History Repeats

2020 was one of the craziest years in history, and 2021 will likely get even crazier.  There is a tremendous amount of uncertainty in just about all sectors of the economy.  However, the one certainty that we know is that governments/central banks will print fiat money at a level never seen before.  

 

Firing up the printing presses is nothing new; it is the primary tool the Federal Reserve and other central banks always use in times like these.  The goal is to create the illusion of economic growth by devaluing the dollar. Of course, free money isn’t free.  It comes at the expense of middle-class Americans having their savings crushed by inflation.

 

Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, about addressing governments worldwide, recently said

“In terms of policies for right now, very unusual for the IMF, starting in March I would go out and I would say: ‘please spend’.  Spend as much as you can and then spend a little bit more.” 

The IMF and other central planners used to try at least and conceal their actions.  Not anymore. 

 

How do Savers Protect their Wealth?

Historically, during times of mass monetary expansion, low-interest rates, and economic uncertainty, investors turn to gold, silver, and other hard assets to protect their savings’ purchasing power.  This time will be no different than the last time and the time before that. 

 

Physical Gold & Silver Investing

As we enter a new commodity super cycle, many first time investors in physical gold and silver will be targeted by precious metals companies who prey on their inexperience.  Marketing budgets will increase dramatically, and it will be near impossible to miss ads online, T.V., and radio with the same general message, “Protect your IRA/401k with Gold & Silver.”

 

The offer is usually for a FREE guide that will explain how you can protect your savings. The guide will look very professional and have beautiful pictures of various types of precious metals.  However, it will not teach you anything about how the company is no more than a sales organization whose primary goal is to extract as much of your retirement savings as possible.  The guide will not talk about 40-60% profit margins on the coins they intend to sell you.  The guide is simply a way to capture your information so that commissioned sales reps can begin calling you.

 

The Sales Pitch

Most of what the sales reps, not licensed financial advisors, will say about gold and silver is generally true. Precious metals could protect your savings against a falling dollar and economic uncertainty.  The pitch will sound good, and many will move forward with the program.  

 

The Catch

Once your IRA, 401k, or other retirement plan is rolled over into your new precious metals IRA, the very “knowledgeable” sales rep will recommend coins as the best investment to be placed in your account.  But not just any coins, SPECIAL coins that are low mintage, exclusive, and very sought after!  They will claim that the coins are worth substantially more than the spot price (melt value of gold/silver) and provide additional tax benefits. 

At the end of the day, it’s all bs to make a massive commission at your expense.  

Anyone who has experience investing in precious metals will never go for this nonsense pitch, but many new investors will fall for it hook line and sinker.  Don’t be one of them!

 

Law enforcement struggles to combat gold and silver schemes targeting older conservatives
WSJ: Gold Scam Targeting Conservatives Raised $180 Million, Regulators Say

Learn more about Gold & Silver IRA investing

Gold & Silver IRAs: Major Red Flags to Watch Out For
Physical Gold & Silver IRAs; A Potential Retirement Nightmare Until Now
The Future of Physical Gold & Silver Investing