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MOLSY METANE ESPRING 2022XCHANGEMoney MetalsI N S I D E RAn Insider Report for Clients of Money Metals ExchangeFour Scenarios for BIG Movesin Precious Metals MarketsBy Stefan GleasonPresident, Money MetalsWorld events are driving a volatile andpotentially pivotal environment ahead forinvestors. Huge swings in financial markets are likelystill to come.Direction, magnitude, and timing aredifficult to predict. But precious metalsbulls are eying massive upside potentialfor gold and silver as war and inflationstoke safe-haven buying.Economists are paying particularly close attention tothe shape of the yield curve.A flattening yield curve (meaning long-term rates areconverging closer to shorter-term rates)suggests a slowing economy. An invertedyield curve (with long-term bond yieldsfalling below shorter duration paper)is a classic indicator of an incomingrecession.What follows are four major macroscenarios that could impact metalsmarkets in a big way in the months ahead.Scenario 1:Recession IncomingIn March, a key zone of the U.S.Treasury yield curve inverted for the firsttime since September 2019. Yields onthe two-year note moved slightly abovethose on the benchmark 10-year note.Money Metals’ poured silverbars are highly cost-effectivecompared to silver coins.In recent weeks, rising yields have stuckbondholders with big losses. Higherborrowing costs also threaten to hit thehousing market and force businesses toscale-down spending.Federal Reserve officials may be afraidto hike their ultra-short benchmarkrate much farther into this yield curvesetup.If recession warnings continue to build, the Fed mayopt to pause on tightening – and possibly even reversecourse by next year with rate cuts.State Reserve Funds AreDangerously Exposed to Inflation. . . . . . . . . . . . . . . 6Gold, being uncorrelated to the economic cycle, islikely to hold up relatively well in a recession scenario.World Investment Authority RenamesMoney Metals “Best Overall”Precious Metals Dealer. . . . . . . . . . . . . . . . . . . . . . 8Scenario 2: Summer of ShortagesLS E Inside This Issue:MOQ & A: Frequently Asked Questions. . . . . . . . . . . . . 4In the event of a recession, though, industrial metalsand other economically sensitive commodities couldsuffer sharp sell-offs – at least until the Fed reinflatesthe economy.Y METANE XCHANGERecent spikes in energy and food prices are raisingSee Four Scenarios for Big Moves, next page
demand for rubles – and the currency actuallystrengthened in value.Four Scenarios for BIG Movescontinued from previous pageIn part, that is because Moscow announced an intentto use surplus rubles to buy gold.fears of widespread supply shortfalls.A devastating war in agriculture-rich Ukrainecombined with sanctions on Russian fertilizer exportscould deliver a massive shock to the global foodsupply chain. Some arewarning of a famine infood-insecure countries.By the summer, it will betoo late to recapture lossesfrom a diminished plantingseason.Gold could suddenly become a lot more relevant toother countries, including China, as the ultimatemoney and a facilitator ofinternational trade.EGATROSHEven if no new formal goldstandard emerges, a large increasein central bank buying of goldaround the world would pressureprecious metals prices higher in terms of depreciatingU.S. currency.Summer also typically sees peak demand for gasoline.But with global energy markets thrown into chaos bywar and sanctions, supply may be insufficient to meetthat demand.Scenario 4: World War IIIThe final scenario is the bleakest for investors andfor humanity overall: an escalation of U.S.-Russiatensions past the point of no return.Any shortages in food, energy, and other essentialsare likely to extend to precious metals markets at theretail bullion level – and possibly the physical deliverymechanism on futures exchanges as well.Vladimir Putin’s government has said it won’t usenuclear weapons unless it perceives an “existentialthreat.” A U.S.-led campaign for regime changeContinued on next pageScenario 3:Global Monetary DisorderThe world monetary order based on the U.S. dollar asworld reserve currency is becoming unstable.In waging a currency war on Russia, the U.S.government may have inadvertently accelerated theprocess of dethroning King Dollar. The U.S. hasessentially announced to all countries that wish totrade with Russia that they must seek alternatives tothe dollar. (Or if they ever envision themselves goingcrossways with the U.S. in the future.)Russia, meanwhile, declared that those who wish toobtain oil, gas, and other Russian exports should beready to pay in rubles or in gold.In a surprising twist, Russia has seen an influx ofMoney Metals InsiderStefan Gleason, Presidentpublished by Money Metals ExchangeMike Gleason and Clint Siegner, DirectorsPO Box 2599 Eagle, ID 83616Office: 1-800-800-1865Secure Fax: 1-866-861-5174General – inquiry@MoneyMetals.comDepository – depository@MoneyMetals.comMonthly Program – monthly@MoneyMetals.comwww.MoneyMetals.comY METANELS MO7:00 a.m. - 5:30 p.m. (Mountain) M-F, Saturday 7:00 a.m. - 3:00 p.m.Copyright 2022 by Money Metals ExchangeE XCHANGEMoney Metals Insider2www.MoneyMetals.com
