Summary
Rising government debt and supply shortages are driving gold and silver into a long-term bull market, making them essential for wealth protection and investment, while caution is advised in the broader market.
Economic Outlook and Investment Strategies
The US has passed the point of no return on debt, with debt exceeding 20% of GDP and interest costs rising due to maturing 12-15 year bonds from 2009-2019 now at 4-5%, causing a double whammy of rising interest costs and widening deficits.
To preserve wealth, invest 12% in precious metals like gold and silver for crisis situations, and buy tangible assets like REITs specializing in assisted housing with government-funded rent, providing a safe and high yield.
Precious Metals and Mining
Gold is in the early stages of a bull market, likely to rise long-term due to government debt and deficits, with monetary expansion and unsustainable debt levels driving prices higher.
Silver supply has been dropping for a decade while industrial demand is rising, particularly from electronics and photovoltaic industries, causing a supply-demand imbalance and likely leading to higher prices.
Global Investment Opportunities
Attractive companies can be found globally, particularly in Hong Kong and China, offering dividend yields of 5-6% compared to the US, with China presenting three to four times the value of the US for the same allocation despite potential sanctions.
Uranium is a promising investment due to increasing use of nuclear power to reduce emissions, with expected high demand in the future.
Alternative Investment Strategies
REITs managing an ecosystem around railway stations or hubs, consistently buying more properties in the area, offer a good strategy for optimizing returns.
Dividend Aristocrats funds, holding 50-100 stocks that have consistently increased dividends for 10+ years, provide a rising income stream suitable for retirement, with virtually assured annual dividend growth.