FAITH IN GOLD RATHER THAN GOVERNMENT

Faith in government is near historic lows, with only one of five Americans trusting Washington to do what’s right most of the time. As you read this, odds are you are nodding your head, regardless of political affiliation. Only 28 percent of Republicans trust the federal government, according to the Pew Research Center, while just 15 percent of Democrats do.

That lack of faith in government policies reflects the fact that many Americans fear Uncle Sam is trying to take a bigger bite out of their wallets. This is an excellent reason to own gold, a secure investment that is a reliable long-term store of wealth. Physical gold cannot be touched by the government, nor can Washington devalue it. In contrast, Congress and the President do have the power to devalue the U.S. dollar, if they chose to do so.

A more likely risk to the currency comes from Washington’s latest major initiative – tax reform, which poses the danger that lower corporate taxes might push the economy into hyper-drive, when it’s already expanding at a steady pace, a stimulus that could significantly accelerate inflation and therefore devalue the U.S. currency.

Yet another concern is the changing of the guards at the Federal Reserve Bank, which is an independent entity within the government. To shield it from political pressure, the Fed functions on its own; it does not answer to the president or Congress. With a new central bank chairman, Jerome Powell, about to take over from Janet Yellen, investors are wondering if he will handle the economy as adroitly as his predecessor.

As these questions hang over a skeptical nation, Americans can know that physical gold, whether in bullion or coin form is a safe, reliable investment that maintains value through the years, no matter what happens in Washington.