A Recession is Coming: Prepare With Gold
According to an article by CNBC, 81% of U.S. adults are worried about a recession hitting this year. After the 2020 Coronavirus pandemic led the world’s economy to a screeching halt, the unrest that followed, and other geopolitical issues happening around the world, it is no surprise that so many people are bracing for the worst to come. Keep reading to learn more about why so many people believe a recession is coming, what the experts are saying, and how to prepare for a recession with gold.
Is A Recession Coming?
According to Investopedia, a recession is a macroeconomic term that refers to a significant decline in general economic activity in a designated region. It had been typically recognized as two consecutive quarters of economic decline, as reflected by GDP in conjunction with monthly indicators such as a rise in unemployment. However, the National Bureau of Economic Research (NBER), which officially declares recessions, says the two consecutive quarters of decline in real GDP are not how it is defined anymore. The NBER defines a recession as a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.
Three things are contributing to the impending recession, according to Fortune. They are the rising inflation rate, war, and slowing growth. Fortune continues:
Deutsche Bank economists now see a recession coming by the end of 2023 as inflation becomes more broad-based.
“Two shocks in recent months, the war in Ukraine and the buildup of momentum in elevated U.S. and European inflation have caused us to revise down our forecast for global growth significantly,” a Deutsche Bank team led by economist David Folkerts-Landau wrote on Tuesday. “We are now projecting a recession in the U.S.…within the next two years.”
The economists noted that the war in Ukraine has disrupted global supply chains and dramatically increased commodity prices and energy costs in the U.S. and EU.
CIBC’s Pzegeo said that inflation can often lead to wealth destruction as well, especially when rising consumer prices outpace wage growth.
“It acts as a tax. So give it a little bit of time in the economy, and it’ll eat away at your wealth and set the stage for a recession,” he said.
Recent GDP forecasts from the Conference Board have also led to fears that a recession could be on the horizon. U.S. real GDP growth is now expected to slow to an annual rate of just 1.7% in the first quarter of 2022, compared with 7% annual growth seen in the fourth quarter of 2020.
How to Prepare for a Recession with Gold
One of the best ways to get ready for a recession is to prepare for a recession with gold. Gold prices skyrocket during a recession while the value of the dollar declines. Couple this with rising inflation rates, and you’re sure to have record-high gold prices coming along with the recession. As such, it is a great idea to prepare for a recession with gold now before the prices get too high.
- Collect gold coins
- Purchase gold bullion and gold bars
- Purchase gold mining stocks
- Rollover your IRA into a Precious Metals IRA
Other Ways to Prepare for a Recession
It is always ideal to make sure you prepare for a recession with gold with some other backups as well. These include:
- Create your financial plan and budget now before money gets too tight. Beginning your budgeting now will help you save, as well as help you get used to a new way of life before it hits.
- Seek other streams of income, just in case. You never know what might happen in a recession. Start taking on more clients, line up side gigs, and sharpen up other skills in case your job hangs in the balance.
- Add as much as you can into your savings. Save, save, save as much as you can now. Gold will protect your savings from inflation.
- Begin storing food and water. Remember what happened to grocery stores and the supply chain in 2020? This could very much be a reality again if a recession strikes.
- Delay major purchases for now. Accumulating new debt right before a recession isn’t the best strategy, as there is a higher chance you could lose your job and not be able to pay it off.
About Priority Gold
If you are ready to invest in gold to protect your savings and secure your future, we can help. Priority Gold is one of the most trusted precious metals dealers in the United States with BBB A+ Rating, AAA Rating with Business Consumer Alliance, and 5 Stars Rating with TrustLink.
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