What Americans Fear Most
You spoke. We listened. Here’s what you told us.
Last week, we polled our email list and social media followers to learn what issues would pose the greatest threat to economic security. Here are the results.
The most significant worry, cited by 21%, is the nation’s growing debt. Close behind, 18% are troubled by rising living costs and inflation affecting daily expenses, while 17% are worried about the Federal Reserve’s money printing, further devaluing the dollar. Additionally, 15% pointed to foreign challenges to the U.S. dollar, such as BRICS nations and international trade dynamics, as significant threats.
Smaller but notable concerns included the potential unavailability of pensions or Social Security (9%) and risks tied to technology, such as AI and cyber terrorism (7%). Only 4% of respondents were concerned with stock market volatility, and 5% expressed fears about a possible recession. Finally, 2% selected “Other” for unspecified issues.
Certainly, this is a worrying list. However, gold and silver offer a time-tested way to alleviate the impact of many economic and financial threats due to their historical stability and intrinsic value. Here's how:
Resilience Against Technological Risks and Privacy Threats: Unlike digital assets or stocks, which are subject to technology and security concerns, physical gold and silver are tangible assets that exist outside of digital platforms and cyber vulnerabilities. This tangibility provides peace of mind in an era where digital assets face privacy and security threats. Gold and silver's resilience as tangible assets over centuries affirms their role as stable, private investments.
Hedge Against Inflation and Rising Costs: Historically, gold and silver have retained their value during periods of high inflation, making them a reliable hedge as living costs rise. Unlike fiat currencies, which can lose purchasing power when more money is printed, precious metals hold intrinsic worth, protecting against the erosion of cash savings over time. For example, during the 1970s inflation surge, gold prices increased more than fivefold, demonstrating their resilience against inflationary pressures.
Protection from Dollar Weakness and Currency Shifts: With foreign powers like BRICS seeking alternatives to the U.S. dollar in international trade, the dollar's global role may face challenges, potentially impacting its value. Precious metals, which have been globally recognized and valued for centuries, serve as a wealth store that remains valuable across borders, providing a hedge against currency instability. Gold's longstanding role in global finance highlights its value when national currencies lose favor.
Store of Value Amid National Debt and Fiscal Instability: As national debt grows and deficit spending becomes more common, the dollar’s long-term stability could be under threat. Historically, gold and silver have acted as reliable stores of value in times of fiscal instability, as they aren't tied to government liabilities or devaluation risks related to debt crises. In times of economic distress, like the 2008 financial crisis, gold prices surged, reflecting a broader trend where investors turn to metals.
Hedging against Stock Market Volatility and Recession Risks: Precious metals often perform well when the stock market faces volatility or the economy enters a recession. Historically, during market downturns, gold and silver prices have tended to rise as investors seek safe havens. For instance, in the aftermath of the 2000 and 2008 financial crises, gold saw substantial gains, offering portfolio resilience when other assets faltered.
Securing Retirement and Social Safety Nets: Concerns over the reliability of pensions or Social Security highlight the potential need for assets outside government control. Historically, gold and silver have provided a stable wealth preservation method, supporting retirement savings independently of public programs and ensuring a secure, tangible asset to fall back on.
Thank you to everyone who participated in our survey. At Lear, we value your insights and opinions. Three randomly chosen winners will be thanked with a free 1.5 oz silver coin. If you have questions about gold or silver, or want more information about the historical performance of precious metals, please call 1-800-576-9355.