This Hurricane season, we along the Gulf Coast have dealt with an onslaught of tropical weather. When a storm is several days away from landfall and meteorologists are attempting to predict where it will hit, they use the term Cone of Uncertainty to assess the likely area where landfall will occur. We can use the same logic to surmise where the financial storm will hit and how this will affect gold and the U.S. dollar.
The Cone of Certainty: These are the facts. Our $27 trillion debt will never be repaid. The dollar will continue to lose its purchasing power as more currency floods the system. The price of gold will rise in accordance with the amount of new dollars created.
The Cone of Uncertainty: These are the things we don't know going forward. What will be the cost of another stimulus bill, and what effect will that have on the U.S. dollar? Will there be another national Covid-19 lockdown, and what effect will that have on the greater economy? Will tax rates be going up in the coming year? Because, if there's one thing the government needs while it creates trillions out of thin air is more of your hard-earned money. Please forgive the tongue-in-cheekiness, but these are real issues that we must be prepared to deal with.
The Risk of Not Having Insurance: The average American spends about $10,000 a year on health, home, and auto insurance combined. Of course, this figure changes depending on where you live, but this is an average of these three common types of insurance when added together. Individuals consistently pay these premiums year after year, and unless a claim is made, these premiums disappear into the proverbial pockets of the insurance providers.
Flood insurance is commonly held by people who live in hurricane prone regions. However, you cannot purchase a flood insurance plan when there is an active storm circulating. The window of time to protect yourself and your property has closed by that point, and you're on your own.
Gold is your insurance against what we know to be certain; debt and gold will rise together as currencies lose value. Don't find yourself left out in the storm with no insurance. Gold and silver are insurance for your wealth and life's work, and unlike any other kind of insurance plan you buy where your premiums disappear your gold never will. It can be passed on with confidence as a recognized store of value, providing generational insurance to the ones you love. No other insurance plan can offer that.
