Fiscal leaders are boasting about how the United States avoided a recession despite being the cause of the problem in the first place. Americans know the fundamental economic issue rests at the top, but they might not be able to explain precisely what it is.

In this week’s The Gold Spot, Scottsdale Bullion & Coin Precious Metals Advisor John Karow and Founder Eric Sepanek discuss the disastrous Modern Monetary Theory (MMT), where the US economy could be headed, and why the US dollar might collapse.

Modern Monetary Theory (MMT): What It Is & Why It Matters

Most Americans aren’t thinking about the theoretical model undergirding their economy. However, the reign of Modern Monetary Theory (MMT) is negatively impacting their financial stability daily. This experimental and controversial economic theory posits that debt doesn’t need to be controlled since governments can simply print more money and raise taxes.

Under this model, growth is largely artificial, and inflation is inevitable. It’s a convenient excuse for politicians to throw money at every problem without implementing meaningful changes and effective solutions. This isn’t some backroom conspiracy, either. Our fiscal czars publicly acknowledge their laissez-faire attitude toward debt accumulation.

Janet Yellen, the Secretary of the Treasury, has openly and consistently called debt an asset. Founding Father Alexander Hamilton agreed that debt could be leveraged advantageously but only “if it is not excessive.” The US government has evidently lost sight of that critical part which has launched the country into a staggering debt cycle.

Experts Warn of Dire Economic Future

After years of blindly following a crackpot policy, the US economy is suffering the natural consequences of fiscal irresponsibility: runaway national debt, exponential interest payments, and a debt-laden dollar. The Federal Reserve is trying to happy-talk its way through the fallout of feckless policies by pointing to a few isolated economic metrics.

The mounting pressure of these economic shocks is getting harder to ignore, even for the most ardent defenders of MMT. Experts are raising concerns about the direction of the economy and advising investors to brace for impact.

JPMorgan CEO Jamie Dimon has called the looming debt debacle the “most predictable crisis” in history, underscoring the inevitable downsides of unlimited spending. Even Jerome Powell echoed these concerns warning the US economy “is on an unsustainable fiscal path.” The Fed Chair highlighted the fact that debt is expanding faster than the economy. Experts warn that the surging debt bubble would have devastating downstream effects on national and private levels.

Unfortunately, our perverse political incentive structure encourages politicians to make expensive promises and spend exorbitant money to capture votes. They’ll be long out of office by the time the pain from their negligent fiscal decisions is felt. Predictably, the weight will fall on the average American.

US Debt to Hit $144T by 2053?!

It already strains the mind to visualize the $34 trillion debt, but every metric points to an exponential surge in borrowing, spending, and debt accumulation. The bipartisan Congressional Budget Office which provides official economic projections has estimated the national debt will reach a shocking $144 trillion by 2053. That’s the equivalent of $1 million worth of debt per household.

These alarming stats have many people concerned about a potential dollar collapse. With the BRICS nations vying for currency dominance on the world stage, the USD might be toppled before the debt crisis completes its natural crash course.

Get Informed to Stay Protected

Investors have to sift through conflicting economic reports to get the truth. While the specifics might be disagreed upon, the overwhelming chorus is that the debt crisis is pushing the economy toward a cliff.

[T]he heads of the largest financial institutions in the world all agree upon one thing: the direction of our debt is unsustainable.

–SBC Founder Eric Sepanek

It’s not a matter of if our debt burden becomes a problem…but when. Instead of relying on the analysis of misleading politicians, smart money investors are taking it upon themselves to get to the bottom of this economic quagmire.

We’ve compiled a comprehensive Modern Monetary Theory (MMT) report covering the flawed framework that has caused the decline of the US economy. Request your FREE copy today to help you take control of your financial stability.

Fiscal leaders are boasting about how the United States avoided a recession despite being the cause of the problem in the first place. Americans know the fundamental economic issue rests at the top, but they might not be able to explain precisely what it is.

