Judge Napolitano Quote: Partnering with Lear Capital - the leader in making gold and silver available to smart investors - just made sense to me. I'm thrilled to be onboard with such a solid company helping families protect their savings from the catastrophic consequences of the endless borrowing that goes on in Washington.
Questions?
Speak to your account representative at (800) 781-5308

No Precious Metals Portfolio is Truly
Balanced Without the Benefits of

Silver

Historically in times of economic crisis, gold prices have risen — but silver has risen even more.

The big picture for silver
is very compelling. In 2022, portfolios heavy in stocks experienced a 20-30% loss while the price of the shiny metal gained 6%; not bad for portfolio preservation. .

Amidst a fragile world economy, there is renewed interest in precious metals investing to protect savings against a wake of destabilizing economic drivers. Silver remains critically undervalued in the opinion of many industry experts and has been for some time.

Historically, in times of economic crisis, gold prices have risen — but silver has risen even more. In this report, we’ll explore the reasons why certain experts recommend diversifying 10-20% of your portfolio in precious metals. And we’ll show you why silver, though often thought of as second to gold, may deserve a second look.

3
A CLOSER LOOK from LEAR CAPITAL
Hedging Economic Uncertainty in a
Post-Pandemic World

Covid-19 presented an excuse for unprecedented money printing, well above and beyond the asset purchases and quantitative easing after the 2008 housing bubble crash.

Cash rained down on Main Street, not just Wall Street, in the form of stimulus checks and all kinds of subsidies for all kinds of reasons: rent assistance, childcare supplements, extended unemployment, payroll assistance for small businesses and “just because” economic impact payments to almost everyone. The aftermath: $31+ trillion in national debt.

All of these cash influxes hit the broader economy, not just hedge fund managers and big banks. This put a tremendous amount of cash on the streets chasing fewer and fewer goods as supply chains felt the challenge of covid-related restrictions and staffing shortages. While government bonds are a common place to seek refuge in times of crisis, 2022 was disastrous. According to a CNBC article, “The longest U.S. government bonds have a maturity of 30 years. Such long-dated U.S. notes lost 39.2% in 2022, as measured by an index tracking long-term zero-coupon bonds. That’s a record low dating to 1754 ... You’d have to go all the way back to the Napoleonic War era for the second-worst showing, when long bonds lost 19% in 1803.”

In times of economic uncertainty, experts recommend diversifying with precious metals.

Close
01

Hedging Economic Uncertainty Due to Pandemic Spending

The residual economic effects of the pandemic continue to leave its stamp on the U.S. economy. In an era where the full extent of the economic damage is unknown and worst-case scenarios could result in a chain reaction of falling dominoes across a heavily leveraged economy, the ability to protect wealth is at a premium. Read More

[ Click Here to Read More ]
At some point, these bullish supply and demand dynamics will translate into some big upside price moves. In the meantime, silver represents a great bargain opportunity for value investors.
MIKE GLEASON
Seeking Alpha
Words cut out of a newspaper surrounding a paper man cut out
Questions? Speak to an Account Executive at (800) 781-5308 5
02

Maintaining Your Portfolio’s Buying Power During Inflation

Every time the government spends money it hasn’t extracted from the economy through taxation, they are using various instruments to “print” more dollars and expand the money supply. When the money supply is expanded, the dollars become less rare. This devalues the currency’s purchasing power, resulting in inflation. Read More

[ Click Here to Read More ]
I’ve often contended that the Fed’s goal, all along,
has been to drive inflation higher. To what end?
The answer is simple. While today’s dollar has less value
than a dollar 10 years ago, today’s dollar still pays off
a dollar’s worth of ten-year-old debt.
It’s like getting a discount on debt.
DAVE ENGSTROM
Precious Metals Expert and Author
Two fingers holding a very small dollar
6 Questions? Speak to an Account Executive at (800) 781-5308
A CLOSER LOOK from LEAR CAPITAL
Maintaining Your Portfolio’s Buying Power
During Inflation

U.S. inflation is running at its fastest pace in the past 40 years, coming in at 6.5% in 2022.

Government overspending is often inflationary. And, although today’s dollar will buy less than it did 10 years ago, the Fed knows today’s dollar still pays off a dollar’s worth of ten-year-old debt. Inflating the money supply is one way to pay down public debt with cheaper dollars. It is a source of money that doesn’t have to be explicitly taxed, which typically angers the voting public. But every dollar they add subtracts purchasing power from dollars already in existence.

