The Election, The Economy and Precious Metals

The Market Gage - Dillon Gage's Precious Metals Newsletter

As the old saying goes, there are two things in life that are CERTAIN: death and taxes. Would anyone be upset if I add a third?

THIS ELECTION! And I’m CERTAIN everyone is happy it’s coming to an end.

Or is it?

Markets don’t like uncertainties, so I suspect that even after the winner of the Presidential election is announced, some news will emerge to that will affect the markets. The country just seems so divided, that whoever wins some backlash is likely. (Having said that, I expect very volatile markets on Wednesday)

My concerns don’t stop with market uncertainty, I feel the real problem lies in what will become of Congress in 2017? May I be so bold as to add one more certainty? No matter who is our new President, Congress in 2017 will most likely be more divided than ever.

Will our debt, entitlement problems and healthcare ever be addressed?

How serious is the U.S. economy? Here is how we spent tax dollars last year.

  • Social Security- 24 percent of the budget
  • Medicare, Medicaid and children’s health insurance- 25 percent
  • Safety net programs- 10 percent of the budget
  • Defense and international security- 16 percent

Add these four items together and 75 percent of the budget is gone.

Pay down the debt? How?

Oh one more item: Do you know that the share of Americans in the labor force, meaning those with jobs or actively looking for work, is at a FOUR DECADE low at 62.8 percent.
Friday’s jobs report came in at 161.000 jobs created. Sounds like a good number until you dive a little deeper and discover that 90,000 PART TIME jobs were created and 103,000 full time jobs were LOST, resulting in more families having to work multiple jobs to make ends meet and let’s not forget part time jobs come without healthcare benefits.

Need I say more?

Does all this give credibility to the large increase in how the “retail” investor is diversifying their portfolio to include metals as a hedge? Is this the reason that the Silver ETF holdings reached an all-time high last month?

Have I given you enough to think about?

The fact remains that now more than ever, regardless of the kind of investor you are, a BALANCED portfolio that include precious metals is a must to reach your financial goals.

Oh, one more thing, Please vote!!!

Even though all the news has been on the presidential race, there are many important down ballot races that affect you locally. It’s your duty and a privilege as a proud American to cast your vote.

If you skip out you have no one to blame but yourself.

God Bless America and God Bless our Veterans.

Have a wonderful Monday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.