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Gold is Sounding the Alarm: Ignore Short-Term Dips, Focus on Survival

Taylor Kenney - ITM Trading Oct 15, 2024

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Gold, is once again sounding the alarm. As inflation continues to chip away at your wealth and global uncertainty escalates, it’s more important than ever to understand how gold can help safeguard your financial future. While some may focus on short-term dips in the gold price, history teaches us that gold is not a short-term play—it’s a long-term hedge against currency collapse, inflation, and hyperinflation. Let’s explore why that is, and how you can use gold to protect your wealth.

Gold’s Warning Signs: What’s Happening in the World Economy?

In the past 12 months, gold prices have hit all-time highs, rising by 34%. In some surprising news, even stores like Costco are selling gold in massive quantities. Meanwhile, countries like Zimbabwe are replacing their collapsing currencies with new ones backed by gold, hoping to stabilize their economies.

Why is this happening? Because gold has always been a hedge against inflation and economic instability. In times of currency collapse—like those seen in Weimar Germany, Argentina, and Venezuela—gold has maintained its value while fiat currencies became worthless. Those who held gold, the true measure of wealth, were able to preserve their purchasing power when others lost everything.

As the U.S. dollar continues to lose its strength and inflation remains high, it’s becoming clear that the current system is unsustainable. Since 2020, the U.S. national debt has increased by more than $12 trillion, and the purchasing power of your dollars has decreased by over 25%. While inflation may appear to be under control, the reality is that your savings are being eroded day by day. Any dollar-denominated assets you hold—cash, bonds, or savings accounts—are losing value as inflation takes its toll.

Hyperinflation: Could It Happen Here?

Some may think that hyperinflation is something that happens only in other countries. But if history has taught us anything, it’s that hyperinflation can happen anywhere. Look at Weimar Germany, Argentina, or Venezuela—all countries where the cost of goods doubled overnight and their currencies became worthless. In each of these cases, people who held onto their local currency lost everything. In contrast, those who owned tangible assets like gold and silver protected their wealth and even thrived in these difficult times.

The U.S. may not be facing hyperinflation today, but the signs of future economic trouble are unmistakable. With national debt growing at a rate of $7 million per minute, the cost of servicing that debt is ballooning. Right now, the U.S. government is spending nearly $1 trillion just to pay the interest on its debt—a trillion dollars that could have been spent on supporting communities, addressing natural disasters, or growing the economy.

As debt continues to rise and inflation remains high, smart money is flocking to gold. Central banks around the world, especially in emerging markets, are buying gold at unprecedented levels. Why? Because they know that the worst is yet to come. They’re preparing for a future where inflation and currency collapse could disrupt global economies, and they want to be protected.

Why Gold is a Safe Haven

Gold has always been a store of value during economic uncertainty. Unlike fiat currencies, which can be printed in unlimited quantities, gold is finite. Its scarcity is what gives it lasting value, especially during periods of inflation or hyperinflation. As the cost of living rises and governments continue to devalue their currencies, gold stands strong as a hedge against these forces.

When you buy gold, you’re not just investing in an asset—you’re protecting yourself from the inevitable collapse of fiat currency. In times of crisis, people flock to gold because it provides financial security outside of the failing system. And this is why central banks and wealthy individuals alike are stocking up on gold.

It’s important to remember that gold is not about timing the market or capitalizing on short-term price fluctuations. Instead, gold is about getting outside of the system—a system that is increasingly designed to fail. Gold allows you to preserve your wealth in a world where inflation is eroding the value of every dollar you own.

Taking Action: How to Protect Your Wealth

At ITM Trading, we often hear the same question from our clients: “What do I actually need to do to protect my wealth?” The answer is simple: make sure you have a plan that includes physical gold and silver. These tangible assets have withstood the test of time and are crucial in safeguarding your financial future.

If you’ve lost faith in the current financial system—if you believe that inflation will continue to rise and that the currency collapse we’ve seen in other countries could happen here—then now is the time to act. Our team of experts is here to help you create a strategy that aligns with your goals and prepares you for the challenges ahead.

Whether you’re just starting out or looking for a second opinion, we’re here to provide personalized advice tailored to your specific concerns. Talk to one of our expert analysts today to ensure that your portfolio includes the protection you need. Call us or click the link below to schedule a time to speak with one of our trusted advisors.

To learn more about how gold and silver can protect your wealth, schedule a call with one of our expert analysts today. Don’t wait for the next economic crisis—prepare now to ensure your financial security in the future.

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