Credit Bubbles and Debt Troubles: The Case for Gold in 2024

Watch the replay: David McAlvany, CEO of Vaulted, discusses the 2024 economic outlook and strategies for investors.

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The Paradox of 2023

2023 was a tumultuous year. Five major bank failures rocked the system as the Federal Reserve continued cranking up interest rates, putting pressure on consumers, businesses, and the financial system.

As the smoke cleared from COVID, the US government came face-to-face with its unsustainable spending and growing debt problems. Predictions of a recession loomed large.

However, the disaster failed to materialize. If you take the year-end stock performance as a sign of the health of the economy, then everything looks amazingly optimistic. The World Bank now says the global economy could achieve a soft landing.

Are we out of the woods, or did we delay the inevitable?

The gold market tells a deeper story about the paradox of 2023.

Markets Rally as the Money Flows

Federal Reserve Chair Powell halted interest rate hikes in August, giving markets the end-of-year boost investors desperately wanted.

The Dow Jones Industrial Average broke through its all-time high on December 28th, and the NASDAQ Composite rose 43% in 2023. All losses from 2022 were erased.

Investors have reason to be optimistic (at least in the short run). History shows that the incumbent party in a presidential election year will do everything possible to support the stock market and economy, even at the expense of long-term stability. This fiscal stimulus, combined with the monetary boost from potential interest rate cuts, means the money will be flowing freely.

Gold Tells the Truth

Gold is inversely correlated with the US dollar and other “paper” assets. When gold rises, it signals deteriorating financial, economic, and geopolitical conditions.

No wonder gold finished the year with a 12.9% gain. Over the last four years, gold has tested the $2,080 level three times before finally breaking through its previous all-time high one month ago.

If the monetary and fiscal spigots do open up in 2024, $2,080 could become a distant memory. Gold’s next surge will indicate a collapse in the value of paper assets. No one knows precisely when the breakout will occur, but history says it will be lightning-fast and extreme, and it will be the only thing keeping the money-printing wizards in Washington honest.

Credit Bubbles & Debt Troubles

The US government currently spends 15% of total tax revenues to cover interest payments on its debt. As long as taxes fail to cover government spending, the US must cover its expenditures by selling bonds.

As foreign governments reduce their reliance on the dollar, the US government will have fewer buyers for its debt. It will be forced to sell bonds with higher interest rates to attract buyers, which increases interest payments and worsens the deficit.

If you are curious about how these issues will impact the markets, inflation, and finances, get the replay below.

Get The Replay of Credit Bubbles & Debt Troubles

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This webinar, led by David McAlvany, CEO of Vaulted, explores the economic landscape ahead and outlines actionable strategies for investors. You will:

  • Learn about the macroeconomic factors impacting gold and silver prices
  • Discover strategies for combating inflation and how to prepare for interest rate movements
  • Participate in a live Q&A session to get expert answers
  • Find out why 2024 is a crucial time for allocating to gold and silver

This replay is free of charge, but you must register for access.

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