Bill’s Blog | April 5, 2023
Most Canadians or our US neighbours have never purchased or considered physical Gold or Silver as part of their wealth planning. First, the main reason is a lack of financial education. Second, most are unaware of how Gold & Silver can significantly benefit you financially in many ways. We will look at that later. But, first, I will propose seven reasons to take action and then conclude with my offer to you.
If you were not aware, several significant emerging economic, geopolitical and social cycles are unfolding as I write this Blog. As these cycles play out over many years, these cycles are significant contributions to the growing global uncertainty. If you want to learn about these cycles, please take my Wealth Foundations course.
In today’s Blog, I want to share Seven Reasons you should consider and act upon my recommendation to own physical investment-grade Gold and Silver as a part of your overall wealth plan.
Reason # One: Most Canadians own “ZERO” physical Gold or Silver; in my humble opinion, this is a significant mistake. Why? Gold has been one of the best-performing asset classes since 2000 and outperformed the S&P 500 by almost 3 X! Silver was not far behind.
Reason # Two: After a three-year consolidation period (healthy and normal), Gold and Silver have continued in their long-term bull run, and I believe we are close to a massive upswing again. Gold is getting close to its all-time high of $2074.88 US, and it will not surprise me if it surpasses that price in 2023. Silver has jumped between $18 to $26 US in the last few years, but if it can break through $26 this year, I foresee $30 plus soon.
Reason # Three: Many Central Banks have been purchasing record amounts of Gold since late fall of 2022. Dozens of Sovereign Nations have followed suit. Why? I believe there are three main reasons:
- Gold is sound money with no counter-party risk.
- Gold is the perfect diversifier for your portfolio in growing, unstable times.
- They know another big crisis is brewing.
Reason # Four: Central Banks will not be able to control inflation without crashing the financial system and creating a severe recession/depression. Based on history, all credible economists would admit that central banks would need to raise rates several points higher than inflation. Even if you believe the official inflation rates (I believe inflation is far higher), we would need interest rates at 8% or higher to crush inflation. We have already witnessed “scene one” of what happens when CBs raise rates rapidly; think banking crisis! Sadly, more will come as many institutions and even countries are at record debt levels and will eventually default.
Reason # Five: During the banking crises a couple of weeks ago, the Fed reversed QT (quantitative tightening) and wiped out 50% of the year’s work in just a few days. We are getting close to the end of QT (maybe ??? one or two more rate hikes), then CBs will do what they always do (QE to infinity). The CBs will try to hold rates as long as possible (pretending they are committed to stopping inflation), but when things unravel in the subsequent crises, they will have to lower rates (most likely in the fall or early 2024). The outcome will create stagnation like the 1970s (high inflation, recession, energy crisis, growing unemployment) and the perfect environment for precious metals to explode higher! Gold exploded up 25X in the 1970s and Silver 40X. Will history repeat the same? Of course not, but I foresee a significant upside in both metals.
Reason # Six: Most Canadians have wealth in real estate or the stock/bond markets (unless you are a business owner). I like both categories as a part of a wealth plan; however, you are not adequately diversified. A solid wealth plan should work towards six or seven completely different asset classes, preferably non-correlating. For example, some real estate, a stock/bond portfolio, a basket of commodities, private equity, two or three insurance strategies, business ownership, a small portion in cryptocurrency for the brave in heart, and physical Gold and Silver as a foundation (Gold/Silver stocks, EFTs and Royalty/Streamers are speculations and higher risk). A person will not be financially ruined if they have a broad enough wealth portfolio, even if one or two assets are dramatically impacted. I have warned over a decade that many regions in the real estate market are exceptionally overvalued based on historical norms. The same is true for the stock/bond markets. If most of your wealth is in those two assets, you could experience significant losses.
Reason Seven: One day in the not-too-distant future, Gold and Silver will be unfordable and unavailable. As a result, you have massive price hikes when demand outstrips supply (this has occurred several times in history when you have a severe financial crisis). The Royal Canadian Mint and Europe’s largest Mint in Austria are both weeks behind based on current demand. As a result, the premiums will go up significantly (the price you pay over the spot price), and the wait times will be weeks or months if the bullion dealers will even sell what they can get. Again, I promise you I am not fear-mongering or using hyperbole. I have studied markets, monetary policy, precious metals, cycles and financial history for over 15 years. We are at a pivot point in financial markets which started last year, and I believe it will accelerate in the coming years. We all have a short window of time to get our financial houses in order, and I strongly recommend you have Gold and Silver as a part of that foundation.
So, my offer to you:
- Go on my website and download free Mike Maloney’s NY best-selling book, “Guide to Invest in Gold and Silver, Protect Your Financial Future.” You will most likely do nothing if you do not educate yourself on why Gold and Silver are critical to an overall wealth plan. This book is a great way to educate yourself with a few hours of reading.
- I will offer you a free consultation (in person, via Zoom or a call), evaluate your financial situation, and provide sound guidance.
- I have a preferred arrangement with one of Canada’s premier bullion dealers (over 50 years in business). I provide the purchase and sale of Gold & Silver at excellent rates and storage with one of the top private vaults in the world. Please reach out to me to set up a time to chat. You can do Cash or transfer existing RRSPs and TFSAs into precious physical metals. I can help anyone in Canada and the US with Cash deals only.
- I recommend you take action soon.
For those who celebrate Easter, have a wonderful weekend!
Bill Westmacott, Owner