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5 Reasons to Hold Precious

Metals Before the Next Recession

The year 2018 is underway and there’s so much uncertainty in the political and economic sphere. The
elected officials of our country are so divided that it’s hard to agree on what’s best for our nation as a
whole. It seems like the only suggestions coming out of Washington D.C. is on how much should or
shouldn’t be sent from a financial account that’s already operating in the negative.

Our nation is currently $21 trillion dollars in the hole for the public debt ($21,000,000,000,000)
comprised of public and intragovernmental holdings. That doesn’t even include the long-term
obligations which include all the entitlement and retirement liabilities (Social Security, Welfare,
Medicaid/Medicare, Government Pension, etc.) owed to public workers. To make it even worse there’s
no trustworthy statistics coming from the Government agencies that are even worth trying to keep tabs
on. The best source of actual accounting has come from non-Government payroll economist which has
estimated the total obligations of the nation at well over $69 trillion and counting.

At some point, this financial deck of cards must come crumbling down. This is just what’s happening on
a national level. It doesn’t include the turmoil happening on the municipal level in various states like
Illinois, California, and Kentucky where they are having major problems with keeping basic services
running. To make it even worse the most notable and newsworthy problems that are gaining more
attention in the alternative media world is the pension crisis for all those same states. The fact that
there have been too many promises made with little concern on how to live up to those financial
obligations is the reason a lot of people are in for a rude awakening.

The financial affairs of the United States of America have reached a point of complete monetary chaos.
This chaos has ruined the credibility of our nation and the stewardship over the current reserve currency
has been brought into question by our creditors. Not only has too much debt and the increasing deficit
spending of the Federal Government tarnished the reputation of the nation but has siphoned the wealth
of the citizens that depend upon the national currency, the Federal Reserve Note.

The national currency that was in circulation during the great industrialization period of this nation was
lost long ago. In the last few decades since the removal of silver from coins and the closing of the Gold
Window by President Nixon, the Central bankers have led this nation down a path of monetary suicide.

Since the Great Depression nearly collapsed the financial markets around the world, the bankers of the
world have implemented unimaginable policies that have further indebted the nation through easy
money implementation and guaranteed credit to anyone with a pulse.
Who would have imagined that people
would lend money to a bank and receive
no interest in return? The idea of being
forced to spend money, being told by
celebrities on television (Samuel L.
Jackson) you can earn cash back is
completely absurd. Yet this is the world
we live in and it’s not going to get any
better I’m afraid.

That’s why it’s no better time than this year to think beyond the conventional school of thought. Those
that wait to get their daily news or information from the mainstream channels will be recipients of
yesterday’s news when it’s too late to take action. How many people found out about the financial
catastrophe in 2008 after Bear Sterns and Lehman Brothers came crumbling down? The best
preparation in uncertain times such as now is to be ahead of the news before it even happens. If you
have been paying attention to the news then you’re definitely aware of the talk of the next pending
recession.

The Next Recession May Be Our Last


When the next recession comes, many people who lose their jobs will have a harder time getting
unemployment insurance, an important lifeline for most Americans. Those who don’t get benefits will
have to settle for the sort of fake jobs our economy produces in abundance — a service industry job as a
waiter or greeter at a retail store, or a gig delivering groceries to people who still have careers.

Talk of a recession is in the air again after the recent wobble of the stock market during the second
month of 2018. It’s highly likely the next recession will occur in the next couple of months under the
Trump administration and newly elected Fed Chairman Jerome Powell.

Maybe it’ll happen as a result of his inflation-baiting tax bill. Maybe it’ll have something to do with
excessive debt bubble bursting because of the trillions in student loan, credit card or auto debt reaching
all-time highs. There’s no way of predicting how it will happen, but if history is a good teacher it’s not
hard to predict how severe the next recession will be on the economy.

A recession starts after economic activity has reached its peak. Right when things are better than ever is
when they’re about to get worse. But you won’t know the recession has started until later, because the
National Bureau of Economic Research waits until the government has finished its data revisions, which
happens over a period of months. It wasn’t until 2008 that the organization announced that the last
recession had begun in 2007.

There have been 11 recessions since World War II. The current economic expansion (or economic
recovery) began in mid-2009, making it the third longest in history, and it can’t last forever.
Not to be a killjoy, but historically there have only been two expansions that lasted as long as this one.
To match the 120-month boom in the 1990s, we'd need the economy to keep growing past January
2019, an occurrence that The Wall Street Journal deems "a very tall order."

