The violent fall in all indexes has caused a hoarding mentality for investors and citizens. Grocery stores are out of toilet paper, hand sanitizer, and disinfectant wipes. Judging by the surge in demand for physical gold and silver recently, investors are starting to hoard gold and silver products causing shortages and delivery delays.
The market, banking system and economy may come to a standstill
The economy and markets are facing unprecedented times. With basically all non-essential businesses asked to close down over the next few weeks in many states, it is not crazy to assume that the markets or banking system may also be forced to shut down for a while. If your money as an investor is completely tied up in the banking system or financial markets, the ability to gain access to it for a while maybe hampered. The New York Stock exchange has gone mostly electronic as many traders in New York are being asked to stay home. New York is basically on mandatory lockdown. The Royal Canadian Mint is closing its doors for the next two weeks. That means the Mint will not be producing its gold and silver Maple Leaf coins. About 70% of all gold mined globally is refined in Switzerland. Three main refiners based in Ticino have been ordered to shut down their production lines temporarily. Argor-Heraeus, Valcambi, and PAMP are also affected. Physical gold and silver products look like they will be even harder to get in the months ahead.
Central banks and Fed embark on endless money printing
During the darkest days of the Lehman collapse in 2008, gold retreated by 20%. During severe financial stress, investors are typically looking to raise liquidity anywhere they can. Gold likely is used to raise cash to cover losses in other asset classes. As investors look at all the funds being pumped into the economy from thin air, the desire to hold dollars will diminish. The US Federal Reserve has promised to buy potentially an unlimited amount of government debt. Central banks have now become hedge funds as they print money and purchase bonds and stocks. The liquidity pump started aggressively again last September. Six months later the Fed’s balance sheet has expanded by almost $1 trillion. All central banks and governments are committing trillions to prop up failing economies and a financial system that is collapsing. Global money printing will increase to $10s and $100s of trillions. There is no saving the quadrillions of dollars in the derivatives markets. Fiat currencies could be valued at their intrinsic value of zero. The markets are collapsing quickly, but economies could bounce around the bottom for years and maybe decades.
The fall in paper metal prices are causing a disconnect in the price of physical products
Demand for physical gold has surged by tenfold in recent weeks. Bars and coins are being scooped up as quickly as toilet paper hits grocery store shelves. The premiums in physical products have soared as the paper markets sell-off with stocks and bonds. In a time of crisis is a hand sanitizer worth $10 a bottle? Is toilet paper worth $5 a roll at local grocery outlets? As markets sell-off and as central banks continue to print money at record clips, the price for physical products should continue to rise. Investors have been forced to pay up to $25 for an ounce of silver and over $1,850 for an ounce of gold for the privilege to hold on to some of their money. US dollar devaluation could send the price of bullion into the stratosphere. The biggest dealers in the country are asking investors to front the money and to expect delivery of their products in possibly two months. Unprecedented times bring unprecedented circumstances and decisions. As investors demand physical delivery for all their paper contracts, who knows what price they will be forced to buy gold to satisfy delivery. Bankers have leveraged the futures of good Americans with the knowledge that the Fed will come to the rescue. Folks the Fed and other central banks are running out of ammunition. A credit problem is not fixed by issuing more unlimited credit. The system is sick and broken beyond repair.
Midas Gold Group is working tirelessly to try and provide as many products as possible in a timely fashion. In recent weeks, clients have been able to visit our offices in AZ and CA and gone home with their gold and other metals. IRA metals are being liquidated and delivered as quickly as possible. We are facing strange circumstances. It is our motto and duty as a veteran-owned company to do everything in our power to fight for our clients in every way possible. The next decade is about survival. A decade marked by survival physically, mentally, and financially. Call Midas today at 480-360-3000 or 805-601-6000 and schedule a fifteen-minute consultation. The ability to hold in your hands a portion of your nest egg and legacy is worth it. Gold has stood the test of time as real money for 5000 years. It’s not too late to position yourself for the next decade. Everyone at one time was a new gold investor. Call Midas today at 480-360-3000 or 805-601-6000. The journey of a thousand miles begins with one step. Your family is counting on you to make that call.