You Can’t Afford NOT to Buy Gold

|April 23, 2024
Bar of gold in safe deposit box.

Back in late February, I presented at the Investment U Conference in Ojai, California. (Did I see you there?)

I made the case that gold, near all-time highs, was cheap… not expensive.

The next week, gold made new all-time highs… and has continued to do so.

I understand how this might spook would-be investors. After all, nobody wants to pay the absolute highest price for anything, gold included.

But that is precisely why I think you should pick some gold up now.

Before it goes even higher.

Buy Gold, Not the Headlines

Like everyone else, I have been listening closely to Federal Reserve Chairman Jerome Powell’s press conferences. I want to get an idea of if and when we might see interest rate cuts.

The markets had been betting on three rate cuts in 2024 and the first as early as March. Well, March has come and gone… with no cuts in sight.

Powell has said that he needs to see inflation at his 2% target rate… and there is no rush or need to cut rates sooner.

I give him credit for that. But when it comes to looking for cues from our economy on whether to cut rates, Powell has completely lost touch with Americans.

He has repeatedly said that household balance sheets are strong and household savings are much more than the Federal Reserve initially thought. He points to strong and rising consumer spending.

But he’s wrong.

Consumer spending isn’t up because people are buying more things. It’s up because consumers are buying the same things they’ve always been buying… but everything costs more.

Consumer goods now cost 3% more than they did last year. Last year’s prices were 10% more than the year before that.

People are buying what they need… not what they want.

Further, two-thirds of Americans are living paycheck to paycheck. Yes, there was bump in savings thanks to Covid stimulus (that same money printing that caused inflation to spike)… but source of funds dried up long ago.

And refinancing is no longer an option to save money. It would mean moving from a 3% interest rate to a near 8% interest rate on a refinanced mortgage.

That’s why Americans have racked up over $1.13 trillion in credit card debt at 20%-plus interest rates. These funds are not being used to live a lavish lifestyle. Again, these funds are being used for needs, not wants.

And delinquency rates are on the rise.

This is what Powell is completely misreading about the “strength of household finances.”

Who’s Buying and Who’s Selling?

Now, I would like to bring this back around to what we are seeing in the gold market.

Gold’s record highs have nothing to do with mainstream investors. Gold is making new highs without them.

In fact, since July of 2023, I have seen clients selling their gold and silver to pay down credit card debt.

No, today’s buyers are a handful of high-net-worth investors and central banks.

2022 was historic for central bank buying… the most in 60 years. And 2023 was not far behind. Central banks fell just 4% short of matching 2022’s buying spree.

Central Banks Are Loading Up on Gold

And we are not expecting a slowdown this year either.

What gives?

High-net-worth investors are buying because they are not feeling the pinch of this economy like the rest of us. And they know it’s critical in a weak, inflation-riddled economy to shore up their assets.

Wealthy investors and central banks have provided the support gold has used to consolidate over the past three years.

In recent weeks, gold has broken out of its four-year trading range.

But it has only just begun… because inflation will never be brought into check, for one big reason.

Find a Way to Buy Now

There is one thing that Democrats and Republicans wholeheartedly agree upon… entitlements such as Social Security, Medicare and Medicaid will never be cut from the budget.

President Biden and former President Trump see eye to eye on this as well.

The problem is they constitute an enormous portion of the annual budget. Not cutting those programs ensures our debt will continue to escalate.

That means inflation (i.e., money printing that devalues our dollar) will continue. Higher prices will stick around…

Including the price of gold.

Therefore, I urge you to find a way to buy gold now.

Here are three ways to find some cash to do it…

  1. Rebalance. Many investors have seen their allocations to stocks surge over the past year. If that’s you, your allocations are likely overweighted. Take some profits. Use the proceeds to buy some gold (and silver) here.
  2. Use IRA funds. Oftentimes, if you do not have the liquidity in your nonretirement assets, you can find it in your IRA. We have been helping clients buy precious metals in their IRAs since 1986… when it was first allowed.
  3. Accumulate. Although gold’s role as a store of purchasing power has not changed for 5,000 years, how it’s delivered has kept up with progress. You can set up a plan to accumulate gold and silver for as little as $50 at a time.

I have been watching this market intently for decades. The next leg up in gold’s ascent is taking shape. If you believe you can’t afford gold, you are missing the point.

You can’t afford not to buy gold.

It is the best way to preserve your future purchasing power… and keep what’s yours.

Note: For those of you who want to take action immediately, simply visit our website and enter the promo code MP2024 to receive a free one-ounce Silver American Eagle for each qualifying purchase.

You can also claim your exclusive benefit as a Manward Press subscriber by emailing us or calling us at (800) 831-0007.

Rich CheckanPresident and COO, Asset Strategies International