At Birch Gold Group, we spend a lot of time writing about – and educating our readers on – the numerous advantages of gold-backed IRAs. As the Precious Metal IRA Specialists, we’ve seen first-hand how gold can benefit people’s retirement portfolios. While the dollar’s value continues to erode, and the stock market dips at the slightest news of economic slowdown around the globe, more people are realizing the importance of diversifying their retirement portfolios with gold.
But you don’t have to just take our word for it.
Many of the world’s most prominent investors, economists and political figures have been touting the benefits of gold for years. And with so much uncertainty surrounding the economic recovery, the Fed’s big “taper,” and other factors affecting Americans’ wealth today, gold is still making the headlines daily.
From our own exclusive interviews with influential figures to the analysts’ predictions in the news, it seems everyone is talking about gold these days. Below, you’ll see exactly what two such experts are saying and why everyone needs to be taking their advice seriously.
Why gold? Just listen to the experts
Recently, we talked with former U.S. congressman and presidential candidate Ron Paul. In our exclusive interview, Ron Paul expressed serious concern about the outcome of “unworkable” monetary policies in the U.S., most notably its Quantitative Easing and the taper of its debt purchasing, which has since begun. Here are some key things he had to say during our interview.
On U.S. monetary policy:
“It’s a system that is very friable and unworkable, and since [the Fed] will not work out of it – since they will not work out of it gracefully and deliberately, you know, we will probably go on to having a major crash of the dollar – that’s what I see happening.”
On the effects of Quantitative Easing, as history has shown:
“The politicians and Congresses, and Central Banks can manipulate things for a while, but eventually if they are out of sync with the market, the market will overwhelm.”
On buying gold:
“Some people might say, ‘Oh well no, it’s too expensive, because it used to be $1,000 or $500 and I’ll wait for that.’ No, I think this is a good time [to buy gold]… I look at gold as insurance, and others might be just at a time where they can start buying their insurance against the dollar fiasco, and I would say this is as good time as any.”
On whether it’s “too late” to invest in gold:
“Certainly if [people] thought it was too late that means that they must trust the government to balance the budget, and trust the Fed not to print any more money and that you’ll never see prices going up.”
On whether gold is “too expensive:”
“Instead of people arguing that it’s ‘too expensive,’ I would think people who are in it for the long term, it looks to me like this would be a very good time to buy.”
On Fed Chairman Janet Yellen’s ability to solve our problems:
“She’ll make them worse. She’s inherited a mess, although she was a participant in the mess and she always argued for more inflation … The odds of her having the guts or the wisdom to start backing off the purchase of debt, it’s slim to none. So that will certainly continue and it’s still working on the surface. But the longer it lasts, the worse the correction will be when eventually people give up on our dollar and give up on our debt.”
We also had the honor recently to speak with Jim Rogers, the legendary investor, author and financial commentator. Rogers’ sentiments were very similar to Ron Paul’s as he says we’re headed toward a “serious collapse” of the global markets and that everyone should invest in precious metals now as an insurance policy. Here’s what he had to say.
On knowing how to read the markets and whether or not to put trust in monetary policies like Quantitative Easing:
“I have learned over the years, always, when nearly everybody is thinking the same way, that means somebody’s not thinking – that means we got to start thinking about it and see if there’s not another way, another approach. Because if everybody says ‘the sky is blue,’ I at least urge you to go and look out the window and see if it’s blue, because I have found that most people won’t even bother to look out the window … Most people say, ‘Well, everybody knows the sky is blue and that’s all we need to know.’ No, it’s not all you need to know, because another thing I have learned in my life is that no matter what we all know today, it’s not going to be true in 10 or 15 years.”
On the currency wars and government policies that are causing currencies around the world to decline:
“We’re all losing in currency wars. How long can it go on? Well, it can go on as long as politicians can continue to print money. The problem is, of course, eventually the markets will just say, ‘We’re not going to play this game anymore,’ and we’ll have a serious collapse. You and I can print money all day long, but at some point, you, I and everybody else is going to say, “Wait a minute, guys, this money is getting worse and worse and more and more worthless, so why don’t we stop playing this game?’ I wish the politicians were smart enough at some point to say, ‘We’ve got to stop this, this is going to be bad.’ But unfortunately they never have, and probably never will.”
On tapering the debt purchasing and printing of money:
“[Fed Chair Janet Yellen] knows – I hope she’s smart enough to know – that if she stops, oh my gosh, it’s going to collapse. So she’s not going to stop. Nobody wants to go down as causing the collapse of the world. So I’m afraid this is going to go on until the market eventually says to them, ‘Okay, enough is enough,’ we have a big collapse and then they’re all thrown out and we can start over.”
On the possible outcome of a slow taper, like the Fed is currently attempting:
“The Federal Reserve will say, ‘Hey, this is not so bad, we can do it.’ And they’ll cut some more. [The market] will drop again and then rally, because it will take a while for people to really believe how bad it can get, or will get. And so eventually they will try to cut [Quantitative Easing] and it will finally cause the collapse, at that point we will have a big change, because they will throw them out, whether it’s the politicians or the central bankers or whoever.'”
