Hubert Moolman
Fri, 10/09/2020 – 12:43
The dollar has recently been losing ground on the international stage. While a “rush for cash” is a frequent event during financial crises, this year’s fallout has proven to be different. Central banks across the world typically see the dollar as a safe haven worth holding in a crisis—but they appear to be doing so less and less.
According to Reuters, IMF data released on September 30 demonstrates that the dollar’s position in global reserves fell during Q2 of 2020. This likely indicates another sign that world banks are looking at the dollar less confidently than before to protect their assets.
Mounting debts and low interest rates have hurt the value of the dollar relative to other currencies recently, giving the Dollar Index notably poor performance in 2020. The dollar’s power itself had fallen 3% in Q2, its worst loss since June 2017.
As skepticism on the dollar’s power rises, so does popularity for competition against the dollar. China in particular has come back swinging.
MarketWatch reported that the yuan’s performance against the dollar in the third quarter of 2020 was only matched during the 2008 financial crisis. MarketWatch also reported that several analysts think China looks more fit to recover from the 2020 crisis, forecasting the Chinese economy to grow by 2% this year. In contrast, these same analysts are forecasting that the U.S. economy will shrink by 6.1%. Morgan Stanley analysts expect the yuan to account for up to 10% of global reserve assets by 2030.
It’s not just the dollar’s performance in comparison to the Chinese yuan that has some commentators warning caution. Several experts are warning that the dollar’s power could be declining in general.
Specifically, he cited deficit spending and monetary policy as forces that could weaken the dollar’s position over time.
When I’m reviewing my own portfolio, I often look to see what central banks are doing. If they are preparing themselves by reducing their dependence on the dollar as a reserve currency, I take note of that. While “cash may be king” as the old saying goes, keeping assets such as gold, which is often used as a hedge against the dollar, could prove beneficial in the long run. I suggest considering how well your portfolio is prepared for a decline in the dollar.
The post Signs the Dollar’s Reserve Currency Status Might Be at Risk appeared first on U.S. Money Reserve.
You’re probably familiar with the heavy hitters in precious metals—the coins that everyone seems to want, like the 1-oz. Gold American Eagle, 1-oz. Gold Krugerrand, and 1-oz. Gold Maple Leaf. But you have other options—options that offer opportunities for more variety and liquidity. Here, we break down the advantages of purchasing fractional coins.
One of the ways bullion gold coins are measured is by their weight. They can also be measured by gold purity. Fractional gold coins are those that contain a fractional amount of gold—less than 1 oz. They typically come in 1/2-oz., 1/4-oz., and 1/10-oz. amounts. Fractional coins are legal tender and have face value, but they’re not meant to be used as currency, The Royal Mint notes. The price of a fractional coin tends to decrease as the weight decreases, though there are some exceptions if a coin is highly sought after or incredibly unique.
Examples of fractional coins are:
Perhaps the most popular fractional gold coins are Gold American Eagles. The U.S. Mint minted the first American Eagle coin in 1986 under a congressional measure signed into law by President Ronald Reagan. Produced at the West Point Mint in West Point, New York, the gold coins come in 1-oz. ($50 legal-tender value), 1/2-oz. ($25 legal-tender value), 1/4-oz. ($10 legal-tender value), and 1/10-oz. ($5 legal-tender value) sizes.
Because the U.S. government backs them for their gold content, weight, and purity, American Gold Eagle coins are recognized in markets worldwide.
American Gold Eagles represent about 80% of the gold bullion in circulation in the U.S. They’re also composed of 91.67% gold, 3% silver, and 5.33% copper.
Fractional gold coins can offer several advantages. These include:
In the end, buying a fractional gold coin can be a great way to own a “piece” of a highly sought-after 1-oz. coin.
You can buy fractional gold coins online or over the phone today. Call 844-307-1589 to speak with a knowledgeable Account Executive and learn more about U.S. Money Reserve’s selection of exclusive fractional gold coins, like the 1/10-oz. Iwo Jima Gold Bullion coin.
The post Should I Buy Fractional Gold Coins? appeared first on U.S. Money Reserve.
“Now more than ever because of all the government overreach we’ve seen in 2020, people are concerned about their bullion and if it’s safe from government confiscation.”— Eric Sepanek, Founder of and Senior Advisor at Scottsdale Bullion & Coin
Are you concerned about the safety of your bullion? Particularly, if the government could confiscate gold again like it did during the Great Depression?
You’re not alone. As the presidential election nears, Scottsdale Bullion & Coin has seen a significant increase in calls from clients concerned about gold confiscation.
In the above video, SBC’s senior advisors Eric Sepanek and Steve Rand share why smart money investors are worried about the government taking their gold. Watch now.
If you’re like a lot of the investors we’ve talked to, you may want to know which bullion products could be exempt from confiscation should the government resort to that again.
While we can’t predict the future, we can show you what happened in the past. So you can make an informed decision about your gold investments.
Why did FDR confiscate gold? How did Congress and the Supreme Court react? Which gold products were taken from Americans?
Get answers to these vital questions and more in this video timeline of the government’s gold confiscation in 1933. Click here to watch Gold Confiscation: A Timeline of Events
9 minutes… that’s all it could take to arm yourself with the historical facts to make wise decisions about your financial future.
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