Surviving the Economic Downturn: The Case for Tangible Assets | Silver Savior
As you glance across the financial landscape of April 18, 2024, it’s hard not to acknowledge the alarm bells ringing throughout the once steadfast bastions of the American economy. The concern I share today is urgent and deeply rooted in the current economic indicators that flash glaring warning signs for anyone paying attention.
It’s no secret anymore that the US debt market has grown to precarious levels, creating a scenario wherein the government’s debt service obligations necessitate exponentially increasing borrowing. Examining the US 10-year Bond Yield, which currently stands at 4.636%, gives us insight into investors’ diminishing confidence in the government’s ability to manage its burgeoning liabilities without resorting to the printing press.
This phenomenon coincides with a critical decrease in the Federal Reserve Money Supply indicator, counterbalanced by a rise in the velocity of money ratio, which leaps from 1.128 in 2020 to 1.348 and climbing. This increased velocity signifies more money changing hands, a harbinger of intensifying inflation that erodes the dollar’s purchasing power.
Against this backdrop, today’s spot market prices for precious metals are particularly revealing:
– Gold: $2,378.76
– Silver: $28.2425
– Palladium: $1,025.312
– Platinum: $937.88
Gold, that eternal sanctuary of value, continues to soar, underscoring a flight to safety and solidifying its role as a hedge against inflation and currency dilution. Silver, not to be overshadowed, also manifests resilience as demand in industrial applications and financial safekeeping propels its value forward.
In this precarious climate, I encourage readers to seriously consider reallocating resources away from the debt-laden paper currency system to wealth-preserving hard assets like gold and silver. These metals, particularly pre-1964 coins (junk coins), offer a bulwark against the erosion of your hard-earned wealth.
Apart from precious metals, other commodities also arrest our attention. Current crude oil prices sit at $82.51 per barrel, subtly hinting at broader economic strain, particularly as geopolitical tensions smolder and leave the Middle Eastern circumstances volatile. Even Bitcoin, cresting at $63,668.43, is sought by some as an alternative to traditional financial systems, though its own volatility merits cautious engagement.
Looking beyond the strictly financial aspects, we must grapple with the political dynamics at play. The US and Western economies are ensnared by market manipulations that fundamentally distort outcomes, contributing to inefficient and dystopian economic realities. These distortions—artificial interest rate suppression and quantitative easing, among others—undermine the free market, injecting uncertainty that only hard assets can withstand.
Yet, there’s more to survival beyond asset reallocation. Preparedness—embracing a survivalist’s mindset—is paramount. In light of the potential liquidity crisis that could cripple the markets following a debt market collapse, it’s essential to have a personal strategy. Basic necessities, alternative energy sources, and a community network could be crucial in a crisis.
What’s at stake today is more than investment strategy; it’s a question of sovereign financial sustainability. As you weigh your decisions, consider the truth evident in market trends and political maneuverings. The deliberate destruction of the US economy, whether by malfeasance or incompetence, casts a long shadow over the future.
What Kind Of Silver and Gold Should I Buy?
Ignoring these signs is to risk being swept away in the potential collapse that looms ominously. The wise will observe, plan, and move resolutely toward assets that have withstood the test of time, embracing the tangibility of gold and silver, forever immune to default and forever valued by those who understand the true nature of wealth.
Source: Market Data April 18, 2024, Money Supply and Velocity of Money Reports, Historical Bond Yield Data.
Be not deceived – be prepared ~ Silver Savior
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* Note: We are not giving advice; we only give our opinion; we are not financial advisors. This article only represents our thoughts about the economy.
