Corona Virus Pandemic, Unemployment, Recession, Stock Market Volatility, and Civil Unrest are driving uncertainty. And everyone is feeling uneasy about their financial future during challenging economic times. Gold has been the most stable and long-standing circulating medium of exchange, purchasing power, profit potential, and store of wealth for centuries. Hold onto gold for financial security in a time of uncertainty.
On June 16, 2020, Federal Reserve Chairman Jerome Powell warned at the Senate Hearing that “U.S. Economy Faces Deep Downturn With Significant Uncertainty. Much of that economic uncertainty comes from uncertainty about the path of the disease and the effects of measures to contain it.” Until the public regains confidence, economic recovery from the pandemic is uncertain and the Fed does not expect a quick recovery. While there are signs that the US is bouncing back from the worst pandemic impact, there’s still a long way to go. “If not contained and reversed, the downturn could further widen the gap in economic well-being that the long expansion had made some progress in closing.”, Powell said.
The Corona Virus outbreak in early 2020 suddenly shut down many businesses. Subsequently, Gross Domestic Product (GDP) along with the US economy has shrunk 5% in the first quarter of 2020. So far, there are over 50 million confirmed cases and 1.2 million deaths globally and the rates are increasing daily. Currently, there is no vaccine to cure Coronavirus disease (COVID-19). Doctors are treating COVID-19 patients at their best guess. It may take years to develop a vaccine and it reaches the entire global population. Uncertainty in health and economic sectors would continue before a vaccine is found.
The sudden shutdowns of businesses had caused epic damage to the US job market. Eventually, many of these businesses begin to reopen slowly or partially. But for some business, shutdowns and job losses can be permanent and some laid-off workers may never come back. As of June 2020, Government reports showed the U.S. unemployment number climbed to 42 million. May unemployment rate of 14.7% is the highest since the Great Depression during the 1930s (25.6%). The grim picture of the job market is widespread uncertainty and economic analysts believe it could take years to recover.
POLITICAL & CIVIL UNREST
Nationwide Civil unrest and looting across the US could hurt markets and the US economic recovery. Because continued civil unrest could threaten consumer confidence and slow down the trajectory of the business reopening. As cities and states have embarked on some stage of reopening from the Corona pandemic shutdown, unrest will add a whole new level of uncertainty. The deterioration in consumer spending is susceptible to Downside Risks to U.S. GDP growth. If the GDP number continues to go down instead of going up for a period of at least six months, then recession is on the way, most experts agree.
Sources: Civil unrest & economy
VOLATILE STOCK MARKET
There is no guarantee that the stock market strength, rebound, and surge will last forever, especially when economic prospects don’t materialize, experts said. COVID-19 Pandemic shutdown the NYSE stock market’s trading floor on March 20, 2020, as while stock prices were plummeting. On March 16, 2020, the Dow Jones hit a new record Low with 12.93% Free-Fall, closing at 20,188.52. (Losing 2,997.10 points). The brewing trade tensions between the US and China and Covid-19 Pandemic could have become negative catalysts for volatile stock markets, heightening economic uncertainty, according to industry watchers.
STOCK MARKET PLUNGED DURING PANDEMIC
STOCK MARKET VOLATILITY
U.S. UNEMPLOYMENT HISTORICAL CHART
UNEMPLOYMENT AND U.S. ECONOMY
Labor Statistics Data
The Government official unemployment rate of 14.7% in early May 2020 could be higher than it looks due to worker categorization error. The Labor Department explained that millions of temporary-layoff workers (Furloughed workers) may have been misclassified as employed when they should have been categorized as unemployed. If those workers were properly categorized as unemployed, the jobless rate would have been 3 percentage points higher, according to the Bureau of Labor Statistics. More than 42 million Americans have filed for unemployment benefits.
At the end of May 2020, the government is easing lockdown restrictions, and businesses are reopening and rehiring furloughed workers. And there are some glimmers of hope suggesting the worst economic downturn might be over. On June 5, 202, The Bureau of Labor Statistics announced that US employers added 2.5 million jobs in May, the largest monthly gain since 1939. It is surprisingly good news that defied economists’ worst expectations. The US unemployment rate declined to 13.3% in late May.
But Some industries may struggle to bounce back even as economies reopen. Some may never recover from the Coronavirus crisis. How likely employers rehire more workers will depend on how reopening goes. The economic recovery also depends on how much the spread of the Coronavirus is contained and when a vaccine is developed.
US Economy in Recession
On June 8, 2020, NBER, The National Bureau of Economic Research declared that The United States is in a recession that began in February, ending the longest period of uninterrupted growth in US history dating back to 1854. On the same day, a chief economist of investment and financial firm says “Despite the strong job market rebound in May, there are more uncertainties in the United States. One reason is that the U.S. is now a clear under-performer in virus control than other countries”.
