Madden Mischief

If Goldilocks was tasting the porridge big central bank bears are cooking up and consuming more of than U.S. Treasuries during these debt-mounting days, she’d probably be into that shiny stuff the same color as her hair—gold!

Now like many others, I too am finding that color more delicious to tip my investment toes into than buying any more Microsoft and Invidia as my tech stocks just took a trouncing yesterday.  

And it’s a story TransMedia Group will be sharing why companies are rapidly securing high-value gold contracts and stakes in state-of-the-art gold refineries.

Goldilocks Smart

It’s all part of the story about why there is this deliberate rush by central banks to reduce their dollar exposure and secure instead that hard, tangible asset that can’t be printed or frozen.

These institutional buyers are Goldilocks smart as they’re thinking long-term and “price-insensitive,” meaning their constant accumulation is building a powerful base under the gold market, one that could send prices far higher in the months ahead. 

Yes, the world’s largest financial institutions are quietly shifting their reserve which is reshaping the market for gold.  For the first time in nearly three decades, foreign central banks collectively hold more gold than U.S. Treasury bonds. 

Why are Central Banks Buying So Much Gold?

The answer is threefold, which is becoming clearer every day based on these facts:

• Nations are diversifying away from the U.S. dollar’s dominance.
• Gold can’t be frozen by foreign powers or governments when they’re open, thus it rests in a haven called sanction protected.
• Amid today’s debt concerns, soaring U.S. deficits make paper assets riskier by the day.

Yes, the result is gold prices are exploding to all-time highs, fueled by economic volatility, a 10% drop in the U.S. dollar, and unprecedented global demand for safe-haven assets.

Unquestionably, when equities wobble, capital seeks safety and gold is the historical hedge that’s independent and aloof from Wall Street’s wobbling.

Right now, global demand is rising, and supply is tight, so many believe that can dramatically amplify upside potential especially during stressful times during government shutdowns, sweeping tariffs and socialists elected mayors.

Certified financial advisors and fiduciaries like Nancy Hite will tell you that IRAs and 401(k)s can be positioned with physical metals using clean, tax-deferred rollovers.

Well, that’s the story, the latest version of Goldilocks and the three Bears named gold, gold and more gold!

Tom Madden is an author of countless articles, blogs and books who also has an eye out for investments, one day it’s stocks, then silver coins and today gold.  His PR firm TransMedia Group is always on the lookout for stories about entrepreneurship successes and investment opportunities, and right now he’s seeing the glitter of gold.  Madden started his firm in Manhattan when he left NBC where he was vice president and mentor to then CEO Fred Silverman, known for creating TV shows that would become a network’s gold.