Have You DSA-Proofed Your Portfolio?

• The Democratic Socialists of America (DSA) are making significant inroads among Democratic voters, pushing the Democratic Party towards radical, socialist economic policies.
• DSA policies could result in higher corporate taxes, higher income taxes, and could hurt the value of 401(k)s and other retirement accounts.
• Gold has been a traditional safe haven asset for centuries during periods of economic turmoil, and owning gold could help safeguard your wealth if DSA is able to start making headway enacting its policies.

Americans who buy gold tend to skew politically conservative, with many voting Republican. So it’s only natural that they pay a lot of attention to the political fights within the Republican Party, between Trump supporters and Never-Trumpers, between country club Republicans and social conservatives, between Israel supporters and non-interventionists, etc.

But while these internecine disputes may take up much of your attention today, there’s a brewing fight on the other side of the aisle that’s arguably far more important than any infighting going on within the Republican Party. And that’s the fight between the old guard of the Democratic Party and the young upstarts from the Democratic Socialists of America (DSA).

To say that the DSA holds some radical positions is an understatement. Among the things the DSA wants to do away with are the US Presidency, the US Senate, the US Supreme Court, the Department of War, our national borders, and prisons.

To be fair, they do maintain that some of these are long-term goals they wish to achieve. But it’s not unfair to say that a DSA-run USA would look far different from the country we live in today.

While some DSA officials have taken flak for their public pronouncements, both from Republicans and from Democrats, they’re sticking to their guns. And DSA-supported candidates are making headway, knocking off incumbent Democrats in New York, winning primaries in Colorado, and making serious headway in Michigan.

The future of the Democratic Party seems to lie with the DSA, as they have massive support among younger Democrats. And if the Democratic Party ends up being co-opted by the DSA, your savings could be at risk.

Are you concerned about the DSA takeover of the Democratic Party? If so, what are you doing to DSA-proof your portfolio?

The DSA Takeover: What It Means for Democrats

The old guard of the Democratic Party is understandably wary of DSA candidates, whom they view in many cases as inexperienced and a liability to the party. Many Democrats believe that DSA candidates are allowing Republicans to caricature all Democrats as hardcore left-wing socialists, and that pushing DSA candidates could cost Democrats the 2026 midterm elections.

While there may be an element of truth to that, particularly in districts that may feature tight races, the reality is that younger Democrats are more sympathetic to the policies of the DSA, both on foreign policy and domestic policy.

Younger Democrats are less likely to support Israel than older Democrats, and they’re disenchanted with an old guard that reflexively supports Israel no matter what the Israeli government does.

Younger Democrats are also highly aware of the high cost of living today, and the difficulty in trying to get ahead. Prices for food, housing, and medical care continue increasing, leading many young people to conclude that they’ll never be able to live the same life their parents did.

That makes them highly susceptible to the siren song of the DSA, which promises health care for all, child care for all, and a better life for younger Americans.

Those of us old enough to remember the Soviet Union and life behind the Iron Curtain recognize the ultimate bankruptcy of the DSA’s positions. But to young people who have no experience with communism and socialism and who are frustrated with their lot in life, the DSA’s socialist policies sound appealing.

The DSA Takeover: What It Means for You

While the DSA’s policies are cloaked in “tax the rich” rhetoric, who exactly are the rich who will be taxed?

Mayor Mamdani in New York City continually rails against billionaires whom he claims aren’t paying their “fair share.” But as part of a recent proposal to tax second homes owned by “the rich”, his proposal roped in not just the 13,000-odd homes owned by the ultra-rich, but nearly one million homes owned by successful New Yorkers.

When you look at data for the top 10% of wealthy households in the US, those households own over 68% of the wealth in the country. But the annual income of those households starts at only $210,000 a year.

With so many dual income households today, that means that a husband and wife both working, with the husband making $120,000 a year and the wife making $90,000 a year, would put them in the richest 10% of American households.

While that isn’t bad money, it’s not necessarily enough to live comfortably on, particularly if you have children and live in a large metropolitan area. It’s no wonder then that 1 in 3 households making over $200,000 a year consider themselves struggling financially.

But the top 10% of earners could become targets for tax the rich schemes if the DSA comes to power. Whether it’s higher income taxes, punitive wealth taxes, or levies on personal property, the DSA is putting the politics of envy to work, enjoying the support of the less fortunate and causing hard workers who have made good investments to start sweating.

What if you’ve worked decades to build up a nest egg so that you can retire comfortably? Do you want to see your hard work and dedication torn apart so that Starbucks baristas who went $400,000 in debt to get gender studies degrees can get free food, health care, housing, and child care provided to them by the government?

Why should other people’s bad decisions be paid for by the people who made good decisions? That’s what the DSA’s policies would likely mean.

The democratic socialists aren’t being coy about what they want either. They’re out in the open, calling themselves democratic socialists and being up front about what they intend to do.

Democratic socialists want to eradicate capitalism and bring about a socialist economy, with state-owned enterprises. And just like DSA is one faction within the Democratic Party, DSA has its own factions too, including Marxists who want to push DSA towards communism.

If you’re old enough to remember the days of the German Democratic Republic, or the Democratic Republic of Vietnam, or if you see what’s going on today in the Democratic People’s Republic of Korea, you understand that “Democratic” in a name is very often a code word for socialism or communism, and that the more democratic something claims to be, the less democratic it likely is.

If DSA members were to get their way and transform this country into a democratic socialist republic, eradicating capitalism and instituting state ownership of corporations, the US economy as we know it would be over.

State ownership of industry could mean no more public ownership of stocks and bonds, no more building up your 401(k) through growth in the S&P 500. The economy as it exists today might no longer exist, and we could experience an economy more akin to the Union of Soviet Socialist Republics than that of our United States.

DSA-Proofing Your Portfolio With Gold

Of course, none of this is going to happen overnight, or at least we hope it won’t. But with nearly 60% of self-identified democratic socialists being under the age of 45, and 66% of them saying that they’re very motivated to get out and vote, the clock is ticking.

It could only be a matter of time before DSA’s plans come to fruition, and if you haven’t prepared yourself ahead of time, it may be too late once they take power.

With corporate America being the subject of much of DSA’s ire, how could you possibly help maintain your wealth in the face of what might be coming?

This is where traditional safe haven assets like gold can come into play. Gold has served as a safe haven asset for centuries, helping preserve wealth during times of economic upheaval and political uncertainty.

Whether you decide to purchase gold for a gold IRA, which allows you to take in-kind distributions in the form of physical gold, or whether you decide to buy gold with cash to stash at home, gold can help protect you against potential negative future events.

If socialists come to power they may be able to use the force of government to shut down corporate America, but they won’t have the manpower to come door to door seizing gold. So while your 401(k) might suffer, the gold in your safe could continue gaining value.

Now is the time to start taking stock of the future, anticipate what could happen in the next few decades, and start taking steps to prepare.

Goldco has helped thousands of Americans benefit from owning gold, which has risen over 1,400% in price since the beginning of the 21st century. With over $3 billion in precious metals placements and a commitment to customer service, Goldco has worked hard to make itself one of the best gold companies in the country.

If you’re worried about the future and want to know more about how gold might be able to help you, contact one of our precious metals specialists today.