Secure Your Retirement with a Precious Metals IRAThere is no substitute for holding physical precious metals in your IRA.Not only can you purchase, hold, and sell physical precious metals using a tax-advantaged Self-DirectedPrecious Metals IRA, but also you can withdraw your bullion and take direct physical possession of itunder normal IRA distribution rules.Here’s how easy it is to get started:Step 1: Establish and Fund a Self-Directed IRA.Choose a trustee companies that has been fully vetted and approved by Money Metals.New Direction Trust Company is a Self-Directed IRA provider specializing in holding physical precious metals as well as otherassets like real estate and private loans. NDTCO is unique in that it allows clients to use the depository of their choosing andstill has highly competitive fees (starting at only 150/year). Diligent customer service and quick processing speeds areamong NDTCOs core strengths. To obtain a NDTCO application, call Money Metals and ask that it be mailed to you, or simplydownload a copy from www.MoneyMetals.com.Step 2:Designate Money Metals Exchange as Your IRA Precious Metals Dealer.Step 3:Purchase the Precious Metals Bullion Products That Fit Your Needs.Step 4:Receive Payment Confirmation.Money Metals Exchange is an approved dealer at New Direction Trust Company, and other trustee companies as well. Underyour direction, we can facilitate your IRA’s purchases (or sales) of gold, silver, platinum, or palladium.Your IRA may hold a wide array of bullion coins, rounds, and bars offered by Money Metals Exchange.You’ll receive payment confirmation from Money Metals Exchange and be able to track your shipment all the way to the depository.**Please Note: We can partner with ANY self-directed IRA custodian. Here are examples of other firms with which we have worked: Preferred Trust Millennium Trust New Vision Trust Company Gold Star Trust Company Advanta Equity Institutional IRA Services Mountain West IRARegardless of which firm you choose as custodian for your IRA account, Money Metals Exchange can deliver the physical gold,silver, platinum, and palladium bullion you want – and at great prices!To Get Started, Call Money Metals at 1-800-800-1865!Four Scenarios for BIG Moves in Precious Metals Marketscontinued from previous pagewould likely constitute such a threat.the height of the Cold War.In March, President Joe Biden asserted in supposedlyoff-the-cuff remarks that Putin “cannot remain inpower.”Among the economic consequences of war are hugespending commitments, a scramble for resources, andramped up pressure on inflation.Biden’s foreign policy handlers scrambled to issuestatements denying that the administration intends topursue regime change in Russia.The time to hunker down is before the first bombs aredropped. Hunkering down financially means holdingassets outside the banking system and far removedfrom Wall Street.They understand the dangers of such talk even ifBiden himself doesn’t.It means holding the highest-quality, most durable,most universally recognized assets. It means holdinggold and silver in physical form.MO 1-800-800-1865Y METANELSA single misstatement or diplomatic blunder couldstart World War III. The nuclear Doomsday Clock isticking closer toward midnight than at any time sinceE 3XCHANGESpring 2022
Frequently Asked QuestionsAbout Gold and Silver InvestingWe get lots of questions from the public about precious metals. Here we will answer afew of the most common, most broadly relevant questions we receive. Even if you’re aseasoned metals investor, you can surely find value in this regular FAQ feature.QUESTION: Will Fed rate hikes scare awayhouseholds.bullion buyers?The American Institute for Economic Research putstogether what it calls the Everyday Price Index.ANSWER: It’s possible that anti-gold takes in theBased on its 24 components, Everyday Prices are up9.5% from a year ago.financial media will scare some would-be bullion buyersaway. But the reality is that the Fed’s rate hikes arenothing to be afraid of – and won’t be unless and untilthe central bank actually gets out in front of inflation.Meanwhile, the ShadowStats Alternate InflationIndex shows a whopping 16% year-over-year jumpin consumer prices. That’s double