Since 1970, gold has outperformed the stock market by 44%. Had you diversified a $100,000 portfolio in 2000 with 20% in gold and 80% in the DJIA, you would have $348,309 by the end of 2020 vs. $267,748 had you invested in the DJIA alone. That’s a 48% higher return based on just a small allocation to precious metal.

The year 2020 saw the biggest one-year debt spike in the United States, mostly driven by pandemic-related spending. Our government was already $28 trillion in debt when the Biden administration added another rescue package. All of this pandemic spending was piled on top of a dangerously rapid spike in debt that started with the 2008 financial crisis and never slowed down.

Businesses and employers struggle to find footing in what is left of the economy after COVID-19. Many of the negative effects from COVID-19 will continue to get worse before they get better, especially for small businesses, restaurants and small retail shops. The good news is that precious metals markets are a relatively stable haven in this storm. 2020 was a good year for both gold and silver with 24% and 48% returns respectively. Prices are still affordable given these assets have a fixed supply and have all the intrinsic qualities that make them an ideal money and investment.

The dollar has been the most critical reserve currency in the financial world for decades, largely due to the fact that OPEC oil contracts have been settled exclusively in US currency. That arrangement has been under immense pressure in the last few decades and is currently undergoing seismic shifts accelerated by the COVID-19 global pandemic. The dollar has been losing its global position and the Federal Reserve’s attempts at papering over the pandemic might only accelerate the pain.

China’s aspirations and overarching goals for dominance economically, politically and militarily is  too important to ignore. In a speech given in July 2020, then Secretary of State Mike Pompeo discussed several ways China is infiltrating US and global economic systems. US intellectual property has been stolen, costing millions of jobs. Supply chains have been disrupted as China’s strengthening military has made international waterways more dangerous for trade. American corporations have begun self- censoring messaging so as to not offend the Chinese Communist Party (CPP). And the US has outsourced far too much manufacturing and critical supply chains to China.

In 2019, the World Gold Council reported Central Bank purchases were 668.5 tons. That was the highest level of net purchases since 1971. Why gold? Why now? As global tensions heat up, Russian and Chinese Central Banks are shedding their US Treasuries and converting the proceeds into gold as a safe-haven. It is economically strategic in the event of sanctions from the US and the resulting isolation from the majority of global trade.

The number of aging persons relying on the social safety net, paired with the growing acceptance of entitlements, will almost inevitably result in higher taxes — meaning you will have less in your pocket each month. More money printing will likely be the response to compensate for these commitment shortfalls, resulting in the further devaluation of the dollar. Gold is a great inflation fighter and worth considering for wealth preservation.

Gold is the oldest currency known to man. Going back to Biblical times, it has always been globally accepted and recognized. It operates beyond all borders and apart from institutions and governments alike, thus making it one of the most recognized stores of value known to man for centuries.