As we enter the final weeks of 2023, the nation’s economic outlook remains uncertain.
America is still grappling with severe financial challenges, including but not limited to:
Surging living costs, a mortgage affordability crisis, a potentially unstable banking sector, significant workforce reductions in some of America’s biggest companies, persistent inflation, and sky-high interest rates.
As you may already know, the Fed hiked interest rates four times from 4.5% to 5.5% — the highest rate in 22 years. As a result, inflation has slowed down a bit to 3.2%. But prices for everyday goods and services are still heading higher.
And Fox Business says the combination of rate hikes and rising costs has created a “dire situation for American families”:
“Increasingly more people are eating into their savings and going into debt to cover basic living expenses, like food, utilities and housing.”
Recent data from Fidelity shows many Americans are even making “hardship withdrawals” from their 401(k)s to avoid foreclosure or eviction.
The New York Times says mortgage rates rising above 7% is moving homeownership far out of reach for many Americans. And Yahoo Finance reports, “Home prices have become so prohibitive in the U.S. that even rich, young Americans are ditching the dream of homeownership.”
Unfortunately, the rental market is also under pressure, and, according to The Wall Street Journal, the average renter spends a whopping 30% of their income to keep a roof over their head.
Trouble may also be brewing in the banking sector.
Across the country, banks are closing hundreds of local branches and leaving millions of people without access to financial services.
S&P Global Intelligence data shows six major banks have shuttered almost 40 branches in the last week alone, including 13 more Wells Fargo locations on top of the bank’s 160 closures in the first half of the year.
The corporate world is also reeling, with hundreds of thousands of layoffs.
Citigroup is letting 300 senior management employees go…
Chip maker Qualcomm is eliminating 1,258 jobs…
Geico is showing 2,000 employees the door…
Amazon, CNBC, Delta Airlines, Shell, Google, Meta, Ford, General Motors…
The list of shrinking giants goes on and on.
Meanwhile, as America’s vital businesses restructure their operations to cut costs and preserve capital, the White House and Congress continue to spend unbelievable sums… pushing the national debt over $33 trillion.
If the Administration keeps spending like this, Fox Business says, “the results could be catastrophic.”
It’s hard to believe we’re experiencing so many economic challenges. And it’s easy to feel anxious about what may happen when the news broadcasts doom and gloom.
But despite all the dark prognostications…
Gold’s future shines bright.
Because historically, gold has weathered many financial storms and tends to respond favorably when the economy slips.
In 1971, the value of gold was around $40. Inflation soared, and so did gold. After the 2008 financial crisis, gold soared again. The economy crashed in 2020, and gold jumped to new highs.
Today, buoyed by all this economic uncertainty, gold is hovering around $2,000 an ounce, and experts say gold’s price may rise to record levels in 2024.
Analysts from Capital Economics think gold could rise to $2,100 per ounce.
Philip Petursson of IG Wealth Management forecasts a climb up to $2,400.
And former CIA analyst and White House financial advisor Jim Rickards believes even $10,000 “isn’t pie in the sky.”
Bottom line:
The current economic environment is unfavorable for many Americans to say the least. And few analysts expect we’ll see a rapid economic recovery.
This is why it’s important to remember gold’s historic performance and plan accordingly.
Consider acquiring more gold if you can, while you can. And let’s give thanks for gold’s remarkable ability to offer wealth protection when we need it most.
Or call 888-529-0399 to schedule a free consultation with an experienced Gold Specialist. There’s no obligation.
November 15, 2023