In a new report, Lear Capital shares insights on risks posed by
digital currencies, de-dollarization, and soaring American
debt.
LOS
ANGELES, May 15, 2024 /PRNewswire/ -- Lear Capital,
a leader in the precious metals industry, today released a report
highlighting several emerging threats to the U.S. dollar and
advising investors to consider diversifying into gold to protect
their wealth.
The report, "Digital Dollars, De-Dollarization, and Debt — How
Gold Might Be Your Best Defense," outlines how the rise of central
bank digital currencies, global de-dollarization trends, and
mounting U.S. debt present serious risks to the future purchasing
power of the dollar.
"As much as your car runs on gas, global markets run on
dollars," wrote Rachel Mills, Lear
Capital's global financial research specialist and author of the
report. "But today, not all cars run on gas. And global markets are
beginning to diversify away from their reliance on the dollar, too.
Why does this matter and how could it unleash an avalanche of
inflation on our economy? How might our government respond?
"Gold has historically served as a reliable hedge against
inflation, preserving the purchasing power of savings in times of
economic turmoil. Unlike fiat currencies, which are susceptible to
manipulation by central banks, gold has maintained its intrinsic
value over time."
The report explains how over 130 central banks, including the
U.S. Federal Reserve, are exploring issuing central bank digital
currencies. While presented as a way to make payments more
efficient, Central Bank Digital Currencies — or digital dollars —
also pose major privacy concerns by giving governments the ability
to track and control citizens' spending.
On the global stage, U.S. sanctions against Russia are accelerating efforts by
China, Russia, and other nations to conduct
international trade without using dollars. This de-dollarization
trend threatens to reduce demand for dollars and unleash inflation
at home as those dollars flow back to the U.S.
At the same time, U.S. government debt has soared past
$34 trillion, with annual interest
payments approaching $1 trillion.
History shows that gold prices are highly correlated with debt
levels, suggesting that gold will rise as debt inevitably
grows.
"Consider the benefits of diversifying into precious metals,
which historically have retained their purchasing power over time,
even as dollars get inflated away," Mills wrote. "Did you know it
is possible to hold gold and silver in a tax-advantaged IRA
account? Lear specializes in gold IRAs and we would be delighted to
answer any questions about opening one of these accounts."
Lear Capital's report concludes that investors would be wise to
consider following central banks' lead and allocating a portion of
their savings to physical gold, which can be purchased directly or
held in a self-directed precious metals IRA. Over the past two
decades, gold has appreciated 540%, far outpacing the growth in
median incomes and consumer prices.
To read the full report and learn more about how Lear Capital
can help investors purchase physical precious metals, visit
learcapital.com or call 800-965-0580.
About Lear Capital
Founded in 1997 by precious metal expert and analyst
Kevin DeMeritt, Lear Capital offers
investors the chance to diversify their portfolios with unique
approaches to purchasing precious metals, including gold and silver
individual retirement accounts. Employing a team dedicated to
providing investors with real-time information and pricing on gold,
silver, platinum, and palladium, Lear Capital is uniquely
positioned to offer investors the convenience of online
capabilities with the expertise and support of a brick-and-mortar
institution. To date, the team has handled more than $3 billion in trusted transactions.
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SOURCE Lear Capital