In this week’s The Gold Spot, Scottsdale Bullion & Coin Precious Metals Advisor John Karow and Founder Eric Sepanek discuss the disastrous Modern Monetary Theory (MMT), where the US economy could be headed, and why the US dollar might collapse.

Modern Monetary Theory (MMT): What It Is & Why It Matters

Most Americans aren’t thinking about the theoretical model undergirding their economy. However, the reign of Modern Monetary Theory (MMT) is negatively impacting their financial stability daily. This experimental and controversial economic theory posits that debt doesn’t need to be controlled since governments can simply print more money and raise taxes.

Under this model, growth is largely artificial, and inflation is inevitable. It’s a convenient excuse for politicians to throw money at every problem without implementing meaningful changes and effective solutions. This isn’t some backroom conspiracy, either. Our fiscal czars publicly acknowledge their laissez-faire attitude toward debt accumulation.

Janet Yellen, the Secretary of the Treasury, has openly and consistently called debt an asset. Founding Father Alexander Hamilton agreed that debt could be leveraged advantageously but only “if it is not excessive.” The US government has evidently lost sight of that critical part which has launched the country into a staggering debt cycle.

Experts Warn of Dire Economic Future

After years of blindly following a crackpot policy, the US economy is suffering the natural consequences of fiscal irresponsibility: runaway national debt, exponential interest payments, and a debt-laden dollar. The Federal Reserve is trying to happy-talk its way through the fallout of feckless policies by pointing to a few isolated economic metrics.

The mounting pressure of these economic shocks is getting harder to ignore, even for the most ardent defenders of MMT. Experts are raising concerns about the direction of the economy and advising investors to brace for impact.

JPMorgan CEO Jamie Dimon has called the looming debt debacle the “most predictable crisis” in history, underscoring the inevitable downsides of unlimited spending. Even Jerome Powell echoed these concerns warning the US economy “is on an unsustainable fiscal path.” The Fed Chair highlighted the fact that debt is expanding faster than the economy. Experts warn that the surging debt bubble would have devastating downstream effects on national and private levels.

Unfortunately, our perverse political incentive structure encourages politicians to make expensive promises and spend exorbitant money to capture votes. They’ll be long out of office by the time the pain from their negligent fiscal decisions is felt. Predictably, the weight will fall on the average American.

US Debt to Hit $144T by 2053?!

It already strains the mind to visualize the $34 trillion debt, but every metric points to an exponential surge in borrowing, spending, and debt accumulation. The bipartisan Congressional Budget Office which provides official economic projections has estimated the national debt will reach a shocking $144 trillion by 2053. That’s the equivalent of $1 million worth of debt per household.

These alarming stats have many people concerned about a potential dollar collapse. With the BRICS nations vying for currency dominance on the world stage, the USD might be toppled before the debt crisis completes its natural crash course.

Get Informed to Stay Protected

Investors have to sift through conflicting economic reports to get the truth. While the specifics might be disagreed upon, the overwhelming chorus is that the debt crisis is pushing the economy toward a cliff.

[T]he heads of the largest financial institutions in the world all agree upon one thing: the direction of our debt is unsustainable.

–SBC Founder Eric Sepanek

It’s not a matter of if our debt burden becomes a problem…but when. Instead of relying on the analysis of misleading politicians, smart money investors are taking it upon themselves to get to the bottom of this economic quagmire.

We’ve compiled a comprehensive Modern Monetary Theory (MMT) report covering the flawed framework that has caused the decline of the US economy. Request your FREE copy today to help you take control of your financial stability.

Gold heads for second weekly drop on this morning’s inflation data, following a series of economic reports that have investors rethinking the timeframe of the Federal Reserve’s expected interest rate increases. The DG spot price dropped just below the key psychological $2000 an ounce level on the inflation report.

The Labor Department reported Friday morning that the producer price index, which measures prices received by producers of domestic producers for goods and services, rose 0.3% for January, the biggest shift since August. Economists surveyed by Dow Jones had forecast an increase of just 0.1%.