the headline CPInumber!Fed officials opted for only a baby-step rate hike ofa quarter point in March despite staring at the worstinflation problem in decades. Their rate-hike campaignmay not get far, especially if market volatility andgeopolitical turmoil continue to pose risks to thestability of the financial system.Even the Bureau of Labor Statistics’ understatedinflation data shows that gold is far from an inflationadjusted high. Despite rallying to over 2,000/oz inMarch, gold prices remain below their January 1980peak of 850/oz in real terms. That old high would beequivalent to 3,100/oz after merely adjusting for theportion of currency depreciation actually reflected in theConsumer Price Index.The threats of inflation, supply disruptions, war, andsoaring debt levels should make investors nervous.And it’s likely more of them, not fewer, will find physicalprecious metals attractive as a safe haven in thisenvironment.Gold prices could easily exceed that 3,100 levelbefore being at a real peak.QUESTION: What price would gold need toQUESTION: In the event of a shortage ofreach in order to make a new high in inflationadjusted terms?physical gold and silver, will bullion dealers runout of product to sell?ANSWER: A specific price objective would besomewhat arbitrary since inflation itself is constantly inmotion and can bemeasured in manydifferent ways.ANSWER: Recent events have certainly putpressure on product availability. Customers havefaced higher premiums and delivery delays onsome bullion products, though Money Metals hascommitted significant resources to keeping thosedelays to a minimum and has performed better than itscompetitors in this regard.The most popularinflation gauge, theConsumer PriceIndex, is running ata 40-year high of 7.9%.While there doesn’t appear to be an actual shortageof silver at the moment, there are shortages in thepipeline from refiners to mints to wholesalers.As alarming as that number is, it understates the truereality of price level increases faced by AmericanIn March, the dysfunctional U.S. Mint announced thatLS MOContinued on next pageY METANEE XCHANGEMoney Metals Insider4www.MoneyMetals.com
Frequently Asked Questions (continued)QUESTION: Isn’t investing in platinum andshortages of silver blanks for striking coins will forcethe cancellation of some planned products. The Mintwill no longer be producing replica Morgan and PeaceSilver Dollars for 2022 – a big disappointment for fansof these historic coins minted from 1878 to 1935.palladium risky given that governments aremoving to abolish gasoline-powered cars?ANSWER: Platinum and palladium are usedin pollution-scrubbing catalytic converters forconventional automobiles. They havemany demand sources beyond that,including from high-tech industries,jewelers, and mints.The world’s most recognized mintcan’t figure out how to source theraw materials needed for striking itsproducts.For the past two years, it has blamedCOVID for failing to produce coins insufficient quantities to meet demand.Now it’s just looking incompetent.Money Metals has awide selection of lowpremium gold bars.Meanwhile, zero-emission vehicles maystart more widely employing fuel-celltechnologies that require platinum-groupmetals – along with silver.That said, platinum and palladium markets can bemore volatile and less liquid than gold and silver. Theplatinum group metals don’t have a history of being usedas money like gold and silver, so they may not offer thesame level of protection from a currency crisis.Even if all mints were to suspend operations, therewould still be a large secondary market for coins,rounds, and bars that have previously been purchased.Dealers can get new inventory from customers whosell back to them, though it is possible for demand tooverwhelm supply and make acquisition difficult at anyprice.Y METANELSMOBut when either metal can be obtained at a lower priceper ounce than gold – and currently platinum can – ittends to be a great value opportunity. Investors can avoid the elevatedpremiums associated with U.S. Mintproducts by opting for privatelyminted rounds and bars instead. Oreven the bullion coins produced byother government mints.Catalytic converters won’t go awayanytime soon, especially given risingdemand for cars from billions of peoplein India and China who can’t affordTeslas.E XCHANGESpecial Discounts for Monthly Silver and Gold Savers!Money Metals Exchange’s monthly gold and silver savings programis extremely popular with customers, especially because they getaccess to lower premiums than the general public. The minimumpurchase is only 100! A program description and enrollment formare posted at www.MoneyMetals.com. Monthly accumulation is asavvy, no-hassle way to protect and save your money. We can evenset up bank debiting, so you never need to write a check.Call 1-800-800-1865 or visitwww.MoneyMetals.com today.1-800-800-18655Huge Selection of Gold and Silver!Spring 2022
