News and commentary programs are being inundated by ads with dire warnings of the imminent collapse of the U.S. economy and the dollar.
Q1 2023 hedge fund letters, conferences and more
- “Are you worried about the value of the dollar? Protect your wealth and safeguard your financial future. Invest in gold!”
- “Don’t gamble with your finances – choose the proven safeguard of gold.”
- “The fate of the US dollar is uncertain. With ballooning debt levels and a struggling economy, experts warn that a collapse could be imminent. Protect yourself by investing in gold, the ultimate hedge against economic instability.”
The ads must be hitting home. I’ve had several inquiries wondering if selling out of a diversified portfolio and going to gold would be a good idea.
The short answer might be “yes” – If the U.S. economy were going to collapse. If the value of businesses and real estate should plummet, then going to gold is a great move.
The real question, though, is, “What is the actual probability of the economy collapsing?”.
“The last few years have tempted investors to take part in a modern gold rush. The precious metal is thought of as a safe harbor for investment capital during times of economic and political unrest and chaos.” I wrote that in 2012. I write something similar every few years when the “invest in gold or face financial disaster” ads proliferate.
Clearly, the primary selling strategy isn’t logic or facts. The purveyors of investing in gold are selling fear, trying to create a sense of panic and anxiety that can only be solved by buying gold. The only financial security they’re concerned about is their own, so they motivate you to buy gold with manipulation, exaggeration, or outright lies.
Read the full article here by Rick Kahler, Advisor Perspectives.