Earlier this week, the consumer price index came in hotter than expected for last month. Higher interest rates are typically considered bearish for gold, so cuts would be supportive for the precious metal. But holding rates high for a longer period of time would be bearish.

Front-month gold futures rose 0.5% Thursday to settle at $2,014.90 an ounce on Comex, and the most-active April contract dropped 1.2% in the first four days of the week. Bullion declined 0.2% in January after gaining 0.7% in December and rising 3.2% in November. The metal rose 13% in 2023. The April contract is currently down $2.00 (-0.10%) an ounce to $2012.10 and the DG spot price is $1999.80.

Atlanta Fed President Raphael Bostic said Thursday that there’s no rush to cut interest rates and reiterated that the Fed wants the interest rate to sustainably hit the central bank’s 2% target.

“The evidence from data, our surveys, and our outreach says that victory is not clearly in hand, and leaves me not yet comfortable that inflation is inexorably declining to our 2% objective,” Bostic said at a speech in New York Thursday. “That may be true for some time, even if the January CPI report turns out to be an aberration.”

So-called core CPI, the cost of goods excluding volatile food and energy prices, gained 0.4% in January and was up 3.9% from a year earlier, according to data from the Labor Department. That compares with economists’ forecasts for 0.3% and 3.7% respectively. Including food and energy, the CPI rose 0.3% for the month and 3.1% year on year, compared with estimates of 0.2% and 2.9% respectively.

About 91.5% of the investors tracked by the CME FedWatch Tool are betting that the Fed will keep rates unchanged next month, while 8.5% expect a 25 basis point cut. A month ago, more than 65% of investors were anticipating a cut in March. A majority of investors tracked by the tool now also anticipate the Fed will hold rates steady at the following policy meeting in May. Most are now looking to June for a rate cut.

The central bank has raised interest rates by 5.25 percentage points since March 2022 in an effort to cut inflation, but kept rates unchanged at 5.25% to 5.50% earlier this month.

Front-month silver futures gained 2.5% Thursday to $22.95 an ounce on Comex, and the March contract advanced 1.6% in the first four days of the week. Silver fell 3.8% in January after dropping 6.1% in December and advancing 12% in November. It ticked up 0.2% in 2023. The March contract is currently up $0.144 (+0.63%) an ounce to $23.095 and the DG spot price is $22.96.

Spot palladium rose 1.9% Thursday to $969.50 an ounce and has surged 10% so far this week. Palladium tumbled 11% last month after advancing 8.6% in December and losing 9.5% in November. Palladium plummeted 38% last year. The current DG spot price is down $2.30 an ounce to $960.50

Spot platinum increased 0.8% Thursday to $906.20 an ounce and gained 2.9% so far this week. Platinum fell 8% last month after rising 8.1% in December and falling 0.7% in November. Platinum dropped 6.8% in 2023. The DG spot price is currently down $2.10 an ounce to $903.10.

Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.

Gold heads for second weekly drop on this morning’s inflation data, following a series of economic reports that have investors rethinking the timeframe of the Federal Reserve’s expected interest rate increases. The DG spot price dropped just below the key psychological $2000 an ounce level on the inflation report.

The Labor Department reported Friday morning that the producer price index, which measures prices received by producers of domestic producers for goods and services, rose 0.3% for January, the biggest shift since August. Economists surveyed by Dow Jones had forecast an increase of just 0.1%.

Earlier this week, the consumer price index came in hotter than expected for last month. Higher interest rates are typically considered bearish for gold, so cuts would be supportive for the precious metal. But holding rates high for a longer period of time would be bearish.

Front-month gold futures rose 0.5% Thursday to settle at $2,014.90 an ounce on Comex, and the most-active April contract dropped 1.2% in the first four days of the week. Bullion declined 0.2% in January after gaining 0.7% in December and rising 3.2% in November. The metal rose 13% in 2023. The April contract is currently down $2.00 (-0.10%) an ounce to $2012.10 and the DG spot price is $1999.80.

