“2022 has been one of the craziest years I can remember.”
– Sr. Precious Metals Advisor Steve Rand
Investors experienced an unprecedented year of economic instability, chaos, and uncertainty in 2022. Even as the year comes to a close, there’s been a crescendo of mishaps and scandals that paint a dismal picture for 2023.
Watch the video to hear what Scottsdale Bullion & Coin Sr. Advisor Steve Rand & Precious Metals Advisor Todd Graf say about the previous year, what the next will bring, and why investors shouldn’t wait to buy gold or silver.
2022 Craziness in Review
Democrats defied bipartisan expectations of a red wave last month by maintaining a majority in the Senate. Although Republicans will provide some resistance in the House, the Biden administration will enjoy less resistance than expected when it comes to continued spending which has fueled inflation and hammered buying power.
The ongoing Russia-Ukraine war has endured far longer than governments and intelligence agencies expected. Long-standing peace in Europe is over, global supply chains are strained, and energy prices have skyrocketed. Nobody knows exactly how long the war will last or how disastrous the implications.
On the home front, the most recent crypto scandal saw tens of billions of investor dollars evaporate virtually overnight. Sam Bankman-Fried’s FTX Exchange went from being paraded as the shining example of crypto success to yet another instance of corruption, scandal, and outright stealing in the crypto sphere. The little faith left in the space has eroded even further.
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Many countries are drowning in political unrest as citizens struggle to keep up with rising costs amid economic turmoil. For example, Brazil is grappling with attacks from Bolsonaro supporters after a hotly contested election loss, and Peru is managing political fallout after its president was ousted. The list goes on as countries reel from a year of economic burdens.
Japanese Bond Fallout
Just this week, Japanese bond markets tanked. An unexpected adjustment in the Bank of Japan’s yield curve jolted the country’s bond market and sent shockwaves across foreign markets. Gold jumped in response as currencies and fiat-backed assets dropped, foreshadowing possible trends in near the future.
2023: Relief or Recession?
If you thought 2022 was a bad economic year, you might want to see what 2023 has in store. All signs point to a strong potential for a recession next year. Government leaders, economists, and other reputable sources have been warning of an impending recession. This would bring higher interest rates, massive layoffs, and more obstacles.
Very few of the economic challenges of 2022 are going to be resolved quickly. The disastrous economic impact of a recession would only exacerbate our current challenges. Inflation, the driving force of many of these issues, has already notched a 40-year high and will most likely return next year with a vengeance.
Precious Metal Performance
Central banks, institutional players, and retail investors the world over have been flocking to precious metals throughout 2022. Trust in fiat-backed markets has fallen precipitously as investors crave financial protection, privacy, and autonomy. This shift in public sentiment and investing habits has led to a supply shortage, making it harder for gold and silver dealers to come up with some gold and silver coins and bullion bars. 2023 gold outlooks point to the upside in response to ongoing economic challenges.
Buy Gold & Wait, Don’t Wait to Buy Gold
Intelligent investors see the current economic panic as a prime opportunity to increase their precious metal investments. Gold has proven to be a reliable hedge against inflation for centuries, as well as silver, and it’s shaping up to be a great investment in 2023. Instead of waiting to time the market, it’s much better to invest now and wait for whatever challenges next year might bring.
The economic hurdles on the horizon are only going to drive gold spot prices up and supply down. Request a FREE COPY of our popular Gold and Silver Investment Guide to see how precious metals can help protect your financial stability no matter what the future brings.