The general public victims seem to be suffering from amnesia or rather choose to ignore the damage the
last recession had on the economy. How the S&P lost approximately 50% of its value or the Dow Jones
fell 20% from its October 2007 high. In my opinion, the next correction will be much worse because the
overall health of the global economy has gotten plastered over with so much debt. How is the global
economy worse than the last Great Recession is the question everyone should be asking themselves?

Since 2009 the action by the newly formed G20 group of developed and developing nations in an
attempt to stop a global meltdown all had to cut interest rates to near zero (in the European Union
several nations are negative), fiscal stimulus packages of varying sizes announced (the United States
Government pledged billions to big too fail banks and through former President Obama’s TARP
initiative), and electronic money created through quantitative easing (Federal Reserve produced $4
Trillion of fake money and the EU is still printing today).

At the London G20 summit on 2 April 2009, world leaders committed themselves to a $5tn (£3tn) fiscal
expansion, an extra $1.1tn of resources to help the International Monetary Fund and other global
institutions boost jobs and growth, and to reform the banks. The proposed reforms and credit expansion
has led to an all time high of global debt of $233 Trillion dollars and counting. The response to the last
recession was to create more debt. Once the next recession happens there won’t be enough debt to be
issued to prop up a projected stock market crash of 50% or more, massive unemployment of 30% or
more, and government bonds becoming worthless pieces of a broken promise.

The next recession will lead to a collapse in monetary and fiscal policy around the world because
governments won’t be able to borrow their way out of the next market crisis. The end result will be the
trigger for a transfer of wealth out of paper currency and digits into safe and historical assets like gold
and silver.
This transfer in wealth I am referring to will be the only time in history that citizens around the world
regardless of their current economic status, whether low income or high net-worth individuals, can
benefit from the stupidity of governments and central banks.

In this book I have laid out in very simple form, five reasons why you need to hold precious metals in
your possession now. You will uncover a few of the top reasons to possess physical metals in your hands
before the official recession is underway. The best insurance policy in the days ahead to preserve your
hard-earned capital against the inflationary policy of governments is found in precious metals. Make no
mistake there are a lot of fancy new assets on the market that’s getting lots of attention but don’t hang
your financial future on fancy and convenient rather than assets that’s times tested and rare.

Take the time to read and to better understand the reasons to own precious metals. If only one of the
five reasons shine light on the subject at hand, you could be saving your posterity from financial ruin
while also securing generational wealth to last you for the rest of your life.

Precious Metals Will Protect Your Portfolio in Times of Crisis


One of precious metals strongest advantages is that it can protect your investments—even your
standard of living—during periods of economic, monetary, or geopolitical crisis. And depending on the
nature of the crisis, gold can move from a
defensive tool to an offensive profit machine.

When a crisis strikes and drives fear higher—


whether it’s from investors worried about the
stock market or a full-blown event affecting the
livelihood of all citizens— precious metal is a
natural safe haven. Fear is what drives people in a
crisis, so the greater the worry the more precious
metals are sought and the higher its price goes.

A lot could be written about the various crises that are possible today, such crisis as the underfunded
pension issues impacting a majority of the states. The sad fact still remains that millions of hard working
Americans have put into the Social Security program might not be collecting a check one day or
receiving a payout that doesn’t purchase much.

The list of possible scenarios of crisis that can impact your portfolio is unending but the main point to
take away from this is that the level of risk in investors face in this economy because of fiscal and
monetary policy has been elevated drastically. There are so many risks, in fact, that the precious metals
price is more than likely to make new all-time highs in response to whatever issue our nation faces. Keep
in mind that since the year 1500 A.D., a whopping 617 fiat currencies have been in circulation and every
single one of them are now collectors’ items because they are worthless. About a quarter of those was
due to hyperinflation.
The message from history is very clear: No fiat currency has lasted forever. Eventually, they all fail. And
today they’re all made of paper, backed by nothing but your faith, confidence and the fact they still can
be exchanged for goods and services. At least for now…

Precious Metals Require No Specialized Knowledge & Easy to Store


Unlike most financial asset classes, you don’t need to have some special certifications or take courses in
order to purchase precious metals. In the paper asset world of stocks, bonds, and insurance
instruments, the financially educated individual is forced to study long hours and hope to pass an exam
in order to obtain a paper certificate or license to be labeled as an advisor. In the precious metals world,
your everyday investor could be a teenager or a senior citizen and all they need to know is that gold and
silver are rare metals from the earth that have held there value well before the invention of paper
assets.

