Asset Strategies International – Perspective

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Rich CheckanBy Rich Checkan of Asset Strategies International

Another Federal Open Market Committee meeting is in the books, and the markets are as fickle as ever.

Why wouldn’t they be? This is like the movie Groundhog Day. It’s déjà vu all over again… with proper attribution to the late, great Yogi Berra.

The Fed is out of bullets. They manipulate markets with words. They promise time after time to begin raising rates. They even give targets for indicators to hit to trigger increases in interest rates.

Yet, for a decade now, they meet, discuss, release statements and leave interest rates alone. Targets are reached, triggers are tripped and they leave interest rates alone.

Sound familiar?

As I wrote earlier this month, the Fed is damned if they do and damned if they don’t. There’s no easy, painless way out of the mess they’ve created. Their rate increase hints carry no bite… no punch. And, even when they eventually act, it will necessarily be so small of an increase it will have little more than a psychological effect.

If they ever announce a meaningful increase, the debt service would suffocate an already crippled economy.

As this story repeats itself time and time again, the U.S. dollar remains strong and commodities remain weak. Investors remain uncertain and uneasy… and in cash.

Or, they move to something better than cash.

Over the past six months, precious metals have been flying off the shelves. Investor demand has been so strong the mints and refiners cannot make enough coins, bars and rounds to keep up with it. The same scenario is playing out with every dealer we talk with around the country.

Can precious metals prices go lower from here?

Of course they can. But be honest, if you were in the market for a new sweater, and you saw the perfect sweater on sale for 40% off, would you buy it? Or, would you pass up the sale hoping it would go to 50% off?

That’s where we are with gold. Heck, for silver we are at 65% off. Do you really need to wait for it to go to 75% off to buy?

Of course you don’t. That’s why our phones are ringing off the hooks. That’s why delivery times on minted products are soaring. That’s why premiums are skyrocketing. You are buying faster than the mints and refineries can take raw gold or silver and mint them into coins, bars and rounds.

Good for you!

I truly believe now is one of the best opportunities I’ve seen in the past 20 years to buy real assets… precious metals, real estate, rare coins, timber, rare stamps and rare strategic metals.

Why?

  • The 100+ year trend for the U.S. dollar is down by 96%, but, in the short-term, the dollar is rallying counter to the trend.
  • Commodities are dirt cheap… significantly undervalued in my opinion.
  • Unprecedented monetary expansion has been set in motion since the financial crisis and will eventually need to be unwound. Nobody knows for sure how that plays out, but we all have a pretty good idea.

Your dollars buy more than they should right now. Take advantage of the opportunity. We have outlined a few options for you this month. For me, right now, nothing is more compelling than Perth Mint Certificates. This is the only way I know, in this environment of soaring precious metals premiums, for you to buy 100% backed and insured gold, silver and platinum at lower premiums than you could last year. And, it comes with a government guarantee.

 

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