The KRLA 16th Annual Wealth Summit provides attendees with insights and strategies to help them grow and protect their wealth. This year’s summit focuses on diversifying investment portfolios with precious metals. Hosts Jennifer Horn and Grant Stinchfield with special guest Ken Russo, Sr. VP of the Midas Gold Group, discuss how to make informed investment decisions and navigate the complexities of the market. Ken provides a comprehensive rundown of the warning signs indicating an impending economic crisis, including rising inflation, increasing debt levels, a weakening dollar, and stock market volatility. He also focused on the dangers of a digital monetary system and the loss of financial privacy.
Considering the warning signs of an impending economic crisis, Ken Russo discusses diversifying one’s investment portfolio with precious metals. This becomes even more essential for many reasons.
Advantages of Precious Metals vs Paper Assets
- Safe-Haven Assets
Precious metals such as gold and silver have historically served as safe-haven assets during economic uncertainty and market volatility. They tend to hold their value or even increase in price during inflation or political instability.
- Inflation Hedge
Investing in precious metals can provide a hedge against currency devaluation, which can erode the purchasing power of traditional paper assets like stocks and bonds.
- Security During Uncertainty
Precious metals can offer long-term protection against wealth erosion caused by geopolitical tensions, natural disasters, and other unexpected events.
- The Reliable Store of Value
In the past, the US currency was backed by gold, meaning that the value of the US dollar was directly tied to the value of gold held by the government. This system, known as the gold standard, provided a reliable store of value for currency holders. The reliability of gold as a store of value stems from its intrinsic properties, such as scarcity, durability, and divisibility.
Unlike paper currency, which can be easily printed and devalued, gold is a finite resource that cannot be created or destroyed. As a result, it maintains its value over time, making it a trusted asset for investors and central banks. Even though the gold standard is no longer in place, gold remains a popular investment option for those seeking a reliable store of value and a hedge against inflation and currency fluctuations.
Silver, the Strategic Metal
Silver can be a valuable addition to an investment portfolio as a strategic investment metal with both industrial and investment demand drivers. Silver is often considered a strategic investment metal due to its unique properties and numerous industrial applications.
Unlike gold, which is primarily for investment and jewelry purposes, silver has a variety of industrial uses, including the production of electronics, solar panels, and medical equipment. As a result, the demand for silver comes from technological innovation, economic growth, and traditional investment demand. Silver is also a more affordable investment option than gold, making it accessible to a broader range of investors. Furthermore, silver can offer diversification benefits to investment portfolios, as its price movements don’t correspond with those of other asset classes.
Central Bank Digital Currency
Introducing a Central Bank-issued Digital Currency (CBDC) raises concerns over the loss of privacy and the dangers of excessive government control. Government-issued digital currency could erode personal privacy and give governments unprecedented access to citizens’ financial activities. Unlike physical cash, which can be used anonymously, CBDC transactions would be fully traceable and subject to government surveillance.
A CBDC could allow governments to monitor and control how people spend their money, which could lead to abuse of power and infringement on personal freedoms. Excessive government control over financial transactions could also stifle innovation and limit economic growth by discouraging entrepreneurial activity and reducing the ability of individuals and businesses to make independent financial decisions.
While a CBDC may offer benefits such as increased efficiency and reduced transaction costs, it is essential to consider the potential risks to privacy and individual freedoms carefully.
California DMV is already on the blockchain
California’s plans to issue digital wallets and driving licenses raise concerns about privacy and security. The digital wallets would allow individuals to store and manage their identification documents, such as driver’s licenses and state IDs, on their mobile devices. While the convenience of a digital wallet is appealing, the potential risks of having sensitive personal information stored on a digital platform cannot be ignored. A savings tax in California is also being proposed on the ultra-wealthy as a way to tax money that may just be sitting in a bank account and not being spent.
A data breach or hacking incident could expose individuals’ private information, leaving them vulnerable to identity theft and other forms of fraud. Furthermore, issuing digital driver licenses may create difficulties for law enforcement officials who rely on physical licenses to verify an individual’s identity and driving privileges. In addition, some individuals may not have access to or are not comfortable using digital technology, which could create a digital divide and limit their ability to participate fully in society. Therefore, it is crucial for California to carefully consider the potential risks and implications of issuing digital wallets and driving licenses and to ensure that adequate measures are in place to protect individuals’ privacy and security.
Ken points out that owning physical gold and silver are ways to maintain control and privacy of your wealth.
Gold has been money since the Roman Empire
Money is a medium of exchange that facilitates transactions of goods and services. For something to be considered money, it should possess specific characteristics that make it widely accepted and easily exchangeable. These characteristics include:
Money should be easy to carry and transport from one place to another.
Money should be able to withstand wear and tear over time and maintain its value.
Money should be divisible into smaller units to facilitate transactions of different sizes.
Money should be identical in value and quality, regardless of the source or origin.
- Limited Supply
Money should be scarce enough to maintain its value and prevent inflation.
Money should be widely accepted as a means of payment for goods and services. And it should not be politicized.
Each money unit should be interchangeable with another unit of the same value.
Ken warns that the economy is going to get worse. Inflation is here to stay, bonds will crash, and commodities are about to boom.
Gold has historically been used as money because it possesses many characteristics. Gold is portable, durable, divisible, and uniform in quality. Gold is also scarce, as it is a limited resource that is difficult and costly to mine. Because of its scarcity, gold maintains its value over time and is not subject to inflation. Finally, gold is widely accepted as a form of payment, making it a reliable medium of exchange.
Start today to diversify and safeguard your nest egg
Midas Gold Group is a reputable and trustworthy resource for buying gold due to several factors. Firstly, the company has a long-standing reputation in the precious metals industry, with over a decade of experience in buying, selling, and investing in gold.
Their transparency, reliability, and expertise have built a loyal customer base over the years. The company offers a wide range of gold products, including coins, bars, and bullion, providing customers with various options to suit their preferences and investment goals. Midas Gold Group ensures that all its products are of high quality and purity. Each item is carefully inspected and authenticated before being offered for sale.
Midas is known for providing excellent customer service, with a team of knowledgeable professionals available to answer any questions and guide customers through the buying process. Overall, Midas Gold Group is an excellent resource for buying gold, providing customers with a safe, reliable, and convenient way to invest in this precious metal.