Atlanta Fed President Raphael Bostic said Thursday that there’s no rush to cut interest rates and reiterated that the Fed wants the interest rate to sustainably hit the central bank’s 2% target.

“The evidence from data, our surveys, and our outreach says that victory is not clearly in hand, and leaves me not yet comfortable that inflation is inexorably declining to our 2% objective,” Bostic said at a speech in New York Thursday. “That may be true for some time, even if the January CPI report turns out to be an aberration.”

So-called core CPI, the cost of goods excluding volatile food and energy prices, gained 0.4% in January and was up 3.9% from a year earlier, according to data from the Labor Department. That compares with economists’ forecasts for 0.3% and 3.7% respectively. Including food and energy, the CPI rose 0.3% for the month and 3.1% year on year, compared with estimates of 0.2% and 2.9% respectively.

About 91.5% of the investors tracked by the CME FedWatch Tool are betting that the Fed will keep rates unchanged next month, while 8.5% expect a 25 basis point cut. A month ago, more than 65% of investors were anticipating a cut in March. A majority of investors tracked by the tool now also anticipate the Fed will hold rates steady at the following policy meeting in May. Most are now looking to June for a rate cut.

The central bank has raised interest rates by 5.25 percentage points since March 2022 in an effort to cut inflation, but kept rates unchanged at 5.25% to 5.50% earlier this month.

Front-month silver futures gained 2.5% Thursday to $22.95 an ounce on Comex, and the March contract advanced 1.6% in the first four days of the week. Silver fell 3.8% in January after dropping 6.1% in December and advancing 12% in November. It ticked up 0.2% in 2023. The March contract is currently up $0.144 (+0.63%) an ounce to $23.095 and the DG spot price is $22.96.

Spot palladium rose 1.9% Thursday to $969.50 an ounce and has surged 10% so far this week. Palladium tumbled 11% last month after advancing 8.6% in December and losing 9.5% in November. Palladium plummeted 38% last year. The current DG spot price is down $2.30 an ounce to $960.50

Spot platinum increased 0.8% Thursday to $906.20 an ounce and gained 2.9% so far this week. Platinum fell 8% last month after rising 8.1% in December and falling 0.7% in November. Platinum dropped 6.8% in 2023. The DG spot price is currently down $2.10 an ounce to $903.10.

Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.

Platinum and silver are two valuable precious metals that are difficult to tell apart to the untrained eye. However, these physical metals differ significantly in various ways including value, physical characteristics, market conditions, histories, and investment considerations.

Platinum vs Silver: Similarities

Inflation Hedge

Platinum and silver can offer investors a reliable hedge against inflation. While stocks, mutual funds, ETFs, bonds, and other paper assets can be subject to volatile market conditions, physical assets have inherent value based on their precious metal contents. The prices of platinum and silver products are generally more stable in the face of market uncertainty and unpredictability.

High Purity

Purity refers to the percentage of an asset’s composition that consists of the designated precious metal. The higher the purity, or fineness, the more valuable the coin. Platinum and silver have exceedingly high purity ratings, offering maximum inherent value and optimized protection for investors. For example, American Platinum Eagles have a 99.95% purity rating while American Silver Eagles clock in at 99.99%.

IRA Eligibility

Investors can make platinum and silver part of their retirement plan through a precious metals IRA. This unique form of retirement account permits the holding of physical assets for a more diversified nest egg. However, platinum and silver assets must still meet strict fineness, weight, and asset type requirements set forth by the IRS.

👉 Further Reading: Find out precisely what the government counts as eligible precious metals for IRA investing

Platinum vs Silver: Differences

Appearance

The visual similarities between platinum and silver assets have been tripping up people for centuries. In fact, the term platinum is derived from the Spanish word “platino” which means “tiny silver” because early Spanish explorers acknowledged how closely it resembled silver. Both precious metals have distinct luster, but platinum tends to reflect light more brightly than silver. Furthermore, silver is more prone to corrosion which can impact the sheen of older silver assets. A quick way to distinguish platinum and silver bars is to look for purity markings which usually mention the fineness rating along with the type of metal.

