By Mike Gleason, Money Metals Exchange
As voters contemplate their choices for the next President, investors are evaluating their options within the major asset classes.
When it comes to the presidential race, voters are limited to two main options – either Donald Trump or the Democratic nominee. After Joe Biden’s recent debate performance, many Democrats are expressing concerns about his ability to lead effectively. Some are even suggesting that he step aside to make way for a more viable candidate.
While the political landscape remains uncertain, investors have a plethora of ways to diversify their wealth. The three primary asset classes to consider are debt obligations, business ownership in publicly traded companies, and tangible assets like precious metals.
Traditional financial advisors often overlook the advantages of including hard assets in an investment portfolio. Precious metals, in particular, offer unique benefits such as being free from counterparty risk, bankruptcy, and inflation by central banks.
Gold, for example, has historically proven to be a reliable store of value, outperforming bonds over various time periods. The future of government bonds looks bleak due to factors like inflation risk, credit risk, and interest rate risk, exacerbated by soaring federal budget deficits.
Regardless of the election outcome, investors should remain cautious. The nation’s financial challenges are unlikely to be resolved by the next administration, whether Democrat or Republican. This underscores the importance of raising awareness about the need for fundamental monetary reform.
While politicians may differ on fiscal policy, the monetary system remains a critical issue. Some politicians, like North Dakota governor Doug Burgum, have criticized unsound fiscal policies but have not clearly articulated their stance on monetary policy.
Governor Burgum’s home state of North Dakota ranks favorably on the Sound Money Index but faces challenges like income tax on precious metals transactions. Burgum has advocated for abolishing the state’s income tax, which could alleviate tax implications on sound money transactions.
In conclusion, the upcoming election will have implications for investors, emphasizing the importance of diversification and the inclusion of hard assets like precious metals in investment portfolios. Political uncertainty and economic challenges highlight the need for awareness and reform in the monetary system to safeguard wealth and financial stability.