In the past few weeks and months, we at U.S. Money Reserve have seen a large influx of Americans looking to add gold (or, in many cases, more gold) and other precious metals to their portfolios. And if you watch the headlines like I do, it’s easy to see why. A number of news stories suggest situations where gold and other precious metals have traditionally served as safe-haven assets or have otherwise historically seen growth. In this Gold News & Views, we’ll look at five reasons that you may want to add gold or other precious metals to your portfolio now.
1) “Gold Prices Score a 5th Gain in a Row” —MarketWatch
On April 13, 2022, MarketWatch wrote that gold continued an upward trend “after the U.K. posted ‘higher than expected and accelerating’ inflation numbers.” The same day, CNBC wrote, “Gold prices hit a one-month high…as rising consumer prices boosted its appeal as an inflation hedge.”
I’ve written about inflation here numerous times. As inflation continues to increase, the money in our wallets does less and less for us and our families. Thankfully, gold has historically acted as a hedge against inflation.
2) “London Market Blocks Newly Refined Russian Platinum and Palladium” —Reuters
On April 8, 2022, Reuters reported that the London Platinum and Palladium Market decided to suspend trading of the precious metals from Russia, which ranks first in the world in terms of palladium production and second in terms of platinum production. As Reuters reports, “Prices of palladium surged as much as 11%,” and platinum also saw a price increase.
I often talk about looking for opportunities in the face of uncertainty. If the world continues to decrease its reliance on Russian precious metals exports, supply shortages could potentially impact prices.
3) “Russia just made a case for owning gold—and nobody noticed” —MarketWatch
In an opinion piece published by MarketWatch on April 2, 2022, financial columnist Brett Arends notes that Pavel Zavalny, the head of the Russian State Duma’s energy committee, recently stated that rather than the world reserve currency of the U.S. dollar, Russia was calling on other nations to pay for their resources in gold. This is interesting to me, because on March 25, 2022, The Wall Street Journal reported that “the U.S. is clamping down on Russia’s ability to sell its gold reserve and raise money.” However, Arends points out that Russia’s government is “struggling for money, and the ruble has collapsed,” so perhaps they see gold as their only way out—a reminder of how powerful gold is as a store of wealth.
If you’ve read some of our Special Reports, you’ll know that Russia’s de-dollarization has been going on for some time. But the current geopolitical landscape may speed up that process and impact gold along the way. According to Arends, this latest move could mean “a lot” for gold, “especially if Russia’s lead is followed by countries such as China, India, and others.”
4) “A ‘recession shock’ is coming to the U.S., Bank of America Says” —Fox Business
On April 11, 2022, Fox Business reported that according to Bank of America economists, “The U.S. economic outlook is darkening so rapidly that a recession may be on the horizon.” On April 12, 2022, Jeffrey Gundlach, CEO and CIO of DoubleLine, used the word “calamity” to describe what may be coming for the stock market.
You can see where this is going. Gold has helped to reduce portfolio losses during previous financial shocks and has acted as a historic store of wealth during times of economic uncertainty. It’s why we like to consider gold as a form of “wealth insurance.”
5) U.S. Money Reserve is America’s Gold Authority®.
I strongly believe that education is the key to making good decisions, be it for your portfolio, your health, or any other aspect of your life. That’s why we take the time to review the latest headlines, prepare our Special Reports and Global Gold Forecasts, and supply our clients with other exclusive content and information to help them make the best decisions for their unique financial portfolios.
If you believe as I do—that now may be a great time to consider creating or expanding your precious metals portfolio—I hope that you’ll entrust us with being your guide through the world of physical precious metals ownership and precious metals IRAs.
To learn more about the benefits of physical gold ownership, CLICK HERE to request a FREE copy of our Gold Information Kit.