State Reserve Funds AreDangerously Exposed to InflationBy Stefan GleasonPresident, Money Metalscorporate debt, repurchase agreements, and otherdollar-denominated debt.The recent explosion in inflation rates caused byrunaway debt-funded federal spending and Fedmoney printing has sparked renewed interest by statelegislators in the role gold and silver play in hedgingagainst systemic risks.Substantial debt-paper holdings carry bothcounterparty risk and lownominal yields. With inflationnow running at well over 7%, thereal rate of return for taxpayersis deeply negative, at least 5%negative.With expanding concernsabout financial leverage, debtdefaults, volatility, and an erosionin purchasing power of theFederal Reserve Note “dollar,”Ohio, Arkansas, West Virginia,Wyoming, Louisiana, andArizona recently joined dozensof other states in removing taxpenalties on buying, selling, andholding gold and silver.A state reserve fund with theobjective of maintaining the valueof principal ought to include anallocation to the money actuallyprescribed to the States in Article1, Section 10 of the U.S.Constitution, i.e. gold and silver.Most of these sound money billswere passed, in large part, through the efforts ofMoney Metals’ public policy project called the SoundMoney Defense League – and with the grassrootslobbying help of Money Metals customers in thosestates.The monetary metals helppreserve purchasing power over the medium to longerterm and have a low correlation to other assets,providing important diversification and financialinsurance.Gold and silver are liquid, traded around the clockat full market value, and don’t suffer from negativeinterest rates.Meanwhile, several states are considering an allocationof state funds to the monetary metals – a way tohedge their investments in fixed income and otherassets vulnerable to inflation.The financial security precious metals provide is partof the reason central banks around the world holdthem on their balance sheets (with Russia, China,Germany, France, Hungary, Serbia, and Thailandall known to have bolstered their holdings in recentmonths).Ohio recently followed Texas in making a 3-5%gold allocation in its public pensions, and NewHampshire, Oklahoma, Wyoming, and Idahorecently examined legislation to empower statetreasurers to hold gold and silver as reserve assets.Idaho House Bill 522 and Oklahoma House Bill3681 are measures that would permit – but notrequire – the treasurer to hold a portion of funds inthe monetary metals to hedge against the risks ofinflation, financial turmoil, and debt default whilepotentially securing capital gains.By way of example, the state treasurers in bothOklahoma and Idaho each have 10 billion intaxpayer funds under management – the value ofwhich is rapidly bleeding away through negative realinterest rates.Y METANELS MOThat’s because these two states – like most states –have invested almost exclusively in low-interest debtpaper, such as, U.S. Treasuries, money market funds,E XCHANGEMoney Metals InsiderThe treasurers’ new authority would be limited toContinued on next page6www.MoneyMetals.com
State Reserve Funds Are Dangerously Exposed to Inflationcontinued from previous pageholding gold and silver directly and without thecounterparty risks inherent in virtually all other stateholdings.That’s why neither the Idaho nor the Oklahomabill empowers treasurers to invest in electronicinstruments, futures contracts, or other gold andsilver derivatives. The authority is confined to physicalgold and silver, directly owned by the state, insured,unencumbered, and stored in secure bailment.It’s as prudent as ever to provide state treasurers withoptions to hedge against the accelerating inflationthat’s been foisted upon savers, wage-earners, retirees,and the states themselves by short-sighted politiciansand central bankers in Washington, D.C.Rep. Ron Nate of Idaho is aleader on the sound money issue.that threatens to set the states’ big piles of negativeyielding debt paper on fire. MOY METANELSStates are likely to pay a high price if they fail todiversify into gold and silver. Inflation is the matchE XCHANGEMoney Metals DepositoryState-of-the-Art Security to Store Your Gold & SilverMoney Metals customers know the importance of protecting theirwealth from inflation and financial turmoil. Building a precious metalsholding is one vital step. Securing that holding is quite another.Storing your precious metals in the ultra-secure Money Metals Depositoryis prudent and affordable. Store with us and you’ll find