In economics, current sentiment is key to speculation. It can create the financial equivalent of self-fulfilling prophecies. For example, when the economy is believed to be in a downturn, consumers tend to spend less which helps put the economy in a downturn.
The current sentiment toward prospects of a government default if the debt ceiling isn’t raised in time has many investors acting skittish. According to Filip De Mott from Business Insider, many investors are turning to gold ahead of the fallout of such an event which could take place in less than three weeks.
“Specific predictions about the market fallout from a US default are tricky as such an event is unprecedented,” he said. “But analysts say gold will still be viewed as a safe haven.”
That doesn’t mean precious metals investors need to hope for default. As analyst Christopher Louney and other economists have been saying for weeks, even a last-minute deal cut between Republicans and Democrats to raise the debt ceiling could be a boon for precious metals investors who act soon enough.
“Even assuming a deal is eventually reached, we wouldn’t disregard potential growing financial angst as the deadline approaches,” Louney said. “In such a scenario, gold looks like one of the few likely candidates that would bear the burden of resulting market flows.”
As a publication, we benefits when our readers purchase from either of our America First precious metals sponsors. They have been very busy in recent months and are expecting the next two weeks to see the flood gates opening as we approach either default or a last-minute deal to prevent default. This is why we’re encouraging people to contact Our Gold Guy for multiple purchase types of physical bullion or Genesis Gold Group for retirement account rollovers backed by physical gold and silver.
Coffee the Christian way: Promised Grounds
Investors are paying attention, not just to what’s happening in Washington DC but to the sentiment shifting across the world. Gold in particular seems to be of interest; even most central banks around the globe have been buying up as much of the precious metal as they can get over the last few months.
“I wouldn’t be surprised if we had a $100 move in gold prices,” Oanda Senior Market Analyst Edward Moya said. “It’s a little too tough to call, but obviously that is a historic moment that would unravel large parts of Wall Street.”
The reason we selected one mid-sized precious metals company in Genesis and one smaller company in Our Gold Guy is because they are both rare in the way they do business. Unlike “Big Gold” players, neither Genesis nor Our Gold Guy attempt to con people into buying an extra $10,000 in “free” silver. It’s a marketing ploy that works well, which is why so many in “Big Gold” do it. Our partners have far too much integrity to engage in such shenanigans.
Quincy Krosby, chief global strategist for LPL Financial, also expects that gold could climb in a default, saying the dollar could weaken and elevate it, given that the commodity is priced in dollars.
Don’t just survive — THRIVE! Prepper All-Naturals has freeze-dried steaks for long-term storage. Don’t wait for food shortages to get worse. Stock up today. Use promo code “jdr” at checkout for 25% off!
She also pointed to credit default swaps as a potential indicator, noting that they are correlated with gold. In April, one-year default swaps hit their highest since 2008.
“It would not be surprising to see gold as a safe haven refuge for those who are concerned that a default could, in fact, ensue,” Krosby said.
Even outside of a default scenario, gold has other tailwinds that potentially set it up for new record highs. Moya pointed to the continued buying of gold by global central banks, demand from China and India, and global rate easing, which helps gold because it’s a non-interest-bearing asset.
“So, it seems that there’s a good reason to anticipate gold could still outperform,” he said. “Will $2,100 happen this year? I think there’s still a good chance that that could happen, given the way the US economy — or the direction — the US economy is headed. So gold is probably going to do just fine, given all the risks that are on the table.”
- Concerned about your life’s savings as the multiple challenges decimate retirement accounts? You’re not alone. Find out how Genesis Precious Metals can help you secure your wealth with a proper self-directed IRA backed by physical precious metals.
Reach out to Our Gold Guy or Genesis to get started with protecting your life’s savings from government, central banks, and other nefarious forces.
What Would You Do If Pharmacies Couldn’t Provide You With Crucial Medications or Antibiotics?
The medication supply chain from China and India is more fragile than ever since Covid. The US is not equipped to handle our pharmaceutical needs. We’ve already seen shortages with antibiotics and other medications in recent months and pharmaceutical challenges are becoming more frequent today.
Our partners at Jase Medical offer a simple solution for Americans to be prepared in case things go south. Their “Jase Case” gives Americans emergency antibiotics they can store away while their “Jase Daily” offers a wide array of prescription drugs to treat the ailments most common to Americans.
They do this through a process that embraces medical freedom. Their secure online form allows board-certified physicians to prescribe the needed drugs. They are then delivered directly to the customer from their pharmacy network. The physicians are available to answer treatment related questions.