There are a variety of asset classes available on the market and in


order to invest in the precious metals market, no formal education is
needed. For the price of a cup of coffee or admission into a movie
theater, a person can purchase a book on the history of money and
see for themselves that gold and silver coins have always been
labeled as legal tender for good and services since the invention of
books themselves.

When it comes to precious metals the cost of storing them ranges


from free all the way to a small fee for a segregated account at a
depository. Whether you choose professional storage which does come with a fee, vaulting charges are
typically low. And compare a small storage bill to the costs and headaches of, say, real estate. You can
just lock your metals away until you need them —no late renter payments, calls to fix a broken toilet or
complicated tax issues.

Of course, you can always hide or secure precious metals in your home, too.

Keep in mind that when it comes to gold its value dense. That means it packs a lot of value in a small
space. You can hold $50,000 of gold in the palm of your hand—or store it in a small space in your home.
And at any price above $1,300/ounce, you can store more value in a safe deposit box with gold than
stacks of dollar bills.

Precious metals are the only asset class that requires very little knowledge to acquire them and no extra
effort to secure in your own possession. Unlike conventional assets, a lack of knowledge and training has
forced the majority of people to pass all the responsibility of their financial wellbeing to an automated
computer or third-party conglomerate to secure their investment portfolios for them.

The last thing you would want in the case of another Great Recession style event is to have a majority, if
not all of your wealth tied up in digital or paper form in the hands of someone else. History has shown
that when panics happen the last place you will be able to go is to your ATM machine or better yet, the
ability to call your broker or advisor if you needed to withdraw or sell paper assets during a market-wide
crisis.

Precious Metals Have No Counterparty Risk


If you hold precious metals, no paper contract is needed to make it whole. No middleman or other party
is necessary to fulfill a contractual obligation. That’s because precious metals are the only financial asset
that is not simultaneously some other entity’s liability.

Every other asset you can think of has a variety of


parties that dependent upon the trust and cooperation
of others. For example, if you have a 401k or Pension
for that matter. When accounting for the risk in
comparison to metals is much higher. The financial
stability and health of so many parties ranging from
your employer, brokerage house, the company
offering the share on the market, the government, the
central banking policy all impact the health of your
financial future. If there’s one error on any part of that
chain you could lose a lot or all of your investment.

This is important because precious metals will be the last man standing when bubbles pop or a crisis
hits. That’s a powerful tool to have in your portfolio when things start to go wrong in your country or
economy.

It also means precious metals won’t go to zero. It’s never happened in its 5,000+ year history. That’s a
powerful feature, especially if you asked former shareholders of companies like Bear Stearns, Enron, or
Lehman Brothers.

The most notable threat to your financial future is the fact that precious metals also come with a Central
Bank risk guarantee. The fact that in a desperate attempt to stem the last crisis, the Great Recession,
government officials around the globe all decided to flood the world with currency and push the
purchasing power of precious metals exponentially higher.

During the economic boom period prior to the Dot.com bubble bursting, an ounce of gold was roughly
$400-$500 an ounce. After the War on Terror started all the way through the Great Recession the price
skyrocketed to an all-time high of $1,917.90 in August of 2011. This was all driven by poor fiscal
management by governments and unprecedented central bank policy started by the Federal Reserve
Bank in response to ongoing financial crises. Unlike the past decade, their efforts won’t work as easy the
next time there’s a financial crisis and—depending on how much they print—could easily tip us into
hyperinflation.
Regardless of the culture or time period, currency dilution has repeatedly resulted in much higher gold
and silver prices. Precious metals will always have value. You can always sell it if you need currency but
you won’t always be able to exchange paper when you want metals.

Precious Metals Are Tangible Assets


If you buy precious metals, you can hold them in your hand, something you can’t do with most any other
investment. Real gold and silver can’t be destroyed by fire, water, or even time. And unlike other
commodities, precious metals don’t need feeding, fertilizer, or maintenance.

A lot of people may try and criticize precious metals because they don’t produce income misunderstand
their role in a portfolio. It isn’t the metals job to produce income; there function is as money and a store
of value. This is also why precious metals shouldn’t be viewed as just another commodity; they don’t get
“used up” like oil or corn since almost all the metals ever dug up is still in existence.

Since gold has always been viewed as the most valuable


of the two metals every single ounce ever mined is
locked away in a vault. Governments, Central Banks,
Private Institutions and wealthy families have included
gold along the categories of generational wealth
storage alongside the importance of having land and
artwork. Silver, on the other hand, is a more common
metal for industrial purposes and has made all the
modern technology we enjoy today possible. Without
silver in cell phones, televisions and medical uses the
world wouldn’t be the same.

