“This was the worst first half for the market in 50 years and it’s all because of one thing — inflation.”
In our January 2022 New Year report, we warned of this exact thing…
“The core problem for the modern portfolio in 2022 is debasement of the currency.”
The first half of 2022 has seen wealth destruction in almost every market, with both stocks and bonds suffering historic selloffs. Under the combined threats of raging inflation, slowing global growth, and the lingering pandemic. More than $8 trillion was wiped out in the S & P Index alone. In it’s worst first half performance in a half a century.
Gold however, held up remarkably well. While the S&P 500 tumbled 20% and the U.S. Bond Index fell over 10%, bullion posted a slight gain during the first two quarters of the year. In other words, gold admirably did its job, holding its value while most other assets were losing theirs.
As Q3 begins, the U.S. dollar has soared against other fiat currencies. Global flights to safety in currency markets have lifted the Federal Reserve note to new 20-year highs, driving down the prices of many commodities and putting gold and silver temporarily on sale.
But, while expectations of aggressive rate hikes by the Federal Reserve are peaking (along with the dollar) inflation is not. As core inflation rose at 9.1% in June, the highest in 40 years. But, experts agree that real inflation is at 17% including food and energy prices.
In fact, we are now seeing the severe impacts of an unprecedented $4.5 trillion in Fed pandemic money printing and massive government overspending since 2008..
With Inflation soaring we’re paying for it at the gas pump, grocery store and in the stock and bond markets. We’re paying for it in the diminished purchasing power of the dollar. And if you are saving dollars for your retirement, you’re paying for it in reduced prosperity in your retirement years.
Inflation Tax Costing US Households $433 Per Month
Inflation is a tax. Every dollar the government spends ultimately comes out of taxpayers’ pockets.
According to estimates by Bloomberg Economics, US households will spend $5,200 more this year than they did last year on the same consumption basket.
That breaks down to $433 extra in expenditures every single month. As our dollars buy less and lose more purchasing power everyday.
Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates says, “Cash is not a safe investment, is not a safe place because it will be taxed by inflation.”
Chart from Federal Reserve data shows the massive growth in money printing (Fed assets in green) overlaid against the declining purchasing power of the U.S. dollar (shown in red) since the last Fed-induced crisis, the Great Recession.
“The level of CPI today already suggests that gold, relative to equities, maybe just about as undeservedly cheap as it was a half-century ago, the last time inflation really became a problem. And if inflation remains elevated, gold prices have a terrific amount of upside ahead, especially relative to stock prices.”
We also warned repeatedly about the stock market bubble, saying,” It had been hyper-inflated to unsustainable heights by unprecedented Fed money printing.”
Now as the air comes out of an inflated stock market, Do Not ride it down and expect to make it all back eventually.
The first rule of an investment is don’t lose [money]. And the second rule of an investment is don’t forget the first rule. – Warren Buffet.
In the last stagflation decade, the 1970’s, the stock market lost almost half its value in less than two years. Yet it took almost 20 years for it to recover in real terms.
Remember that if the market falls 50 percent, it must climb 100 percent just to get back to break even.
The #1 ranked Aden forecast says, “ The financial crisis bubble of 2008, the tech stock bubble of 2000, and the inflation bubble of the 1970’s saw the S&P 500 plunge 57% 49% and 48%. But, since the current bubble is bigger, the resulting stock market drop will likely be bigger too. The S & P 500 has declined 23%. This tells us the bear market is not half over yet, and has a lot further to go.”
“The deceleration in U.S. growth could lead to a perfect storm that propels gold prices much higher in the months ahead, alongside falling valuations for equities.” – Kitco News.
Goldman Sachs raised it’s gold price target to $2500/oz, signaling a strong second half for 2022.
Goldman has said that inflation expectations may become “unhinged”, as inflation has become quite persistent, and has proven not to be transitory as previously expected by the Fed.
“In any scenario where inflation increases rapidly and sustainably, gold will outperform other assets. This is due to the fact that gold is a physical asset with no liabilities, and therefore its value cannot be eroded by inflation like other assets such as bonds and equities. We view current gold price weakness as a good entry point.”
“Investors should consider today’s prices a gift and perhaps a last chance to acquire gold at these prices before the real safe haven race begins. Gold is so cheap right now, it’s practically a steal,” says long time economist Jim Rickards.
Gold demand remains strong due to economic, inflation, and war concerns.
Physical Gold and silver are stable as this temporary correction prompted a tidal wave of buying from bargain hunters.
While speculators on Wall Street have been selling “paper” gold (mining stocks, ETF’s ) to meet margin calls in stocks, bonds, and cryptos, causing the the paper Futures price of gold to temporarily pull back.
Limited physical supplies will lead to shortages of nearly all types of bullion coins — and assure higher premiums in the near future.
Giving investors a rare opportunity to protect wealth and retirement by acquiring gold & silver at bargain prices.
“Gold has fallen to levels from which we should see excellent returns over the next 12 months and potentially spectacular over the long term.” (Kitco News)
Like in the 1970s, during the last period of high inflation… Gold corrected halfway through the decade, and then went on to gain over 700% over the next 4 years.
Gold’s Gain After Mid-1970s Correction.
And in 2008, when the stock market lost 37%…
Gold nearly tripled in value over the next 2.5 years.
Conclusion: in 2022 Stock, Bond and Real estate bubbles will continue to deflate…
20-40% housing crash is coming
Peter Grandich, who correctly predicted the crypto and stock market crashes, said that he expects a major correction in the real estate market in the U.S. and warn that real estate could see a 20 30 or 40% Loss and pretty quickly.
