Month: April 2022

In the past few weeks and months, we at U.S. Money Reserve have seen a large influx of Americans looking to add gold (or, in many cases, more gold) and other precious metals to their portfolios. And if you watch the headlines like I do, it’s easy to see why. A number of news stories suggest situations where gold and other precious metals have traditionally served as safe-haven assets or have otherwise historically seen growth. In this Gold News & Views, we’ll look at five reasons that you may want to add gold or other precious metals to your portfolio now.

1) “Gold Prices Score a 5th Gain in a Row” —MarketWatch

On April 13, 2022, MarketWatch wrote that gold continued an upward trend “after the U.K. posted ‘higher than expected and accelerating’ inflation numbers.” The same day, CNBC wrote, “Gold prices hit a one-month high…as rising consumer prices boosted its appeal as an inflation hedge.”

I’ve written about inflation here numerous times. As inflation continues to increase, the money in our wallets does less and less for us and our families. Thankfully, gold has historically acted as a hedge against inflation.

2) “London Market Blocks Newly Refined Russian Platinum and Palladium” —Reuters

On April 8, 2022, Reuters reported that the London Platinum and Palladium Market decided to suspend trading of the precious metals from Russia, which ranks first in the world in terms of palladium production and second in terms of platinum production. As Reuters reports, “Prices of palladium surged as much as 11%,” and platinum also saw a price increase.

I often talk about looking for opportunities in the face of uncertainty. If the world continues to decrease its reliance on Russian precious metals exports, supply shortages could potentially impact prices.

3) “Russia just made a case for owning gold—and nobody noticed” —MarketWatch

In an opinion piece published by MarketWatch on April 2, 2022, financial columnist Brett Arends notes that Pavel Zavalny, the head of the Russian State Duma’s energy committee, recently stated that rather than the world reserve currency of the U.S. dollar, Russia was calling on other nations to pay for their resources in gold. This is interesting to me, because on March 25, 2022, The Wall Street Journal reported that “the U.S. is clamping down on Russia’s ability to sell its gold reserve and raise money.” However, Arends points out that Russia’s government is “struggling for money, and the ruble has collapsed,” so perhaps they see gold as their only way out—a reminder of how powerful gold is as a store of wealth.

If you’ve read some of our Special Reports, you’ll know that Russia’s de-dollarization has been going on for some time. But the current geopolitical landscape may speed up that process and impact gold along the way. According to Arends, this latest move could mean “a lot” for gold, “especially if Russia’s lead is followed by countries such as China, India, and others.”

4) “A ‘recession shock’ is coming to the U.S., Bank of America Says” —Fox Business

On April 11, 2022, Fox Business reported that according to Bank of America economists, “The U.S. economic outlook is darkening so rapidly that a recession may be on the horizon.” On April 12, 2022, Jeffrey Gundlach, CEO and CIO of DoubleLine, used the word “calamity” to describe what may be coming for the stock market.

You can see where this is going. Gold has helped to reduce portfolio losses during previous financial shocks and has acted as a historic store of wealth during times of economic uncertainty. It’s why we like to consider gold as a form of “wealth insurance.”

5) U.S. Money Reserve is America’s Gold Authority^®.

I strongly believe that education is the key to making good decisions, be it for your portfolio, your health, or any other aspect of your life. That’s why we take the time to review the latest headlines, prepare our Special Reports and Global Gold Forecasts, and supply our clients with other exclusive content and information to help them make the best decisions for their unique financial portfolios.

If you believe as I do—that now may be a great time to consider creating or expanding your precious metals portfolio—I hope that you’ll entrust us with being your guide through the world of physical precious metals ownership and precious metals IRAs.

To learn more about the benefits of physical gold ownership, CLICK HERE to request a FREE copy of our Gold Information Kit.

The post 5 Great Reasons to Add Precious Metals to Your Portfolio Today appeared first on U.S. Money Reserve.

“The spot price for gold and silver is determined by futures contracts being traded back and forth.”

— Precious Metals Advisor Todd Graf

There’s a lot of confusion surrounding the spot price and physical price of gold and silver, as well as other precious metals. Many investors are wondering why there’s a difference between these price indicators and how it should impact their investing strategies.

As with all forms of investment, knowledge is vital for making informed and financially-sound decisions. Watch the video to hear Sr. Precious Metals Advisor Steve Rand and Precious Metals Advisor Todd Graf explain the relationship between the spot and physical prices of precious metals.

What is the spot price for metals and how is it determined?

Gold prices are determined by many factors, but the physical price of precious metals is pretty straightforward. Conversely, understanding the spot price of gold is a little trickier. In short, the spot price for gold, silver, and other precious metals is determined by futures contracts which are simply agreements to buy or sell a commodity asset at a predetermined time in the future.

Another way to think about the live spot price of gold and silver is the value of these precious metals in financial markets. It’s important to note that investors trade paper metals on the markets which aren’t backed by any physical precious metals. Rather, these paper assets offer exposure to the price action of gold without requiring an investor to hold physical metals.

Suggested Reading:

Unlock Silver Investor Trade Secrets in our Investor Report.

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• How These 10 Factors Regularly Influence Gold Prices
• 10 Factors that Influence Silver Prices

Why is there a difference between the spot price and physical price of gold?

Even with a clearer picture of what separates the spot price of precious metals from the physical price, you’re probably still wondering why there’s a price difference between these metrics. Many investors who trade futures contracts – paper that represents gold and silver – don’t end up converting those assets into physical metals.

As a result, more paper assets are being shuffled around between traders than their physical counterparts. When you consider the fact that banking institutions and other big players tend to focus on trading paper metals, the gap between these assets is clearer. This trading discrepancy explains the price differential between the spot price and physical price of gold.

The separation between the spot price and physical price could go higher.

Generally speaking, large investors such as banks prefer trading paper metals over physical gold and silver, but the troubling economic situation is starting to turn the tides. More and more entities are gobbling up the limited supply of physical gold and silver in anticipation of worsening market conditions.

In fact, the U.S. Mint recently reported the strongest gold bullion demand in 23 years. As a result, suppliers are running short on many gold and silver products which makes it harder for retail investors to get their hands on gold and silver coins, gold bars, silver bars, and other physical items. The growing demand and supply disruption are causing a greater schism between spot and physical prices.

Don’t wait to buy gold. Buy gold and wait.

Economic pressures such as rising inflation and the devaluing of the dollar are forcing people out of greenback-linked assets and into inflation-proof commodities like precious metals. This modern-day gold rush on the limited supply of physical metals is resulting in shortages, supply disruptions, and a difference between spot and physical prices.

Investors should get their hands on physical precious metals before the worsening economic crisis further limits product availability. It’s always smarter to buy gold and silver wait than waiting to buy gold and silver. Learn everything you need to know about buying gold and silver by requesting our FREE precious metals investment guide today.