Brace Your Portfolio with Gold & Silver for the Coming Currency Storm

• The monetary system is stressed due to massive debt levels and money printing
• Recent banking crisis and inflation indicate growing instability
• Gold and silver are positioned to benefit as currencies devalue
• Recommend allocating some savings to precious metals

The Ongoing Crisis in Global Monetary Policy

Over a decade after the 2008 financial crisis, the global monetary system remains under intense strain. Recent events like the mini-banking crisis in the US triggered by Silicon Valley Bank's failure as indicative of mounting instability.

With debt levels continuing to balloon from already elevated levels, Central Banks are engaged in a precarious balancing act. The current inflation outbreak looks unlikely to dissipate anytime soon and interest rate hikes are potentially making supply issues even worse by discouraging capacity expansion. The Fed will be forced to reverse course as the economy slows. At that point in time the FED is going to have to realize they've gone too far with their course of direction.

With currencies set to keep devaluing, exposure to assets like gold and silver has made sense historically and even more sense now.

The Investment Thesis for Gold and Silver

For investors looking to protect their portfolio against currency debasement, allocate a portion to precious metals like gold and silver.

• Gold and silver offer a reliable way to preserve purchasing power as inflation persists
• Current low sentiment has driven mining stocks to very attractive valuations and will do until the end of 2023
• Scaling into positions on pullbacks represents a favorable risk/reward
• A 10% portfolio allocation is prudent given the upside potential
• Being mentally prepared to weather volatility and stick to a long-term thesis is key

With global debt expansion fundable only through money printing, currency crises will accelerate. Investors should strongly consider shifting a share of assets into historically reliable safe-haven commodities. Precious metals stand ready to enter the next stage of a secular bull market as economic turbulence intensifies.

Key Takeaways

• Excessive money printing has stressed the monetary system dangerously
• Inflation likely to be higher for longer despite tightening efforts
• Currency devaluation makes hard assets like gold and silver appealing