nest egg that will last you through retirement. And it can take just a few weeks to watch it get cut in half during a market crash.
Never forget that anything denominated in dollars (stocks, bonds, CD’s) loses value with each passing month. (inflation)
The time-tested asset that protects your savings against market calamity and dollar devaluation is physical gold & silver.
They are a crucial component in any truly balanced investment portfolio, regardless of economic conditions.
“Wise people are rewarded with wealth.” – Proverbs – 14:24.
Our founding fathers understood the principles of sound money and repeatedly warned of the dangers of moving away from gold and silver as the basis of our currency. They had integrity, and their timeless wisdom can still be trusted today…
“Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that that deludes them with paper money.” – Daniel Webster, signer of the U.S. Constitution.
“Paper money has had the effect that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of Fraud and Injustice.” – George Washington, 1st U.S. President.
“I sincerely believe… that the banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding, is but swindling Futurity on a large scale.” – Thomas Jefferson 3rd U.S. President.
In the last 2 year’s, Washington has spent $5.7 trillion on relief and stimulus packages, and just enacted another multi-trillion dollar spending bill, ridiculously called the “Inflation reduction act.” Then cancelled $500 billion in student loan debts. And where will that money come from?
They’ll print it, of course. And the value of the dollar and your savings will disappear even faster.
In fact, since 2009, the Federal debt has exploded from $8 trillion to $30 trillion dollars! This has hyperinflated the stock, bond and real estate markets, and created the largest bubbles in history, that are now beginning to burst.
This unpayable mountain of debt means that the Federal Reserve is not going to be able to print us out of the future recessions that are going to come, especially this next one.
That makes protecting your wealth with gold essential.
Gold is the only true safe harbor for your investments, and should be a major part of every investors portfolio. It is a necessity for wealth preservation during periods of monetary instability.
Financial advisors & economists have long recommended portfolio diversification. And that 10% to 20% of investors assets be devoted to gold and silver as Financial Insurance.
The respected firm Ibbotson Associates ( part of investment analytic giant Morningstar) found that investors who put 7.1% to 15.7% of their portfolios in precious metals enjoy superior risk-adjusted returns.
As gold shows virtually no correlation to stocks and bonds, meaning it can rise when paper assets fall.
Throughout history gold has been the most sought after form of asset protection. It’s easy to see why…
Gold is the most liquid financial asset in the world, and represents Financial security, privacy and independence.
Unlike a fiat currency, gold’s value can never be hyperinflated away. Unlike a bond, it can never default. And unlike a publicly traded company (stock) it can never go bankrupt.
In today’s uncertain times of record inflation, equity market declines, global unrest and the incredible erosion of the U.S. dollar. The prudent investor will place a significant portion of their assets into the safety of tangible investments.
Gold has been the foundation of wealth and a monetary base for centuries. It provides essential financial insurance; Proven protection from equity market declines, asset bubbles, global economic crisis and currency debasement. (inflation)
“Physical gold and silver are now, and have always been the ultimate financial insurance. They are a common-sense precaution and a necessary part of any wealth preservation plan. Investors and ordinary savers ignore this at their peril, and the failure to include precious metals in one’s portfolio is pure negligence.” – The Economist.
Crisis = Opportunity.
History shows that with every financial crisis, also comes a historic opportunity to build wealth.
Just as there is a time lag between the unprecedented pandemic Fed money printing in 2020, and soaring inflation today. History shows, there’s also a delay in golds response to inflation. It doesn’t immediately spike in price when inflation does…
But it always catches up! Gold rose 300% when inflation spiked into the mid-1970s. But its big spike didn’t kick in until a full year after that climb started.
During the stagflation decade of the 1970s, as paper assets (stocks, bonds) got clobbered by inflation, gold went on a tear rising 1,836%. Silver rose 1,689%.
In fact, over the last 50 years gold has been the best performing financial asset. Outperforming stocks, bonds, real estate and every other investment class by a wide margin.
Since 2001, gold has increased by 700%. An average return of nearly 35% per year.
Looking longer term, gold has risen almost 10,000% – from $20 to nearly $2,000 per ounce – since 1930, priced in America’s depreciating fiat currency 💵
That’s why, smart money today is using the dollar devaluation to make once in a generation profits in gold..
John Paulson, the billionaire hedge fund manager who executed the “Greatest trade ever” in 2007 said the opportunity is in hard money.
“The greatest opportunity today is to trade out of paper and digital assets and into hard assets. There is a very limited amount of investible gold compared to an ever-expanding money supply.”
Billionaire Ray Dallio said. “The recent fiscal and monetary stimulation of such magnitude is unprecedented during peacetime. “We’ve had a few such periods of extraordinary stimulus over the past century—all in times of economic depression, conflict, or both—and in all of them, gold saw triple-digit rallies.”
Renowned hedge fund manager & billionaire Paul Singer says that gold is currently one of the most undervalued assets…“The stock market may get cut in half, but this most undervalued asset is about to Surge. Gold is one of the most undervalued assets available and it’s worth multiples of its current price due to the financial debasement of money by all the worlds central banks.”
Billionaire investors believe the big upside in the decade ahead is in gold. And for good reason.
Based on historical charts going back to 1971, when gold became legal to own again, puts the gold price at $5,000 to $7,000/oz by 2026 ( #1 Aden forecast)
And time and again throughout human history, gold has been revalued to account for all excess currency in circulation. Today, to account for all the U.S. dollars printed by the Federal Reserve, gold would have to revert to $15,000 per ounce.
💴 $50,000 gold is likely once the monetary system returns to a gold standard -Kitco News. Renowned economist John Butler says, “As the world transitions to a gold standard monetary system, the price of gold will skyrocket to $50,000 per ounce. He believes, A gold standard is inevitable, as the U.S. loses its economic dominance and the world become multipolar.”
Only time will tell how high gold will ultimately go. But no matter how you look at it, gold should be the foundation of every investor’s portfolio. For wealth preservation, asset protection and capital appreciation.
Overvalued Equity markets and a monetary system overcome with indebtedness, is not a safe place to entrust your financial future. In today’s uncertain economic environment it’s wise to seek out proven assets in order to preserve and increase one’s wealth.
In times of crisis, gold is the safest investment that also has the greatest potential to increase your wealth.
It is also the ultimate hedge against geopolitical turmoil and financial market meltdowns.
Prudent investors are wisely diversifying their retirement-savings out of the unstable equity markets, into the safety of gold & silver for long-term appreciation and protection.
As gold values continue to rise against the falling dollar, there has never been a greater opportunity to safely grow your wealth and protect your assets from the ongoing dollar devaluation.
With gold currently trading at a fraction of it’s fiat currency value. This represents the last great buying opportunity in the world’s cheapest asset.
Gold offers unparalleled profit potential, a proven track record of appreciation, privacy and wealth preservation. It’s the perfect way to protect yourself against inflation and overpriced stock market.
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