Although the U.S. did not enter a recession in 2023, a number of consumers believed it might.
In April 2023, more than two thirds of Americans — 68% — felt a recession would occur by that November, according to a survey conducted by insurance and financial services provider Nationwide.
Economists observed signs in 2022 and 2023 that reportedly indicated a recession might have been forthcoming.
One of those signs — a yield curve inversion — has preceded each recession in the U.S. since 1960, the New York Federal Reserve says.
Typically, longer-term investments offer the chance to collect greater returns. During a yield curve inversion, items that mature in shorter periods of time provide higher yields.
The yield on 3-month Treasury bills rose above that of 10-year Treasury notes in October 2022. As of February 21, 2024, U.S. Bank reports that the inversion remains in effect.
In 2022, the United States experienced two consecutive quarters of negative gross domestic product activity, another scenario that some perceive as a possible recession sign.
Analysts have also weighed in about the risk of a 2024 recession. In July 2023, 78% of economists said there was a 1 in 2 chance of a recession occurring within 12 months. Bankrate’s most recent quarterly survey shows that a smaller but still significant percentage of economists — 45% —anticipate a recession.
The Link Between Gold and Recessions
When stock market uncertainty and economic recessions have occurred in the past, some portfolio holders have gravitated toward assets they considered to be safe-haven options.
For example, during the 2007 to 2009 Great Recession, the Dow Jones Industrial Average fell by 51.1% from its 2007 peak to its lowest point in 12 years on March 5, 2009, according to the Federal Reserve Bank of Atlanta, while gold prices rose by nearly 50% from 2007 to 2009, a CME Group analysis found. In 2009 alone, gold rose by approximately 13% according to U.S. Bureau of Labor Statistics data.
On average, gold has risen in price by 28% during six of the last eight U.S. economic recessions.
The prospect of a pronounced downturn can potentially fuel interest in precious metals like gold. For example, recessionary concerns helped drive the annual global investment in gold coins and bars up 10% in 2022, according to the World Gold Council.
Portfolio Holders Are Purchasing Gold
Although the threat of a recession may still be looming, some analysts’ predictions have been more positive.
The Conference Board, for instance, released a forecast in February 2024 predicting a slowdown in economic growth, but not a recession.
If a recession does take place in 2024, and stock market uncertainty leads to interest in gold subsequently rising, prices for the precious metal could also increase.
As a result, portfolio holders who proactively purchase physical gold may be able to obtain such assets at a lower cost.
Many Americans have already made gold and other precious metals purchases. Edward S., for instance, said in one of U.S. Money Reserve’s reviews available on the Better Business Bureau website that the company helped him “go from my 401(k) that has been losing money to a gold [IRA] plan that is making me more return on my investment.”
George T. gives the company a five-star rating in one of the recent U.S. Money Reserve reviews shared on the Better Business Bureau website.
“They deserve this rating,” George says. “I have never felt this comfortable with doing any business over the phone. I got every single [penny’s] worth of my money. I would recommend them to anyone.”
In one U.S. Money Reserve review on Google, portfolio holder Kenneth P. praises the U.S. Money Reserve Account Executive who provided assistance with his precious metals transactions.
“We have prospered under her supervision of our gold and silver selections and have been exceedingly pleased with her guidance,” Kenneth says.
In another review, Joseph E. also praises the service he has received from U.S. Money Reserve.
“It’s been a rocky few years lately,” Joseph says in a Google review of the company. “But I found my financial relief with U.S. Money Reserve. They are the real deal. They have been trustworthy and always willing to help me in my investment.”
Utah-based portfolio holder James E. says he was impressed with the Account Executive he spoke with because they worked to understand his precious metals knowledge and goals.
“He did not even mention me buying anything,” James explains in a U.S. Money Reserve review on Google. “He also asked questions to make sure he was addressing the correct need I had at that time. I needed to get [out] of one IRA. He put me in touch with Kiara. She knew what to do. Within one day, I had my IRA transferred and backed by gold. What a relief.”
To speak to one of U.S. Money Reserve’s Account Executives about purchasing gold and other precious metals and to hear more about the products U.S. Money Reserve has available in its current inventory, call 1-888-356-7074. Additional information is also available on U.S. Money Reserve’s website.
