When Gold Outpaces Currency Failure

02 Apr

When Gold Outpaces Currency Failure

Gold moves up two quarters in a row!

Hard assets- gold and silver specifically- are the foremost means of protecting wealth in times of inflation. 

But don’t expect gold and silver prices to just compensate for or merely offset the loss of the currency’s purchasing power.  They may do so for a while, but when the realization begins to spread that a financial or currency crisis is developing, gold and silver can far offset the rate of the currency’s loss of value.  Then they skyrocket!

It is reasonable to expect that something like that can happen at almost any time.  We began to see signs of it during March with its wave of bank closures.  They produced a rush of precious metals business at Republic Monetary Exchange from our farsighted friends and clients.  But for all the increased activity, it is nothing like the flood that we may awaken to one day not too far down the road.  

The array of possible triggering events for that day is huge, prospects that we have detailed in these commentaries.  It may be bank holidays, the sudden implementation of a new central bank digital currency, the eruption of a catastrophic war, the widespread outbreak of civil disorder, or the dumping of US dollar positions by foreign nations.  Anyone who follows the news knows that each one of these is growing disturbingly likely.

Although the fallout from the failure of Silicon Valley Bank, Signature Bank, and Credit Suisse is nothing compared to the generalized bank holiday that may be in our future, it is worth noting that gold has climbed for two consecutive quarters, gaining more than 19 percent in that time.

Invest now and avoid the rush!