Along with surging inflation, growing debt, a weaker dollar, and slower economic growth add up to substantially higher gold & silver prices in the coming months. Making the current pullback in prices a historic investment opportunity. In fact, during the stagflationary decade of the 1970’s gold increased 20 times in value, while stocks, bonds and real estate prices were declining.
Never forget, anything denominated in dollars (stocks, bonds, mutual funds, money market/CD’s) lose purchasing-power every day from inflation.
…And devastate retirement accounts by knocking years off your savings, potentially causing you to outlive your money.
That makes protecting yourself with gold urgent. It’s the only proven means of wealth preservation against equity investment losses, asset bubbles, global economic crisis and currency debasement. (inflation)
Gold has been the foundation of wealth and a monetary base for centuries. It has maintained value over time better than any other asset on earth. That makes it the best place to store your wealth.
Unlike paper Investments (stocks, bonds and cryptocurrencies) that can become worthless overnight. Gold & silver have true intrinsic value. They can’t be debased by governments who print paper money at will, making their currency worth less every year.
Many renowned experts expect gold prices to soar to $5,000/oz due to U.S. dollar debasement.
During a currency crisis or 1970’s-style stagflation cycle, a rush to safe havens can produce spectacular bull market gains in gold & silver over and above inflation.
Repositioning IRA/401K retirement-savings out of risk assets (stocks, bonds & real estate) and dollar-denominated accounts (money markets, CD’s, annuities) into gold now, could be the best financial decision you make.
Gold offers unparalleled profit potential, a proven track record of appreciation, privacy and wealth preservation. It’s the perfect way to protect yourself against currency devaluation and the unstable stock, bond & real estate markets.
Make triple digit returns with no-risk, in U.S. Government issued gold.
Classic American gold & silver coins have been a popular method of storing wealth for generations, which is no surprise considering that they have outperformed the S&P 500 for the past 25 years ( PCGS 3000 Index) and appreciate at an average rate of 23% in years where inflation is at least 3%.
For conservative investors who want physical gold that is completely private and offers stronger upside potential than bullion. Classic American gold & silver coins are comparably priced with modern bullion coins yet have historical and numismatic value that bullion cannot match. They offer the best combination of low price, low premium, fundamental scarcity, and strong track record of leverage to the bullion price.
Investor Special – Historic U.S. Double Eagle’s at Bullion prices.
U.S. Double Eagle $20. St Gauden’s gold coins (1907- 1933) Are the most Beautiful and sought after U.S. gold currency ever issued. Recently a rare 1933 Saint Gauden’s auctioned for a record $7.5 million dollars. The highest price ever paid for a U.S.gold coin.
They combine true scarcity, high gold content, with historic low prices and premiums to create an extraordinary investment value.
MS64 $20 Double Eagle’s offer a superior track record of profitability over bullion. For about the same price as a common 1-ounce Gold Eagle, you can get a 100 year old U.S. gold coin that has traded at 300% above its intrinsic gold value, in the last 15 years.
The premium for near gem MS64 $20 Saint’s (cost over intrinsic gold value) is near record lows of of 25% today. This has created an unprecedented opportunity to own historic U.S. gold at bullion prices, and see triple digit gains in the coming months.
During the height of the financial crisis in 2009, these $20 Double Eagle’s traded at $2,700 with gold bullion at $925. That’s $5,250 at today’s gold price. And if gold trades at $2,500 an ounce in 2022 (Goldman Sachs forecast ) is $7,500 a coin.
When the premium reverts again, MS64 $20 Double Eagle’s would gain $3,000 from today’s low price of $2,250. More than double the current market value, with no change in the underlying gold price!
In fact, the last two bull markets in U.S. coins saw prices rise 665% and 1,095% (PCGS 3,000 Index.)
We have secured a small number of these classic American rarities, at the lowest price in the nation, with dates that are up to 5 times rarer than the most common dates, offering powerful investment leverage at no extra cost.
These rare historic coins are currently valued at $2,750 ( pcgs.com) But, while they last, are making them available at dealer pricing of only $2,250 each, a $500 savings!
Each coin has been certified by PCGS or NGC. And comes with our exclusive guarantee. Providing unlimited profit potential with no risk.
MS64 $20 St Gauden Double Eagle’s offer precisely the kind of “double play” leverage we look for in classic U.S. gold coins: The proven ability to rise by much more than their underlying gold price, because of fundamental scarcity and restricted supply in the national market.
Even a modest rise in demand can overwhelm existing market supplies, driving prices much higher, often very quickly.
So, don’t miss the last great buying opportunity, in the worlds cheapest asset.
- Low premiums. Comparably priced with modern bullion coins yet, significantly rarer.
- Proven crisis track record. Premiums tripled during the last financial crisis in 2009.
- Exceptional scarcity. Only small number of survivors certified in mint state condition (PCGS & NGC) which means prices can rise sharply in gold bull market.
$2,250 per coin – $500 Discount. Call now to reserve historic U.S. gold at bullion prices, before our limited quantity sells out & values rise again. It could be the most profitable call you make in 2022. (800) 723-8349
Since 1982, Liberty Financial has helped thousands of American’s secure their financial future with tangible investments. Our low prices, expert advice and exclusive guarantee has earned us a top consumer rating, and made us one of the top wealth management companies in the nation.
You can invest with confidence. Our guarantee of satisfaction assures each customer of a positive, risk free transaction every time.
Call (800) 723-8349 for a free no obligation portfolio evaluation. And discover safe and predictable ways to..
- Build your wealth and protect your assets, no matter what happens in the markets.
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