Philp N. Diehl, the 35th director of the U.S. Mint, started U.S. Reserve as a way to spread his passion for fine coins across the country.
But Diehl also had an even more serious reason for starting the largest distributor of sovereign limited-issue precious coins in the country: He wanted to help people to hedge against the long-tail risks that are ever increasing in the U.S. economy. Specifically, Diehl has said that the single best hedge against serious economic turmoil is the physical possession of gold, silver and platinum coins.
You don’t need gold, until you do
Just 10 years ago, Venezuela was still a thriving Latin American country. It had a strong middle class and enjoyed one of the highest living standards in South America. By 2013, the country was in turmoil. There were widespread food shortages and gasoline stations often ran dry.
By 2018, people were eating dogs to survive, hospitals had no basic medicines and wheelbarrows full of Bolivars, the local currency, wouldn’t buy a loaf of bread when there was any to be bought at all.
While Venezuela’s problems are attributable to the implementation of deeply irresponsible and historically failed socialist policies, it is far from guaranteed that a similar scenario could not play out in the United States at some point over the next 50 years. Read more: US Money Reserve | Facebook and US Money Reserve | LinkedIn
Various reports in Venezuela describe an emerging barter economy. But for those who were smart, maintaining an adequate portion of their portfolios in physical precious coins, they have enough to continue living a reasonable lifestyle, even as the streets around them are littered with the bodies of their starved compatriots.
In the United States, outright socialism isn’t the problem. But that doesn’t mean that the United States is immune. Changing demographics and skyrocketing costs associated with interest payments and mandatory entitlement programs are stretching the federal budget to the brink.
At the same time, it is possible that gross tax revenues will sharply decline in coming years as they have in states like Illinois that have attempted to dig themselves out of their fiscal irresponsibility by raising taxes through the roof. At some point, the end result of spiraling debt and falling revenues is likely to be Venezuela-style hyperinflation.
Now is the time to hedge your portfolio through the use of the only asset class in history that has never experienced a devastating crash: precious coins. U.S. Money Reserve can help.
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