Value & Price

The staggering price gap is one of the first differences investors notice when comparing platinum vs silver. While platinum prices have hovered around $1,000/oz for the past few years, silver prices have remained just above $20/oz. It’s crucial to bear in mind that the current market rate of a precious metal isn’t indicative of its investment merit. The disparate evaluations in terms of price-per-ounce vary between platinum and silver for a variety of reasons including supply and demand, market size, and historical price performance.

Price Performance

Historically, silver boasts a much steadier price performance, offering investors more financial stability and predictability. On the other hand, platinum tends to experience more volatility due to its considerably smaller market. With fewer trades happening, it doesn’t take much to jostle the market which can send prices tumbling or skyrocketing. Another cause of platinum’s unsteady price action is its monopolized production. South Africa, Russia, and Zimbabwe account for over 92% of platinum mining, giving these unpredictable regions immense influence over supply and, as a result, price performance.

Scarcity

Rarity is another important difference between platinum and silver which heavily influences the varying evaluations and price action of these metals. Currently, worldwide supplies of platinum amount to 5.8 million ounces while silver supplies reach over 1 billion ounces. That means silver is more than 172 times more available than platinum. This massive difference in scarcity is the principal driving force behind platinum’s exceedingly high price per ounce when compared to silver.

Industrial Demand

Platinum and silver share a number of useful physical characteristics including malleability and high conductivity of heat and electricity. These unique properties are highly sought after in various industrial applications. However, silver’s more affordable price point makes it the preferable metal. Besides its high price tag, platinum’s scarcity and unpredictable supply represent considerable obstacles to widespread adoption.

Liquidity

The combination of a larger market, stronger demand, and higher affordability makes silver a favored choice for those seeking quick and efficient transactions in the precious metals market. Silver’s higher liquidity gives investors greater investment flexibility when compared to platinum which suffers from restrictive and unpredictable supplies. Additionally, silver’s lower cost-per-ounce opens investors up to a broader market of buyers further increasing this shiny metal’s liquidity.

Asset Diversity

Silver’s accessibility, price stability, historical demand, and reliable supply have secured its popularity above platinum. This difference in demand is reflected in the diversity of products available containing each precious metal. Generally, private and public mints produce more silver bullion assets in the form of bars and coins when compared to platinum products. Furthermore, there are significantly more silver investment-grade coins due to this precious metal’s use in circulating coinage. Overall, silver represents a richer trove of asset diversity for investors, making it easier to find products that meet varying needs and budgets.

Platinum vs Silver: Which is the better investment?

Silver enjoys more popularity than platinum for several reasons including a lower barrier of entry, greater demand, higher liquidity, and steadier price performance. However, the ultimate determination of the “better” investment requires an assessment of each investor’s specific investment circumstances.

If you’re interested in learning more about diversifying with physical metals, grab a FREE copy of our Precious Metals Investment Guide. It’ll explain everything you need to know about choosing the right metals for a properly diversified and secured portfolio.

Platinum and silver are two valuable precious metals that are difficult to tell apart to the untrained eye. However, these physical metals differ significantly in various ways including value, physical characteristics, market conditions, histories, and investment considerations.

Platinum vs Silver: Similarities

Inflation Hedge

Platinum and silver can offer investors a reliable hedge against inflation. While stocks, mutual funds, ETFs, bonds, and other paper assets can be subject to volatile market conditions, physical assets have inherent value based on their precious metal contents. The prices of platinum and silver products are generally more stable in the face of market uncertainty and unpredictability.

High Purity

Purity refers to the percentage of an asset’s composition that consists of the designated precious metal. The higher the purity, or fineness, the more valuable the coin. Platinum and silver have exceedingly high purity ratings, offering maximum inherent value and optimized protection for investors. For example, American Platinum Eagles have a 99.95% purity rating while American Silver Eagles clock in at 99.99%.