Darkened Economic Outlook
On June 25, 2020 – the Federal Reserve Bank of St. Louis published an alarming forecast of 32% U.S. unemployment in the second quarter as 47 million workers laid off and the Coronavirus continues to spread. That would be the highest jobless rate on records dating back to the 1930s Great Depression era. The stock market fell sharply on the same day as the worst day of the month for the Dow, S&P 500, and Nasdaq.
GROSS DOMESTIC PRODUCT
US GDP HISTORICAL RECORD CHART
US GDP DECLINES IN 2020
Gross Domestic Product (GDP) in the United State declined 5 percent in the first quarter of 2020 due to the massive job loss and business shutdown caused by the pandemic. The figure indicates that G.D.P. contracted at an approximate annual rate of 30 percent, or more, a scale not seen since the Great Depression. A chief economist for the credit insurance company in North America said “They’re going to be the worst in our lifetime in the post-World War II era.” Uncertainty grows as questions arise about how much economic damage the country will get and how long it will take to recover. GDP, the measurement factor of Gross Domestic Product in the United States was worth 21200 billion US dollars in 2019, according to official data from the World Bank. The GDP value of the United States represents 17.50 percent of the world economy.
HISTORY OF GOLD
GOLD PRICE HISTORICAL CHART
GOLD PRICE HISTORY
The gold price has increased 85+ times in value Over the past 100 years. Gold price in 1920 was $20.65 and the gold Price in 2020 is $1970.00+ per Ounce. Experts say this growing upward trend is expected to continue. Gold outperforms the stock market, bonds, equities, S&P 500 Index, Dow Jones, Gold ETF’s (Exchange Traded Funds), and cash. Gold retains value, while the dollar has declined more than 24% in value.
Gold price isn’t tied to stocks and bonds (Which are volatile market environments). Gold‘s low correlation to other assets provides more stability and security than other investment options. That is one reason many investors buy physical Gold or Silver as long-term investments. Investors shouldn’t panic over occasional drops in gold prices. Gold always rebounds. According to 100 years of historical data, the gold price trend is always climbing upward in the long run. In most cases, the gold price rose during the biggest stock market crashes.
GOLD IS FOREVER
GOLD: THE KING OF METALS
Gold, the king of metals with brilliant shiny glow color is the most useful and precious one among all other minerals mined from the Earth. Gold is always in high demand due to its Monetary Value, incredible malleability, base metals for use in jewelry, industrial usages such as electrical connectors in computers and other electrical devices, uses of gold in Aerospace, and Dentistry.
Gold has been the most stable and long-standing circulating medium of exchange throughout world history. Gold has been used to make ornamental objects and jewelry for thousands of years. Gold has been a hedge against inflation, everlasting purchasing power, profit potential, and store of wealth for centuries. Gold Matters. Gold is forever.
DIVERSIFY YOUR PORTFOLIO WITH GOLD AND SILVER
PROTECT YOUR WEALTH, SECURE YOUR RETIREMENT
Global uncertainty and recession threat made Precious Metals Investment the best option. Protect your wealth and secure your retirement by investing in precious metals. Physical gold is a private tangible asset. Gold can not go broke or bankrupt. Gold is not vulnerable to manipulation or devaluation by the government or Central Bank.
Having an established Gold & Silver IRA (Individual Retirement Account) means that you will have direct physical ownership and full control of your assets and IRS Tax Exemption. And it also shields your retirement savings and preserves your wealth from (1) Inflation, (2) currency decline, and (3) economic collapse. As long as you have physical gold or silver in hand to sell or trade, you will never be broke, even if the economy collapses. You can only trust what you can hold. You can start your investment from one of these investment options below:
(1) Transfer your existing traditional IRA or 401k retirement savings into a Precious Metals
IRA Account backed by physical gold and silver.
(2) Or you can purchase Gold or Silver directly with cash, in the form of a bar or coin from
a precious metals dealer like Priority Gold.
Interested in Investing in Precious Metals?
Priority Gold can help you diversify your portfolio. The investment process is simple and easy. If you do not know where to start, contact us as below. Our team of precious metals specialists with expert knowledge is here to help you.
FREE PRECIOUS METALS IRA GUIDE
Learn how to invest in precious metals, gold, and silver. Priority Gold can help you invest in precious metals. The Priority Gold FREE Investment Information Guide will educate you on how diversifying your assets with precious metals may help you hedge against national and global instability. After reviewing your free information guide, you can contact any of our Priority Gold Specialists to get started now.
Our experienced team is here to answer and address all of your questions and concerns pertaining to all of your precious metals needs. You can view the Free IRA guide online now by clicking the 1st link below (or) you can download it in PDF version by clicking 2nd link below.