What Should I Invest in, in Light of the National Debt Crisis?

What Should I Invest in, in Light of the National Debt Crisis?

May 22, 2019

It’s no secret that the U.S. government’s national debt crisis is becoming an increasingly significant problem. Each year, Congress must vote to raise the threshold of the debt ceiling, further debilitating the nation’s credit rating and its ability to borrow in the future. The specter of the national debt is leading some to speculate that large-scale currency collapse could be imminent.

If you’re not concerned about the impact that the government’s indebtedness could have on your daily life, you should be. Smart investors are identifying safer investment vehicles, free from the confines of the national financial system. If you want to find a safe, secure way to store your assets in the event of a large-scale financial crash, you may want to buy gold.

Precious metals have long been an asset capable of rising above the confines of a traditional currency, for a variety of reasons. Precious metals are recognized for their inherent and historical value; additionally, precious metals have a number of industrial and technological uses, meaning that they’ll always be in high demand.

While gold is the most versatile and valuable precious metal to invest in, you may also consider several alternatives, like gemstones, platinum, bronze and silver. Regardless of the precious metal that you opt to invest in, there are a number of benefits associated with precious metal investing that can help you stave off the negative economic impacts of the national debt crisis, including:

  • Rising demand: One of the primary benefits associated with precious metal investing is the fact that the demand for most precious metals, especially gold, is always rising. In addition to their inherent value, metals and gemstones also are used in a variety of industrial and technological processes, meaning that they’ll never go out of vogue.
  • Protection against inflation: In the event of a government debt crisis reaching a climactic point, inflation is likely to spiral out of control. You don’t have to look very far to see examples of this occurring, both in the present and in the recent past. Wheelbarrows full of money won’t be able to pay for a hamburger—gold, however, maintains its value, even during periods of high inflation.
  • Independence from the financial system: If the U.S. financial system ever were to truly collapse, the dollar would be completely useless. The U.S. dollar is a fiat currency, meaning that the power of the financial system is the only thing providing it with value. Gold and other precious metals, however, maintain their value, independent of the financial system.

Gold Wealth Financial is one of the only precious metals investment advisors approved by Investopedia. This means that you can trust us to provide you with high-quality, sound investment advice. We’re here to help you maintain and build your wealth, regardless of the surrounding economic conditions. Reach out to one of our trusted investment advisors today to learn which types of precious metals may be right for your investment objectives, and get tips on how you can begin to buy gold.

- by Steve Hunt

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