Forty four years ago Richard Nixon gave gold and silver investors a gift which keeps on giving.
If you have kept your eyes fixed on the recent rallies of gold and silver the connection will become quite clear. The month of August silver reached a historic low and since the silver has raced up 12.6% far outpacing gold according to a report on King World News. To be fair to gold it too has risen in value by 6.5%. What’s more is analysts are now predicting even more room for gold and silver to grow in value.
Now the question you might be asking is…
On August 15, 1971 the United States and the rest of the world were sold a bad bill of goods. Richard Nixon from the Oval Office in the White House delivered a stirring announcement stating that the U.S. would no longer have its money pegged to the Bretton Woods System. In plain English…the country would no longer use a gold standard for its paper currency.
Where the shock part comes into the equation with Nixon’s decision had far reaching effects even the master politician could not predict. First, according to an article written by Charles Kadlec in Forbes the dollar has lost 70% of its value since 1971. Americans used to have tremendous buying power abroad…now when the dollar is measured against the Japanese Yen and the Euro it’s weaker than a newborn kitten.
Even worse is how Nixon Shock affected the U.S. trade deficit. Before 1971 the United States enjoyed a small trade surplus but now the country is in roughly a $405 billion hole versus other countries. When trade deficits with countries like China begin to balloon up the American consumer now struggles to save for retirement and pay for education.
Yet, when you look at the gold standard and precious metals like silver they have stood the test of time when it comes to appreciating in value. In fact, prices of precious metals with particular attention being paid to gold and silver have made dramatic gains since Nixon’s decision in 1971.
Now here comes the tantalizing part for investors of gold and silver…
Here’s where Nixon Shock and precious metal prices work against each other.
The more trade deficits balloon out with countries like China the more instability it creates in the market. As you can probably imagine investors value stability which you aren’t seeing right now. In fact, there’s more instability than even in Nixon’s time. Since removing the gold standard there have been no less than 12 financial crises and another looming with the Student Loan Bubble.
As the dollar gains in strength it makes the United States less attractive to do business with for foreign countries. Now the consumer must carry burden of propping up the economy rather than good old fashioned trade.
All the indicators point to yet another surge in the value of gold and silver. Value which an savvy and aggressive investor could take advantage of at this precise historic moment. If you are even the least bit curious about how you could take advantage of the current surge in gold and silver prices there’s one simple step you should take now.
There’s a toll free number at the bottom of this article where you can get more information about gold and silver. You will not be hard sold any gold, silver or other investment vehicles, but rather you can speak with one of our Precious Metals Advisers and discuss what’s possible for your portfolio. If you’re reading this at a late hour then you can simply call the same toll free number and leave a message which we will return the next business day.
Now get your phone ready because here’s the number to dial: 1-800-510-9594 and call now to see if you can take advantage of this historic precious metal surge!