In an era of rising inflation rates, a potential housing market crisis, and a silent Federal

Reserve, the need for stable investments becomes increasingly crucial. How has gold

and silver proven their resilience against the backdrop of a looming US economy? We

delve into their historical performance and recent market outperformance over the past

six months, highlighting why these precious metals are considered anchors of stability

in uncertain times.

1. Rising Inflation and the Role of Precious Metals:

As inflation rates climb, the value of fiat currencies erodes, prompting investors

to seek safe-haven assets. It’s no wonder that as core prices in America

(excluding food and energy) rose by 5.3% in the year to May, investments such as

Gold and silver have become increasingly appealing. It’s long-standing reputation

as a hedge against inflation, offers a tangible store of value that can withstand

the erosive effects of currency devaluation. Their scarcity and intrinsic worth

provide investors with a reliable means to preserve wealth in inflationary


2. Housing Market Drought and the Flight to Tangible Assets:

Amidst concerns of a housing market drought, the 2007-2009 recession serves

as a stark reminder of the housing market’s influence on the broader economy.

As we endure a period of severe shortage of available homes, the investor should

proceed cautiously to avoid this in-balance in supply-and-demand resulting in

soaring prices, fierce competition among buyers and unpredictable mortgage

rates. With no crystal ball to help guide them investors may look to seek

alternative investments that can weather the storm. Precious metals have long

proven their resilience, making them attractive options when the housing market

faces challenges. These precious metals are not tied to the performance of real

estate or mortgage markets, providing diversification and stability to investors.

3. The Silent Federal Reserve and Balance Sheet Concerns:

The Federal Reserve’s reluctance to address its balance sheet raises concerns

among investors. Turning a blind eye the Federal Reserve has given watch to a

falling Treasury and mortgage-backed securities, allowing it’s value ot dip from

$8.5trn to $7.7trn. As the central bank remains silent on potential actions,

uncertainty looms over the economy. In such times, gold and silver emerge as

reliable assets that are not subject to the decisions and actions of a central

authority. Their value is not dependent on the monetary policies of a single entity,

making them less susceptible to the consequences of a Federal Reserve who has

turned a blind eye.

4. Recent Market Outperformance of Gold and Silver:

Recent market trends have showcased the strength of gold and silver. Despite

the economic challenges mentioned, both precious metals have outperformed

the broader market over the past six months. In an article by Fox Buisiness,

Jonathan Rose, CEO of Genesis Gold Group, said, “Both gold and silver added

15% to 20% over the last six months, while the overall market was in the range of

2% to 4% growth.” He added, “Things are just starting to heat up,” “In fact, the

long-term projections in the precious metals market could get even higher.”

History has proven time and time again, Gold and Silver’s ability to sustain growth

and act as a safe-haven investment for investors seeking refuge from market

volatility and economic uncertainties.

As the US economy faces rising inflation rates, a volatile housing market, and a

turbulent economic future, the need for stable investments becomes paramount. Gold

and silver have withstood the test of time, proving their reliability as anchors of stability

in uncertain economic climates. Their ability to hedge against inflation, provide

diversification, and outperform the market over the past six months underscores their

strength as investment options. When faced with economic turbulence, investors can

turn to gold and silver as trusted assets that hold their value and provide stability amidst

the storm.

Disclaimer: This blog post is for informational purposes only and should not be

considered financial advice. Investors should conduct their own research and consult

with financial professionals before making any investment decisions. Past performance

is not indicative of future results.