Worried About the Recession? Gold Can Help
As you may have heard, many news outlets and analysts are reporting that a recession is coming very soon, and some are even saying that it is happening now. Living through (another) recession can be devastating for many families and industries. If you have worries about the recession, you are not alone. Keep reading to learn more about the recession and how you can protect your savings and retirement by investing in gold.
What is a Recession?
According to Investopedia, a recession is a significant, widespread, and prolonged downturn in economic activity. Because recessions often last six months or more, one popular rule of thumb is that two consecutive quarters of decline in a country’s Gross Domestic Product (GDP) constitute a recession. Economists, including those at the National Bureau of Economic Research (NBER), which dates U.S. business cycles, define a recession as an economic contraction starting at the peak of the expansion that preceded it and ending at the low point of the ensuing downturn.
Investopedia continues that recessions typically produce declines in economic output, consumer demand, and employment. The NBER considers indicators including nonfarm payrolls, industrial production, and retail sales, among others, in designating the start and end of U.S. recessions, usually months after the peak and trough of the business cycle.
Is a Recession Happening Now?
In an article by CNBC, experts debate whether the U.S. is on the brink of an economic downturn, many Americans are already bracing themselves for a recession.
To that point, 66% of Americans worry that a major recession is right around the corner, up from 48% who said the same a year ago, according to a survey by Allianz Life Insurance Company of North America. One big reason is that people fear high inflation, which has pushed prices higher for goods and services.
The survey found 82% worry inflation will have a negative impact on their purchasing power in the next six months. Moreover, the same share of respondents said they expect inflation to get worse over the next 12 months. Meanwhile, 71% said their wages are not keeping pace with rising expenses.
How to Protect Your Savings During the Recession
In the same article by CNBC, it states that fewer millennials have a financial plan in place to handle rising inflation. The survey found 56% currently have such a plan, down from 61% in the first quarter. Millennials face a particularly challenging future when it comes to saving, keeping up with the cost of living, and financially surviving a recession on top of it all.
Luckily, there are some easy ways to protect yourself during a recession.
- Pay off your credit card debt. During a recession, interest rates tend to climb. This means that paying off your credit card will become more and more expensive as time goes on, taking more and more money away from your savings. Make paying off your credit card debt your main priority now so that you save yourself money in the long run.
- Focus on savings. Check where you can trim spending fat, such as cutting cable, temporarily turning off some subscriptions, and setting a budget. With the extra money, start to stockpile your savings and focus on paying off your credit card debt. It is important to establish a backup emergency fund, no matter how much it is.
- Invest in gold. A great way to ride out the recession and protect your financial future is by investing in gold. Instead of wasting time with a side gig, you can invest your money and watch it grow. The value of gold rises as the value of the dollar decreases, such as in a recession, so the sooner you are able to invest in gold, the better. Gold is easy to liquidate should you need the cash quickly and can provide great benefits for your future.
Protecting Your Financial Future with Priority Gold
Gold is a wonderful way to protect your savings, retirement, and future through a recession. Investing in gold requires little-to-no knowledge or expertise, can have a small buy-in cost and will provide great benefits to your future. This is especially true if you decide to open a Precious Metals IRA and invest in gold for the long term. If you are ready to invest in gold to protect your savings and secure your future, we can help. You do not have to navigate the waters of investing in gold alone.
Priority Gold is one of the most trusted precious metals dealers in the United States with a BBB A+ Rating, AAA Rating with Business Consumer Alliance, and 5 Stars Rating with TrustLink. We specialize in providing precious metals investment services with Security, Liability, and Great Convenience for customers. Our team is committed to helping to streamline their precious metals purchases at a fair price, selecting the right precious metals portfolios, and meeting their important financial objectives.
We offer Free Storage for qualifying Gold & Silver IRA accounts, a fast & easy gold buying process, and smooth IRA Transfer. And gold shows up on schedule. Priority Gold guarantees the highest customer service standards, which come with honesty, professional conduct, and the Ethical Code of Business.
For more information, visit us at prioritygold.com