The much anticipated (and to some, much dreaded) rematch between Joe Biden and Donald Trump is now official. Last week, both candidates locked up enough delegates to secure their respective parties’ nominations for President.
There are stark differences between them, no doubt. But the election is unlikely to change anything about the trajectory of federal finances.
Those who are concerned about rising deficits, a depreciating Federal Reserve note dollar, entrenched inflation, and the potential for black swan events such as a banking system meltdown, war, or natural disasters often look to precious metals for protection.
People who own physical gold and silver as part of a financial preparedness strategy were ridiculed in a recent CNBC article as “doomsday preppers.”
An academic quoted in the article, apparently attempting to link gold buyers to supporters of Donald Trump, stated, “The turn toward gold is like the turn toward authoritarian leaders, toward the ideal of someone who knows what is true and right and who has the courage to return a nation to its former truth and greatness."
In reality, people buy gold primarily for the opposite reason: they fear authoritarian government controls and are skeptical that any political figure can be fully trusted to do “what is true and right.”
Gold is honest money.
The fact that it recently surged to a new record high in terms of Federal Reserve notes reflects the dishonesty of the fiat currency regime.
Sound money advocates don’t expect Donald Trump, if elected President again, to single-handedly fix what’s broken with the nation’s fiscal and monetary policy.
They instead expect more debt, more inflation, and an eventual reckoning that could be painful for lots of people who are unprepared.
Being prepared is not a dug-in ideological position, as some gold naysayers in the media suggest. Economic risks including that of a currency crisis can jeopardize your personal financial security regardless of whether you are a Republican, Democrat, or Independent.
Of course, those who blindly put their trust in Washington, D.C. to solve the nation’s financial problems will probably see no need to prepare for hard times.
For those who are a bit more skeptical of the powers that be, physical gold and silver represent tangible wealth that requires no trust and has no counterparty risk.
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