IRA Eligibility

Investors can make platinum and silver part of their retirement plan through a precious metals IRA. This unique form of retirement account permits the holding of physical assets for a more diversified nest egg. However, platinum and silver assets must still meet strict fineness, weight, and asset type requirements set forth by the IRS.

👉 Further Reading: Find out precisely what the government counts as eligible precious metals for IRA investing

Platinum vs Silver: Differences

Appearance

The visual similarities between platinum and silver assets have been tripping up people for centuries. In fact, the term platinum is derived from the Spanish word “platino” which means “tiny silver” because early Spanish explorers acknowledged how closely it resembled silver. Both precious metals have distinct luster, but platinum tends to reflect light more brightly than silver. Furthermore, silver is more prone to corrosion which can impact the sheen of older silver assets. A quick way to distinguish platinum and silver bars is to look for purity markings which usually mention the fineness rating along with the type of metal.

Value & Price

The staggering price gap is one of the first differences investors notice when comparing platinum vs silver. While platinum prices have hovered around $1,000/oz for the past few years, silver prices have remained just above $20/oz. It’s crucial to bear in mind that the current market rate of a precious metal isn’t indicative of its investment merit. The disparate evaluations in terms of price-per-ounce vary between platinum and silver for a variety of reasons including supply and demand, market size, and historical price performance.

Price Performance

Historically, silver boasts a much steadier price performance, offering investors more financial stability and predictability. On the other hand, platinum tends to experience more volatility due to its considerably smaller market. With fewer trades happening, it doesn’t take much to jostle the market which can send prices tumbling or skyrocketing. Another cause of platinum’s unsteady price action is its monopolized production. South Africa, Russia, and Zimbabwe account for over 92% of platinum mining, giving these unpredictable regions immense influence over supply and, as a result, price performance.

Scarcity

Rarity is another important difference between platinum and silver which heavily influences the varying evaluations and price action of these metals. Currently, worldwide supplies of platinum amount to 5.8 million ounces while silver supplies reach over 1 billion ounces. That means silver is more than 172 times more available than platinum. This massive difference in scarcity is the principal driving force behind platinum’s exceedingly high price per ounce when compared to silver.

Industrial Demand

Platinum and silver share a number of useful physical characteristics including malleability and high conductivity of heat and electricity. These unique properties are highly sought after in various industrial applications. However, silver’s more affordable price point makes it the preferable metal. Besides its high price tag, platinum’s scarcity and unpredictable supply represent considerable obstacles to widespread adoption.

Liquidity

The combination of a larger market, stronger demand, and higher affordability makes silver a favored choice for those seeking quick and efficient transactions in the precious metals market. Silver’s higher liquidity gives investors greater investment flexibility when compared to platinum which suffers from restrictive and unpredictable supplies. Additionally, silver’s lower cost-per-ounce opens investors up to a broader market of buyers further increasing this shiny metal’s liquidity.

Asset Diversity

Silver’s accessibility, price stability, historical demand, and reliable supply have secured its popularity above platinum. This difference in demand is reflected in the diversity of products available containing each precious metal. Generally, private and public mints produce more silver bullion assets in the form of bars and coins when compared to platinum products. Furthermore, there are significantly more silver investment-grade coins due to this precious metal’s use in circulating coinage. Overall, silver represents a richer trove of asset diversity for investors, making it easier to find products that meet varying needs and budgets.

Platinum vs Silver: Which is the better investment?

Silver enjoys more popularity than platinum for several reasons including a lower barrier of entry, greater demand, higher liquidity, and steadier price performance. However, the ultimate determination of the “better” investment requires an assessment of each investor’s specific investment circumstances.

If you’re interested in learning more about diversifying with physical metals, grab a FREE copy of our Precious Metals Investment Guide. It’ll explain everything you need to know about choosing the right metals for a properly diversified and secured portfolio.