Thursday, August 22nd, 2019 MST

A financial tsunami

There are a lot of reasons for buying gold and silver but none better than the financial tsunami that is about to wash over the federal budget as some 10,000 Baby Boomers turn 65 daily in the United States, swelling the rolls of Americans who depend on Social Security and Medicare.

______________

At some point, the irresistible force of insufficient government revenues is going to meet the immovable object of entitlement commitments.

John Phelan
The Foundation for Economic Education
October 31, 2018
______________


When was the last time you heard any member of Congress raise the issue?  You probably can’t remember.  Yet the problem is fast approaching, and waiting until the last moment will exact excruciating pain on the those who will see their benefits cut and those will be forced to pay into the system at a higher rate.

With the political climate such as it presently is, no doubt there will be calls for means testing, under which the government will determine how much Social Security and Medicare you are eligible to receive.  Some will have their participation reduced substantially, and some (the “wealthy”) being cut out completely.

As the Social Security and Medicare problem becomes recognized, gold and silver will be among the first investments that respond just as they did at the onset of the World Financial Crisis.  Gold moved from just above $600 in 2007 to $1900 in 2011, with silver climbing from just short of $13 to nearly $50 during the same period.

Gold and silver are presently reasonably priced, with gold only 17% higher than its 2015 low and silver only 20% above its 2015 low.  The potential for upside movement far outweighs the metals’ downside risk.

One Response to “A financial tsunami”

  1. Geoffrey Boynton

    The recklessness and unrelenting theft of the government of the store of value of the savings of the citizens of the United States is the unrecognized tragedy of our times. The history will be written in blood and recorded as the greatest representational cowardice of American government.

    Reply

Leave a Comment

Precious Metals Data, Currency Data, Charts, and Widgets Powered by nFusion Solutions