In a new report, Lear Capital shares insights on risks posed by digital currencies, de-dollarization, and soaring American debt.
LOS ANGELES, May 15, 2024 /PRNewswire/ — Lear Capital, a leader in the precious metals industry, today released a report highlighting several emerging threats to the U.S. dollar and advising investors to consider diversifying into gold to protect their wealth.
The report, “Digital Dollars, De-Dollarization, and Debt — How Gold Might Be Your Best Defense,” outlines how the rise of central bank digital currencies, global de-dollarization trends, and mounting U.S. debt present serious risks to the future purchasing power of the dollar.
“As much as your car runs on gas, global markets run on dollars,” wrote Rachel Mills, Lear Capital’s global financial research specialist and author of the report. “But today, not all cars run on gas. And global markets are beginning to diversify away from their reliance on the dollar, too. Why does this matter and how could it unleash an avalanche of inflation on our economy? How might our government respond?
“Gold has historically served as a reliable hedge against inflation, preserving the purchasing power of savings in times of economic turmoil. Unlike fiat currencies, which are susceptible to manipulation by central banks, gold has maintained its intrinsic value over time.”
The report explains how over 130 central banks, including the U.S. Federal Reserve, are exploring issuing central bank digital currencies. While presented as a way to make payments more efficient, Central Bank Digital Currencies — or digital dollars — also pose major privacy concerns by giving governments the ability to track and control citizens’ spending.
On the global stage, U.S. sanctions against Russia are accelerating efforts by China, Russia, and other nations to conduct international trade without using dollars. This de-dollarization trend threatens to reduce demand for dollars and unleash inflation at home as those dollars flow back to the U.S.
At the same time, U.S. government debt has soared past $34 trillion, with annual interest payments approaching $1 trillion. History shows that gold prices are highly correlated with debt levels, suggesting that gold will rise as debt inevitably grows.
“Consider the benefits of diversifying into precious metals, which historically have retained their purchasing power over time, even as dollars get inflated away,” Mills wrote. “Did you know it is possible to hold gold and silver in a tax-advantaged IRA account? Lear specializes in gold IRAs and we would be delighted to answer any questions about opening one of these accounts.”
Lear Capital’s report concludes that investors would be wise to consider following central banks’ lead and allocating a portion of their savings to physical gold, which can be purchased directly or held in a self-directed precious metals IRA. Over the past two decades, gold has appreciated 540%, far outpacing the growth in median incomes and consumer prices.
To read the full report and learn more about how Lear Capital can help investors purchase physical precious metals, visit learcapital.com or call 800-965-0580.
About Lear Capital
Founded in 1997 by precious metal expert and analyst Kevin DeMeritt, Lear Capital offers investors the chance to diversify their portfolios with unique approaches to purchasing precious metals, including gold and silver individual retirement accounts. Employing a team dedicated to providing investors with real-time information and pricing on gold, silver, platinum, and palladium, Lear Capital is uniquely positioned to offer investors the convenience of online capabilities with the expertise and support of a brick-and-mortar institution. To date, the team has handled more than $3 billion in trusted transactions.
SOURCE Lear Capital
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