Gold and silver are cornerstones of any well-balanced portfolio, as we’ve been saying for a very long time at Portfolio Wealth Global. However, there are big players in the global markets that would want you to believe otherwise; their agenda is to push fear and rhetoric on to the unsuspecting public, robbing us of our drive to self-educate and make decisions for ourselves.
Thankfully, if you’re reading this right now, you have the opportunity to get informed and prepare for the next big move in the precious metals market.
The future of gold and silver will become much clearer when we listen to Portfolio Wealth Global’s interview of Chris Martenson, a world-recognized figure and a truly brilliant economist with a track record of nailing important trends that are covered by no one else in the media. Chris is an economic expert, researcher, and futurist who is the cofounder of PeakProsperity.com.
Holder of an M.BA. from Cornell University and a Ph.D. from Duke University, Chris predicted the housing market collapse and the 2008-2009 stock market correction years in advance. He rose to prominence with the launch of his video seminar The Crash Course, which focuses on the interconnected forces of the economy, energy, and the environment. His insights are in high demand by the media as well as economic and academic institutions around the world.
With the federal funds rate hovering at around 2%, investors might wonder whether gold, already at an attractive historical valuation, is running the risk of entering a new bear market akin to what was witnessed in the 1970s.
To counter this, Chris explains that a strong predictor (or at least a strong correlation) for gold is the real interest rate (“real” meaning after you subtract inflation from the equation). Currently the real interest rate is at around zero, though it looks like it will be turning positive within the next year.
Another strong correlation for gold is federal deficit spending, which is Chris points out that we’re swimming in a sea of red link now, with a budget deficit in the trillions. If a recession occurs, these numbers could actually double, making the situation even more unsustainable. In any case, deficit spending is worth watching because of its very strong correlation to gold prices.
What does this mean for gold right now? For Chris Martenson, gold is a hedge not so much again inflation but against systemic financial risk.
A large amount of gold has left the West, and particularly the United States, London, and Switzerland, and has gone east to China and India, as well as to Russia. This flood of gold from West to East is important to track as it signals a change in the geopolitical guard; the days of U.S. dominance on the world stage are fading fast.
For precious metals investors, Chris sees that interest rates are heading upwards – and just as importantly, so is deficit spending. Governments and central banks have a vested interest in keeping silent about their spending and money-printing habits, but watchdogs like Chris Martenson can be counted on to sound the alarm as the fat cats fritter away our financial future: savings accounts, retirement accounts, 401(k)’s and all.
With precious metals and carefully selected stocks in the metals and mining sector in our portfolios, it is possible to safeguard ourselves against this wrongdoing from the uppermost levels of the government and big banks.
Protecting yourself with an allocation in precious metals is an absolute necessity in this dangerous environment. You can download our full exclusive report here to arm yourself with the latest research, and specific steps you can take, to prepare yourself right now.