LOS ANGELES, April 27, 2020 /PRNewswire/
In a recent survey conducted by iTrust Capital, consumers are most likely to spend the money on rent, groceries, or save it for an emergency.
According to iTrustCapital CEO Todd Southwick, these survey results point to a fact consumers know, but political leaders and financial markets wish they could ignore. The economy is not going to make a quick rebound.
“When Congress passed the stimulus bill, I think people were hoping this was going to be a two or three-week thing, and then the economy was going to be able to go back to where it was in February. Similarly, I feel the hundreds of billions spent bailing out airline and hospitality segments were with the feeling that if we just hit the pause button, in a month or two, everything will go back to normal. We see the same with mortgages. The banks gave everyone three months to defer payments, but what happens when clients still can’t make payments this summer?
I worry that we might be wasting that ammunition bailing out industries that will be in the same position and asking for another bailout in two months. How much debt do we take on before the only way out is to devalue the dollar massively?”
Analysts at Bank of America share Todd’s sentiment, suggesting inflation resulting from “the prospects of endless monetary expansion” from the Federal Reserve and other world banks will drive up prices for gold to $3,000 within 18 months.
iTrustCapital’s service allows clients to buy physical gold in their retirement accounts to diversify their investments as well as from wall street, banks, and the dollar-driven system in general. Says Mr. Southwick, “When we began to plan to offer gold on our platform last year, we had no idea the world would be in the position it is in. We don’t feel lucky by any means but are happy we can offer our clients a way to diversify into the currency of last resort, gold, during these uncertain times.”