The idea of being able to hold rare metals that come from the earth and can’t be printed by bankrupt
governments should be viewed as an honor and privilege in the 21st century. Due to the ever-increasing
government and consumer debt around the world, the idea of holding assets in your possession that is
time tested and has proven to be the last asset class standing during times of chaos. Precious metals are
a guaranteed insurance policy that will pay out big time for those that recognize the importance of
holding them.

There’s another advantage to precious metals being a tangible asset: they can’t be hacked or erased.
Unlike brokerage accounts, bank accounts, and payment services like credit cards, metals are out of
reach from hackers and identity thieves.

In today’s world, it’s probably a good idea to have some of your wealth outside of a digital form. If the
power goes out, for example, the internet isn’t available or your online world comes crashing down.
Those metals you possess aren’t affected one bit. In fact, in that scenario, they could be a lifesaver for
you and your family.
A great example would be the most recent hurricane that struck the islands in the Caribbean, most
notably Puerto Rico in 2017. They were without power for months and had no access to cash from banks
or ATM’s. Those that held tangible assets had an opportunity to function somewhat normal while those
that didn’t have cash or metals became economic victims of mother nature. That was just an isolated
event on some islands due to the weather. Imagine an event caused by a banking blunder or worst yet, a
stock market crash.

Precious Metals Are Money


Precious metals are not used as a currency today, but their role as money makes it superior to any
currency. In fact, gold has been money longer than any currency in history. Gold has been a store of
value for at least 5,000 years, while one of the longest currencies in history, the British Pound, is about
1,200 years old.

Along with that, Silver has been considered the money of


the people since the founding of the United States of
America. Prior to the coinage acts that demonetized metals
over the last hundred years, the primary circulating
currency where gold and silver coins.

One of the crucial promises of having a money you can


trust is that it serves as a long-term store of value. Precious
metals fulfill that promise better than any fiat currency in
history. Look how much purchasing power the Federal
Reserve Note has lost in comparison to one gold coin over a
hundred-year period.

The best way to understand the importance of precious metals is to be able to distinguish between the
words ‘fiat currency’ and ‘sound money’. For the majority of people, currency – more specifically fiat
currency – is “cold hard cash.” They are the dollars, pesos, or yen you keep in your wallet or purse. As
such, currencies serve the function of being a country’s primary medium of exchange, in the form of
coins or paper.

In the premodern era, countries moved from precious


metals to currency as a way to facilitate exchange
among the economies’ participants. Gold, silver, and
copper were typically cumbersome and hard to
transport. Banknotes were once a type of currency
backed by gold and silver in the US. As such,
banknotes could be exchanged for “legal tender” (i.e.
gold and silver) at any time by the owner. US silver certificates, for example, could be exchanged for
their face value in silver from 1878 to 1964. If you were alive during that time it was very common to be
able to redeem the paper currency in exchange for sound money at a local bank.

Today, the premier fiat currency that has had the longest lifespan and has served as the world reserve
currency is the Federal Reserve Note. Since the creation of this note in 1913 the United States
Government along with the Federal Reserve Bank have inflated the supply of notes and digital dollars to
astronomical numbers. Along with the expansion of the money supply has led to a much higher cost o of
living and the stealth theft of purchasing power from savers and retirees at an annual rate of 2%
inflation. That percentage has been the prescribed target of inflation that the Federal Reserve Bank is
committed to achieving at all cost.

The Federal Reserve Note starting this year will be the subject of the mainstream news a lot. Not only do
we have a Central Bank chasing what they consider a healthy rate of inflation at 2% but more
importantly we have the Secretary of Treasury of the United States, Steven Mnuchin, that thinks it’s
good for the U.S.A to have a weak dollar.

The current policies in place are all designed to weaken or


destroy the Federal Reserve Note one day. No one knows
exactly how the faith and confidence in the dollar will end but
one thing is for sure. When this current monetary paradigm
changes it will all boil down to how many ounces you have in
your possession and not how many digits in your bank
account.

Keep in mind, every paper dollar or currency in your possession is a liability of your government that’s
owed back to the issuing Central Bank with interest. So, the paper money you spend, save and invest is a
major threat to your long-term financial stability.

Remember there have always been two certainties, death, and taxes. Since the beginning of 2018, we
might as well add inflation. If you don’t lose all your hard-earned cash through the first two. You are
almost guaranteed to lose it through the last one. No matter what… Uncle Sam is coming for what is
rightfully his.
The only thing that matters at the end of the day when it comes to precious metals…

Holding It Is Owning It
and
If You Don't Hold It You Don't Own It
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