$3,200 Gold - How the U.S. Debt Trap Could Get Us There

Provided by Lear Capital. Questions? Speak to a specialist at (800) 428-1493. 2 Benjamin Franklin spoke these famous words in 1789, 124 years before the creation of the Federal Reserve. The 1913 Federal Reserve Act gave the US government its monetary printing press. 1913 was the camel’s nose sneaking under the tent. Monetary policy has loosened up tremendously since then. The last remnants of the gold standard were severed in 1971. With an ever- increasing welfare state, artificially low interest rates, too-big-to-fail bailouts and quantitative easing, our money printing and therefore our debt, has ballooned from $77 million in Franklin’s day to over $33 trillion today. The price of gold has risen right along with the inflation brought about by the debt and money printing. There is no end in sight, and no brakes on this train of runaway money printing. If Ben Franklin were here today, he would see that money printing has become as certain as death and taxes. This report explores the relationship between modern monetary policy and the price of gold. Read on. In an era of increasing uncertainty and economic volatility, it’s essential to consider alternative assets that can protect your wealth. Gold, often dubbed the “ultimate hedge,” has a remarkable track record of helping to preserve wealth when governments are printing money, which seems never ending, and the rising debt that predictably follows. Buying some gold and silver could be one of the most strategic financial moves you make this year. Debt: A Simple Yet Powerful Indicator of Rising Gold Prices The relationship between government debt and the price of gold is remarkably straightforward over time: when debt rises, the price of gold usually follows. This seemingly simple concept may hold profound implications for investors seeking a potential safe haven in a world of economic uncertainty. The Road to $3,200 gold By Rachel Mills, Lear Capital Global Financial Research Specialist