Can You Avoid a Recession?
You’ve surely heard the rumors that a recession is looming and may even be feeling the consequences. Money is getting tight, grocery prices are starting to go up, and interest rates are rising. What can you do now to soften the blow? Keep reading to learn more about avoiding a recession and how investing in gold now plays a part.
What Is a Recession?
According to Investopedia, a recession is a significant, widespread, and prolonged downturn in economic activity. A common rule of thumb is that two consecutive quarters of negative gross domestic product (GDP) growth mean recession, although more complex formulas are also used. Economists at the National Bureau of Economic Research (NBER) measure recessions by looking at nonfarm payrolls, industrial production, and retail sales, among other indicators, going far beyond the simpler (although not as accurate) two-quarters of negative GDP measure. However, the NBER also says there is “no fixed rule about what measures contribute information to the process or how they are weighted in our decisions.”
Key takeaways about recessions include:
- A recession is a significant, pervasive, and persistent decline in economic activity.
- Economists measure a recession’s length from the prior expansion’s peak to the downturn’s trough.
- Recessions may last as little as a few months, but the economy may not recover to its former peak for years.
- An inverted yield curve has predicted the last 10 recessions, although some predicted recessions never materialized.
- Unemployment often remains high well into an economic recovery, so the early stages of a rebound can feel like a continuing recession for many.
- Nations use fiscal and monetary policies to limit the risks of a recession.
Tips for Avoiding a Recession
- Get rid of high-interest debt. One of the things that happen in a recession is we tend to turn to our credit cards to help get by with the growing prices of groceries, gas, and more. However, another thing that happens in a recession is that the Feds hike up the interest rate. Letting your credit card balance grow too large can turn out to be quite costly. Focus on paying off your highest-interest credit card debt first so that you can save more money in the long run.
- Look at your spending. You may be spending more money on unnecessary things than you think. A Chase survey conducted in 2021 found that two-thirds of consumers have forgotten about at least one recurring payment within the last year, and more than 70% of consumers estimate wasting over $50 each month on recurring payments for things they no longer need. See where you can trim the fat and get rid of unnecessary payments – they add up quickly, and you could be saving potentially hundreds.
- Work on your emergency fund. It is important to focus on saving during a recession. You never know what might happen with your job, as companies tend to downsize during recessions. As such, work on bulking up your emergency fund should anything happen. This way, you won’t have to pull out any good investments or dip early into retirement funds.
Roll Over Your IRA to a Precious Metal IRA
By rolling over your IRA, 401(k), 403, TSP, or 457 Plan into our Precious Metal IRA Account, you can achieve the same profits that you would gain by purchasing gold or silver directly while also enjoying the benefits that your retirement account provides. We have a proven four-step process that makes it easy to open a precious metals IRA, and we guarantee you the highest caliber customer service. Our IRA specialists will answer all of your questions, work with your current custodians to ensure a seamless transition, provide you with a free metal evaluation, and continually help you to review your portfolio.
Here are additional benefits:
- Self-directed precious metals IRAs allow you to invest in gold and silver so you can better diversify your investment portfolio, which can be crucial protection during turbulent financial markets.
- Gold and silver also allow their owners to acquire currency anywhere in the world, making these metals versatile regardless of location.
- Diversification is necessary to achieve an investment portfolio that balances risk and return. Precious metals serve this goal perfectly because when other forms of investments fail, precious metals tend to remain even or rise in value.
- Precious metals not only provided protection against inflation but also tended to move higher during stock market crashes, geopolitical risk, and economic uncertainty.
Avoid a Recession with 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 a BBB A+ Rating, AAA Rating with Business Consumer Alliance, and 5 Stars Rating with TrustLink.
We specialize in providing precious metals investment services with Security, Liability, and Great Convenience for customers. Our team is committed to helping to streamline their precious metals purchases at a fair price, selecting the right precious metals portfolios, and meeting their important financial objectives.
We offer Free Storage for qualifying Gold & Silver IRA accounts, a fast & easy gold buying process, and smooth IRA Transfer. And gold shows up on schedule. Priority Gold guarantees the highest customer service standards, which come with honesty, professional conduct, and an Ethical Code of Business.
For more information, visit us at prioritygold.com