convenience,security, and savings on shipping and insurance – at a bargain price.State-of-the-art physical securityZero cost to ship and insure Money Metals Depository iscustom-built to our specifications,armored in thick steel andhardened concrete. Y ou’ll never pay a dime toship and insure when youorder from Money MetalsExchange and elect tostore your metal with MoneyMetals Depository. Money Metals Depository uses onlytop-of-the-line UL Class 3 vaults. Our facility uses 24-hour monitoringand the latest security protocols. Located in low-crime Eagle, Idaho,with the county sheriff’s office inthe same building. Nor is there any cost to shipand insure when you sellprecious metals stored withMoney Metals Depository toMoney Metals Exchange.Contents fully insured byLloyd’s of London Metals stored in a standardaccount are fully segregatedand are never commingledwith any other customer’sholding or our own. Depository holdings aretotally independent fromany bank, Wall Street, andWashington, DC.Access to Cash Loans If DesiredIf you need storage for any portion of your metals stockpile,take advantage of the most secure, convenient, and affordableoption available anywhere. Just call us at 1-800-800-1865 or visitMoneyMetals.com/depository to get started.1-800-800-18657MONEYMETALSDEPOSITORYSpring 2022
MO E XCHANGEWorld Investment Authority Renames MoneyMetals “Best Overall” Precious Metals DealerMoney Metals Exchange has just been namedthe “best overall” dealer in the United States for2022 by Investopedia.com, a top authority in theworld’s investment industry.“Money Metals provides responsive customerservice during business hours via live chat,phone, or email. Its website also has anextensive resource library to help new investorslearn and experienced investors stay on top ofthe market,” Investopedia noted. “Money Metalsalso provides price alerts for investors waitingfor their price to buy.”“Its customer-centric focus has translatedinto highly competitive pricing, personalizedservice, a pathway for new investors, and oneof the best online reputations, making MoneyMetals Exchange our choice as the best overallonline gold dealer,” wrote Investopedia’sanalyst Richard Best after hecarefully examined all major onlinedealers and reiterated MoneyMetals’ #1 ranking from theprior year.“We’re deeply honored to have receivedthis incredible distinction from theworld’s leading investmentauthority, especially given theU.S. precious metals industryis so competitive,” said StefanGleason, president of MoneyMetals Exchange.“Customers can easilynavigate its website to shopfor coins and bullion by categoryand weight.“While Money Metals is knownfor fair, transparent pricingand fast delivery of customerorders, we’re especially proud ofour no-pressure sales approach, widearray of services, public policy initiatives, andsignificant educational efforts,” said Gleason.“Beginning investors can get theirfeet wet in gold investing with anautomatic monthly savings plan starting at 100 a month or by purchasing a prepackagedportfolio. [Money Metals] has highlycompetitive prices, low shipping costs, vastproduct selection, and an exceptional customerexperience,” Investopedia noted in its investoralert announcing the latest rankings.Investopedia is the world’s leading source offinancial content on the internet, ranging frommarket news to retirement strategies, investingeducation, and insights on financial products.Investopedia has a reputation for providingunbiased and accurate investment information,and its website is visited by literally tens ofmillions of investors worldwide each month.The top investment news and information hubmade special mention of Money Metals’ secure,insured depository (one of several integratedservices that no other major U.S. dealer offers).The top Investopedia recognition is by no meansthe first #1 ranking Money Metals has receivedfrom a global ratings group. In 2015, Bullion.Directory named Money Metals “Best in the USA”after comparing hundreds of precious metalsdealers and surveying over 20,000 investors.Money Metals Isn’t Admired Onlyfor Great Prices, Fast Shipping MOLSY METANEE XCHANGEMoney Metals InsiderMOY METANELSInvestopedia also lauded the significant newsand educational content, along with otherinvestor tools, Money Metals provides daily toassist and educate its customers. LSY METANEE 8XCHANGEwww.MoneyMetals.com
Secure Your Retirement with a Precious Metals IRA To Get Started, Call Money Metals at 1-800-800-1865! Step 1: Establish and Fund a Self-Directed IRA . Choose a trustee companies that has been fully vetted and approved by Money Metals. New Direction Trust Company is a Self-Directed IRA provider specializing in holding physical precious metals .