On buying gold:
“I’ve owned gold for many years, I’ve never sold any gold and I can’t imagine I ever will sell gold in my life because it is somewhat of an insurance policy … Everybody should own some precious metals as an insurance policy. So if they don’t have any right now, I would urge them to go buy something.”
On doing your own research to see why now is the time to buy:
“If they do their homework, most people will then realize, ‘Oh my gosh, I better have insurance, and gold and silver may get me through serious problems ahead.”
Even more talk of gold in the media
Beyond our own exclusive interviews, a wide range of experts are talking about gold across numerous media outlets. Here are just a few prominent quotes from these influential figures and blogs.
“Gold has a long and impressive record of warning of trouble ahead in the global economy. It has usually been right in the past – and its telling us right now that the outlook is much less secure than then market assumes. You ignore it at your peril.”
“The main reason why the gold price is rising is very basic, very simple – it’s Central Bank money printing, what they now call Quantitative Easing. As currencies are debased, the gold prices rises in terms of that nominal currency. But the interesting thing is that because gold is money, its purchasing power doesn’t change. So here’s gold at $1350, compare to where it was anytime over the past several decades, but it still buys basically the same amount of crude oil as it did over that any period of time.”
Myra P. Saefong
“Many big banks were forecasting average 2014 prices below $1,300 an ounce, down from last year’s average of $1,413. But the precious metal has already managed to outperform U.S. stocks, bonds, emerging markets and the dollar.”
Adrian Ash, Miguel Perez-Santalla
“Gold ownership yields security for the investor, the type of security a person seeks from insurance. It is the only physical form of insurance which both exists to counterweight your investments in bonds and stocks, and which is also a liquid, easily traded asset. Gold is also non-correlated with those more ‘mainstream’ markets. Meaning that its price moves independently of where other investment prices are heading. So the goal for most investors in holding gold is first as a safety net for their other assets. This metal has held value for thousands of years, and will hold value for thousands more.”
“Now that she’s the boss, Yellen might ban interest rates. As a believer in the musings of John Maynard Keynes, Chairwoman Yellen no doubt insists that people are too future-oriented (remember, in the long run we’re all dead), society doesn’t consume enough, saves too much, interest rates are too high, money printing will lower rates, and unused savings leads to unemployment… Gold is (and always has been) its own boss. The cost to create an ounce is somewhere around the going price — $1,366. This fact will keep too much from being mined.”
“The last big thing was a major shipment of gold from Switzerland — that had to be central bank gold, because where else was it coming from? That stuff was being re-refined in Switzerland and shipped on to China. This whole West-to-East transport of major quantities of gold, from a Westerner’s perspective, is not a good development. The old adage is that gold goes where the wealth is being created. And the other is that those that have the gold make the rules. So I’m really upset with this whole migration of gold from West to East… What’s happened is that we in the West, and America in particular, were paying for all these goods from China with more and more printed money. And China was running up huge surplus accounts as a result. So they had this enormous quantity of U.S. dollars in reserve, and they know it’s pretty vulnerable. And I think that’s an underlying reason that they’ve been buying gold—and it’s not just gold, but properties and other stores of value. They really want out of these U.S. dollars and into hard assets to whatever extent they can do it.”
“These are constants in an ever-changing world, and I think they are cheap now — very cheap. I don’t think people own enough of it, and when they finally get that this is happening, there’s not going to be enough to go around. So my advice to people is to get all the gold and silver you can at these prices.”
“Gold’s annual performance in 2013 sank to the bottom of the table. But the plain lesson we take from this comparison table of investment returns over the last four decades is that gold really does act as portfolio insurance when investors most need it. Diversification counts.”
“Dollars are unbacked debt based Federal Reserve Notes that work well for daily commerce. However, they have no intrinsic value and, in terms of decades, been not been a good store of value. Gold and silver are excellent for savings and investing at the present time, have intrinsic value, and are a store of value over the long term.”
“Gold is bought and sold in U.S. dollars, so any decline in the value of the dollar causes the price of gold to rise. The U.S. dollar is the world’s reserve currency – the primary medium for international transactions, the principal store of value for savings, the currency in which the worth of commodities and equities are calculated, and the currency primarily held as reserves by the world’s central banks. However, now that it has been stripped of its gold backing, the dollar is nothing more than a fancy piece of paper.”
“Gold is not being bought here [China] in the physical market as an investment decision but rather as a policy decision. It is clearly understood that gold is for saving and not for speculation as the eventual failure of the paper gold market will prove. As we move out of the Great Leveling 2016 into the Great Reset of 2020 gold will have preserved the buying power of those courageous enough to hold and when possible add to their positions. Companies holding gold free of the tentacles of the West will prosper accordingly.”
Take the next step
You’ve heard what the experts are saying, but you’re probably curious how an IRA backed by physical gold could benefit your specific situation. If you’d like to learn more about investing in gold for retirement or for physical possession, take the first step by requesting a free Birch Gold investment kit. Or, call (800)355-2116 to speak to one of our knowledgeable associates who can answer your questions and guide you through the simple process of opening your gold-backed IRA.