The GoldSilver Team
SEP 1, 2023
Over 40 countries applied to join the BRICS Alliance, but only a select few made the cut. Find out who's in and who's out.
Plus, discover why September 1st might be the best day of the year to invest in gold...
Central Banks Continue To Buy Gold Aggressively — In 2022, central banks made their largest net purchases of gold in 55 years, a trend that shows no signs of slowing. During the first two months of 2023 alone, central banks acquired over 228 tons of gold, putting them on track for an annualized rate of 1,400 tons.
Grassroots Gold Support In West Virginia — U.S. Rep. Alex Mooney from West Virginia has proposed a new bill called the Gold Standard Restoration Act (H.R. 2435), and if passed — it would pin the value of the dollar to a specific weight in gold. Not only that, but the bill would also make it so you could swap out your paper currency for actual gold.
U.S. Government Debt Projected To Surge By $5 Billion Daily Through 2033 — The U.S. government's debt is on track to increase by an alarming $5.2 billion daily over the next decade. Notably, this rate of debt accumulation is poised to outpace the growth of the broader economy. If this trend continues, the nation's debt could exceed a staggering $50 trillion by 2033.
Florida And Indiana Pass Laws Banning CBDCs — Florida and Indiana just passed some new laws that basically say a Central Bank Digital Currency (CBDC) doesn't count as real money in their states. Yep, they've officially nixed the idea of using CBDCs as a form of cash. And it's possible other states might just hop on the bandwagon and do the same.
Retail Sector Takes A Hit As Economic Woes Deepen — In a telling sign of economic turbulence, numerous retailers are reporting double-digit declines due to a mix of weak earnings and lackluster future projections. As a result, the XRT Retail ETF has suffered significant losses, underperforming the broader market every single day this past week.
Medicare, Medicaid, And Social Security: Is Bankruptcy Inevitable?
There’s been a lot of talk about the future of big government programs like Medicare, Medicaid, and Social Security... And for good reason, they're all on shaky ground.
Medicare: This healthcare behemoth eats up half of every federal budget dollar. That's a mind-blowing $2.7 trillion this year! And guess what? Its account balance is predicted to hit zero by 2031.
Medicaid: This is one of the largest health coverage sources in the U.S., but its costs are skyrocketing. We're talking from $117 billion in 2000 to a projected $879 billion by 2033.
Social Security: This is the granddaddy of them all – and its piggy bank is also running dry. By 2033, it'll only be able to pay out 77% of what it promises. Imagine a 23% cut in your monthly check.
The problem with programs like Social Security, Medicaid, and Medicare is that we're all living longer and having fewer kids. That means fewer people are paying into these programs, making them unsustainable long-term.
So, what's being done? There's talk about reforms, like letting younger folks opt out or redirecting their future tax payments into personal retirement accounts. But let's be real, there's no quick fix.
These programs won't go belly-up overnight, but they're on a slow burn towards bankruptcy. And when they do, it's everyday folks like us who'll feel the pinch.
So, what can you do? Stay informed, plan ahead, and consider diversifying your investment strategy. Your financial future is too important to leave to chance. Take steps today to ensure you’re prepared for whatever comes next.
Major Developments Emerge From The BRICS Summit In Johannesburg
In a continuation of our coverage of the BRICS alliance, we bring you updates from their recent three-day summit held in Johannesburg, which commenced last week.
For the first time since its inception in 2010, the BRICS alliance is expanding. Saudi Arabia, Argentina, Egypt, Ethiopia, Iran, and the United Arab Emirates have been officially inducted into the alliance. This development confirms the swirling rumors that have captivated geopolitical analysts for weeks.
Why This Matters
Chinese President Xi Jinping characterized the expansion as "historic," as the new additions are set to considerably bolster the alliance's global standing. Collectively, the expanded BRICS will now account for an even greater share of the world's GDP and nearly half of its population.
According to World Bank data, the original BRICS nations — Brazil, Russia, India, China, and South Africa — accounted for 42% of the global population, 26% of global GDP, and 18% of global trade. With the inclusion of six new members, these figures are expected to rise to 46% of the global population, 29% of global GDP, and 25% of global trade.
The Question Of A BRICS Common Currency
While there was discussion about the potential creation of a common currency backed by gold to rival the U.S. dollar, there was no consensus on the issue. The BRICS nations appear divided on the matter, suggesting that any such development may be delayed.
Jim O'Neill, the former Goldman Sachs economist who coined the term "BRICS," expressed skepticism in a recent interview with the Financial Times.
"It's just ridiculous," O'Neill said. "They're going to create a BRICS central bank? How would you do that? It's embarrassing almost."
Even without the development of a common currency, the alliance is entering an unprecedented phase of growth and influence. As we continue to monitor these developments, the implications for global geopolitics are sure to be far-reaching.
Stay with us for more in-depth analysis and updates on this evolving story.
According to Dow Jones data, September has historically been a rough month for stocks. The Dow drops by an average of 1.08%, the S&P 500 by 1.12%, and the Nasdaq by 0.85%. These trends date back to 1896 for the Dow, 1928 for the S&P 500, and 1971 for the Nasdaq.
But it’s a different story for gold...
Since December 31, 1974 — the date when owning gold became legal for U.S. citizens — gold bullion has averaged a 1.8% gain in September. This is more than four times its average return of 0.4% across the other 11 months of the year.
Since 1975 the data shows that gold's performance is generally weaker in the first half of the year, making the latter half an opportune time to invest. Specifically, the third quarter (July through September) emerges as gold's strongest period.
Ideally, you'd want to be fully positioned by the end of August to capitalize on this seasonal bump. However, the overarching strategy focuses less on timing the market and more on the volume of gold in your portfolio.
The Power Of Dollar-Cost Averaging
This is why many experts recommend dollar-cost averaging as a method to consistently build your gold portfolio over time. Dollar-cost averaging offers several advantages, particularly for those without a large reserve of liquid cash.
This strategy enables investors to mitigate market volatility by spreading their investments over time. In down markets, you'll average in at more favorable prices, effectively turning market downturns into investment opportunities.
Our InstaVault program makes it easier than ever to leverage the benefits of dollar-cost averaging. With InstaVault, you can buy gold in increments as small as 1/100th of a troy ounce – which goes for about $20 right now – allowing you to build your portfolio at your own pace.
For more information about how you can dollar-cost average into real gold at bulk bullion pricing, check out InstaVault right here.
Catch you next week!