How to Protect Your Wealth in a World of Confused Monetary Authorities

Guest post from Luis Aureliano

It is no longer news that the U.S. economy is struggling to stay afloat as economic power gradually shifts to the eastern world. More worrisome is the fact that the U.S. Dollar is slowly losing its position as the global reserve currency. The USD replaced the British pound as the global reserve currency in the Bretton Woods Conference of 1944, and it seems the reign of the greenback is nearing its end.

I ordinarily wouldn’t have been worried about the state of the U.S. economy or the prospects of the USD because the media has its way of blowing things out of proportion. More so, conspiracy theorists can always find ways to interpret normal events to suit their bias. However, the fact that the U.S. Federal Reserve seems to be at loss on how to halt the decline in the U.S. economy is giving me sleepless nights.

This piece provides insight into how investors can find financial safe havens to protect their wealth in gold, cryptocurrency, and other alternative investments.

Even the fed doesn’t know where the economy is headed.

In the last couple of years, gold has practically lost its shine because stocks were soaring to all-time highs. In fact, some investors who had their money in Gold IRA investments might have been forced to stocks to chase the highs on Wall Street. Nonetheless, there’s no denying that the growth in stocks is akin to a house of paper cards that will eventually crumble.

The U.S. Federal Reserve wields huge influence in providing insight into the state of the economy and determining how investors react in the general market. If the Fed raises interest rates, it signals a vote of confidence in economic growth and investors have fewer reasons to seek safety in gold.

However, earlier this month, the Fed’s actions (and inactions) are triggering a wave of confusion in the markets on key policy issues with the biggest influence on the economy. For one, the Fed has not decided whether it can afford to raise interest rates now that economic growth is slowing. The U.S. economy grew at a malnourished 0.7% annual rate in the first quarter of the year and the Fed is playing it safe not to spook the market.

The safe haven status of gold, cryptocurrency and alternative assets is undeniable!

The world is sitting on a keg of economic gunpowder but you can reduce your risk by investing in gold, silver, cryptocurrency and other alternative investments. Gold has been regarded as safe haven currency for hundreds of years because of its ability to retain its value in periods of economic uncertainty. In fact, the value of gold tends to soar in times of geopolitical instability because investors often rush out of paper assets such as stocks to seek refuge in gold.

Interestingly, the opportunities for gaining exposure to gold are diverse and there’s an investment vehicle for all types of investors. For instance; you can buy physical bullion, you can do some CFD trading activities on gold, you can invest in the shares of gold mining firms, you can trade gold ETFs, and you can become a jeweler.

Cryptocurrencies such as Bitcoin are still in the phase of early adopters and there’s an incredible opportunity for investors before cryptocurrency goes to the mainstream market. Cryptocurrency is here to stay despite all the campaigns being sponsored by traditional financial institutions to discredit Bitcoin and other cryptocurrencies. If you want to invest in cryptocurrencies, you should expect volatility in the short-term, but you can be sure that cryptocurrency is the long game in the grand scheme of things.

Thanks to Luis Aureliano

Bio: Luis Aureliano, a business writer and financial analyst. With over 15 years of experience in global finance and an MBA in economics and management, Luis’s areas of expertise include business, marketing, communications, personal finance, macro economics, stocks and emerging markets.

Gary Christenson

The Deviant Investor