Let’s Get REAL!

J.P. Morgan, like every other domestic and foreign financial institution has been dissing gold for years (and quietly buying it by the truckload). Featured concerns have been that gold offers no yield, no dividends, and no P/E because it has no earnings. Nevertheless, in a report released today by J.P. Morgan Asset Management, a review of 20-year annualized returns by asset class, from January of 1999 through December of 2018, clearly displays that gold outperformed the assets it was designed to protect. Specifically, gold achieved a 7.7% annualized return, Oil 7.0%, S&P 500 5.6%, 60/40 (S&P500:High Quality U.S. Fixed Income) 5.2%, 40/60 5.0%, Bonds 4.5%, EAFE 4.0%, Homes 3.4%, inflation 2.2%, and the average investor 1.9%.

Essentially, the report clearly indicated that investors would have done well by greatly ignoring (and certainly not paying for) such “professional” advice for the past two decades. Additionally, it is entirely incumbent upon investors to realize that the Fed and U.S. government have spent every waking moment of that 20-year span easing, squeezing, and otherwise manipulating anything that could positively affect the value of stocks, bonds, and residential real estate. During the same span of time, those same organizations spent equal effort “advising” investors of the non-productive downside of gold ownership. It’s time to realize that the fake news being disseminated is coming from sources created and advertised to exist for investor benefit, yet all indications are that it’s being used to inhibit, misinform, and/or outright bamboozle those it should be assisting.

The argument of public or private banking in the U.S. is as old as our country and a number of our President’s have been assassinated for their related opinions and actions. There is no doubt in my mind that banking should be run like a business, but I believe that a bank should be accountable to and run for the benefit of its country’s citizens, not shareholders. It’s always been a tough argument to make, but it requires a responsible and concerted government effort which our $22 trillion national debt shows to be severely lacking from current and recent administrations, certainly most of those since coming off the gold standard in 1971. Additionally, financial institutions offered no substantial warnings prior to the Dot Com Crash that consumed 78% of NASDAQ funds and the 2008 banking crisis clearly revealed fraud throughout the real estate market and the banks that funded them.

With all the talk of wage disparity, just for starters, there should be no way for CEO’s of public companies to make more than 100 times the wage of the company’s lowest paid employee. Even more importantly, if a CEO commits white collar crimes, they should be treated accordingly with swift justice as guaranteed by the constitution, but getting shuffled off to Club Med instead of Club Fed is simply not acceptable. At any rate, it’s time for investors to take care of themselves and realize that as artificially squelched as precious metals prices have been, gold is only 1/3 below its all-time high. When the coming dollar reboot, or terrorist attack, or sudden and precipitous stock market crash spreads calamity throughout our financial system, gold and other precious metals are due to shine brighter than ever before. Call American Bullion for assistance now, at (800) 653-GOLD (4653) and don’t get caught without a chair when the music stops.