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Markets at the Fed’s mercy (but here’s why you don’t have to be)

Markets at the Fed’s mercy (but here’s why you don’t have to be)

It’s a simple and noble goal, one that we hear from our clients every day: You want to protect your savings, to ensure that you’ll be able to maintain your lifestyle (not just now, but throughout retirement) and maybe even pass some wealth on to your loved ones. Everyone should have that right.

But the way the markets have gone in recent years, especially in the last few weeks, we’re hearing from more and more people that they feel as though they’re losing control over their financial destiny. The latest example? The Federal Reserve merely suggested the other week that it may taper its stimulus program of Quantitative Easing, and it sent the stock market into a free fall. Unfortunately, this isn’t the first time Ben Bernanke has influenced the market. Month after month, year after year, Bernanke can so much as just look at someone the wrong way and the markets have swung wildly.

Do you really want your savings to be at the mercy of Ben Bernanke?

Fortunately, there is a way to free your savings from this mess… and it’s to beat the Fed at its own game: Become your own Central Bank.

Whatever your savings are in, back them with physical gold and silver. Central Banks across the world already do it, and they continue to take possession of more, and more, and more (the Federal Reserve included). Consider that Central Banks have bought more gold than they’ve sold for nine consecutive quarters now. And in just the last week, several Eastern European banks purchased 580 tons of gold – that’s a massive 25% of the world’s annual gold mine production!

In a piece titled “Why I Own Gold”, Axel Merk of Merk Investments recently put it best:

“We don’t think investors should rely on their government to preserve their purchasing power. Indeed, a government in debt does not have its interests aligned with those of investors. As such, an investor interested in a gold-backed currency should create their personal gold standard should they desire one.”

You don’t have to believe that gold and silver are the sole answer; other investment options can be perfectly suitable as part of your portfolio. But we do firmly believe that for any savings portfolio to be sensible, you should do as the Central Banks do and back your assets with gold and silver.

Gold and silver may be down the last few weeks… but no matter how low they may go in the short term, physical precious metals will always hold value. You can’t say that about stocks. You can’t say that about the dollar. So do the sensible thing and back your assets with physical gold and silver. If your stocks ever go to zero, if the dollar ever goes to zero, you’ll be glad you did.