Will President Biden’s Mistakes Drive Up Gold Prices in 2021?
In December 2020, Steve Forbes, editor-in-chief of Forbes business magazine, answered the question, “Will Gold Prices Skyrocket in 2021?” with a definitive “YES!”
Forbes explained why: “The reason is an age-old one: the government churning out too much money. Since the coronavirus crisis shut down the economy, Washington has spent trillions of dollars in relief efforts. The national debt has increased more in recent months than in the previous 10 years put together. Help was needed, but most of the spending came from money being created out of thin air by the Federal Reserve. This is a formula for inflation – and traditionally that means the price of gold will be moving up, big time.”
When my wife, Gena, and I decided that I would become a spokesperson for GOLDCO, it wasn’t a hard decision at all. We’ve been a big fan of gold and other precious metals for over 40 years. Gold has always been a part of our financial portfolio. Our gold’s return has also helped us make future investments and even bailed us out of tough economic times. Let me explain.
My first purchase of gold was over 40 years ago. Believe it or not, I buried my first gold coins in my backyard. I used to tell my mom back then that one day I was going to dig up some buried treasure and give it to her for all the sacrifices she made early on in my life. She was surprised when I did just that!
I didn’t grow up with a silver spoon (or gold coin) in my mouth. Far from it. I grew up in abject poverty in a small country town (Ryan) in Oklahoma. My mom was a single parent, and she had her hands full with three growing Norris boys. We all eventually served in the military. My younger brother Wieland paid the ultimate price in Vietnam.
After serving in the Air Force in South Korea, I came home in the 1960s and started a string of karate studios in Southern California. I also started doing a few small acting jobs there. I lived meal-to-meal for decades until a break came when my action movies became successful. Outside of buying a new home and helping my family, I invested in gold and silver. That was when I first learned what the word “diversify” meant.
Economic recession hit the U.S. from 1973-75. It came about because of government spending on the Vietnam War, a Wall Street stock crash in 1973-74 and rocketing gas prices (caused by OPEC raising oil prices and embargoing oil exports to the U.S.).
In 1977, Jimmy Carter became the president, and the U.S. entered what economists call a period of “stagflation,” in which the economy experienced both high inflation and slow economic growth. Despite countless attempts by Carter’s administration to remedy the fiscal fallout, the U.S. hit two walls: an energy crisis in 1979 followed by another recession in 1980.
Though Ronald Reagan campaigned on a new set of rules to bolster the economy, what would later be called Reaganomics, it seemed like every aspect of the financial market was a mess with little hope in the future for its volatility turning to stability.
But then I discovered gold. It rode in to save the day like one of my characters in my action movies.
Back then, when I surveyed the value of gold through the years, I was pleasantly surprised to learn that the universally prized yellow metal was the one commodity that kept soaring in value. In 1973, its average value was $97 an ounce, according to Macrotrends. By 1980, an ounce was valued at $614. Today, an ounce of gold is valued at $1,845, climbing 80% of the time since 2000.
Our gold returns have been so lucrative over the years that we’ve reinvested our return back in precious metals as well as personal property in our now home state of Texas. In the mid ‘90s, Gena and I started our Lone Star State investments in Dallas, where for a decade I filmed my “Walker, Texas Ranger” television series.
We also cashed in our gold and silver in 2015 to help build our adjacent 50,000 sq. foot CFORCE Water Bottling Co., after we discovered a sustainable artesian water source on our ranch that delivers clear, clean water with a high pH and deliciously smooth taste due to its natural silica content. (As majority owner and a Nationally Certified Woman Owned Business, Gena is actually the CEO of CFORCE Bottling Company, with only about a half-mile commute to her office!)
During the economic recession in the late 2000s, most people were struggling to make ends meet let alone able to make donations to organizations like Kickstart Kids, which is our nonprofit charity that teaches students character through karate in middle schools across Texas. When donations were down, we were able to cash in some of our gold to help support our nonprofit life mission and those employed by it.
That brings me to our most prized personal use of gold. On very special occasions, giving gold coins to someone has proven much more valuable than other gifts. Gold and silver gifts are not only personal and tangible, but also provide a great memory and sentimental moment that increases their net worth as well.
You might be asking: Is gold and silver still worth purchasing and investing in, especially in the initial year of a new Democratic president? Absolutely, YES!
Myra P. Saefong, assistant global markets editor who has covered the commodities sector for MarketWatch for 20 years, wrote a great column in November titled, “Why gold will be the ultimate winner of the U.S. presidential election.”
First, Saefong reminded us: “While the U.S. is an important component of that gold story, it’s not the only factor, says Juan Carlos Artigas, head of research at the World Gold Council. He said, ‘Gold is a global market.’”
Second, Saefong explained that a Biden presidency also brings with it a heighten concern over higher taxes, more stimulus spending, larger government budget deficits and corrections in the stock market. So, in actuality, gold’s appeal is even more a “haven investment.”
That is why Frank Holmes, chief executive officer of U.S. Global Investors, said, for gold, the election wasn’t a “blue versus red” competition between the Democrats and Republicans. It is a “push the gold button” event.
Holmes advice is my advice: “Investors should consider buying real assets and gold given the Federal Reserve balance sheet expansion and understated inflation.”
For these reasons and more, Holmes believes gold will skyrocket to $4,000 an ounce by 2023!
With all the stimulus spending by Washington, Steve Forbes recently again wrote: “The Biden administration is hot to spend the $1 trillion that’s unspent from previous pandemic relief measures and is pushing another $1.9 trillion package. It wants to follow that with a $3 trillion infrastructure bill. A cascade of cash is about to flood the economy. Oblivious to the inflation risk, the Federal Reserve seems eager to print the money to finance it all.”
Then Forbes simply concluded with this advice: “So watch out for the latter part of 2021 – and buy gold before then.”
This article was originally published at World Net Daily.