Printing money is an easy, but insidious fix for governments. Every dollar created erodes the power of dollars you’ve already earned and saved. Meanwhile, politicians continue to spend, and our national debt and deficits continue to soar. The consequence? Inflation. In response, the Federal Reserve increased its key interest rate seven times in 2022 as consumer goods prices continued to rise throughout the year. Increasing the key interest rate can help to slow down inflation by making it more expensive for consumers and businesses to borrow money. However, it can also have negative effects on economic growth and employment.

Interest rate hikes led to a sizeable correction in our stock markets — and some experts predict continued downward performance for the stock market. Since the Second World War, most recessions have been brought on by the Fed’s attempts to lower inflation. Is your portfolio ready for this shock?

Close
03

Offsetting the Risk
of Artificial Markets

For decades, stock markets used to be thought of as 100% real and reflective of the state of the economy. But now, with manipulation by the Central Banks around the globe, markets are driven higher by cheaply printed money rather than genuine growth. Read More

[ Click Here to Read More ]
The Fed really doesn’t have a plan to get out of the mess it’s in (a mess of its own creation) and is pretty much just playing for time, trying to delay the inevitable, painful repercussions of its failed policy.
ADAM TAGGART
Peak Prosperity
The words Uh-Oh on top of a $100 bill
8 Questions? Speak to an Account Executive at (800) 781-5308
A CLOSER LOOK from LEAR CAPITAL
Offsetting the Risk of Artificial Markets

Precious metals are tangible and real. They’re not printed out of thin air and, throughout history, have shown to hold their value. For decades investors had considered market movements as a gauge, reflective of genuine and accurate economic activities. The markets used to be thought of as 100% real and reflective of the state of the economy. When the economy is humming along, people are spending money and corporate earnings grow. They result in higher equity prices.

But now, with markets manipulated by the Central Banks around the globe through Zero Interest Rate Policy (ZIRP) and massive stimulus packages (QE), they no longer represent an accurate picture of the economic activities as they once did. And, markets no longer reflect the health of the economy or consumers. In short, markets have become artificial. Many top Wall Street experts have warned investors that markets are still in “bubble territory of historic proportion” and are ready to burst due to these market manipulations.

They’re driven higher by cheaply printed money rather than genuine growth. In November 2008, following the collapse of Lehman Brothers, the Federal Reserve began Quantitative Easing (QE). They simply printed $600 billion dollars to purchase longer-term securities from the open market in an effort to encourage lending and investment.

Within months, QE1 was expanded to $1.5 trillion worth of mortgage-backed securities and U.S. Treasuries. By November 2010, the Fed announced QE2, followed by QE3 in September 2012. As the Fed continued printing money and purchasing assets, stocks soared, the economy began a slow recovery, and optimism among investors began to rise. Encouraged by artificially low interest rates, corporations began stock buybacks. By the end of 2019 however, Goldman Sachs warned that stock buybacks would plummet, which could jeopardize investors with lower equity prices.

It was the combination of QE and stock buybacks that contributed to the birth of our artificially overvalued markets. Generally, investors believe stocks rise because earnings are growing, and the economy is strong. That’s no longer the case. When stocks are bought with printed and cheaply borrowed money, that creates an illusion of wealth, not real wealth, what economists refer to as a ‘bubble’ that can burst at any time.

Throughout history, for 5,000 years, precious metals have been considered tangible hard money. Unlike paper money created out of thin air, Central Banks can’t print gold and silver at their will and without any accountability. This is precisely why many governments such as Russia and China, to name a few, have been replacing their massive U.S. Dollar reserve with gold in recent years, to protect their governments’ solvency as the Fed continues to flood the markets with more and more dollars.

Isn’t it time for you to diversify a portion of your wealth with a time-tested currency like gold and silver?

Close
A CLOSER LOOK from LEAR CAPITAL
Higher Interest Rates and Bank Failures

The collapse of Silicon Valley Bank demonstrates that the Fed’s aggressive interest rate regime can destabilize formerly stable institutions. Investors should be particularly concerned about commercial real estate, with over $60 billion in fixed-rate loans requiring refinancing at higher interest rates, and more than $140 billion in floating-rate commercial mortgage-backed securities maturing in the next two years.

Silicon Valley Bank may not be the only bank facing significant losses on its bond portfolio as interest rates rise, indicating a potentially ominous situation. As investors become aware of these risks, they may turn their focus to the next vulnerable bank facing interest and credit risks, creating a ripple effect.

When a bank fails, it means that it is unable to meet its obligations to depositors and creditors, such as paying out customer deposits or repaying loans. This can lead to a run on the bank, where depositors rush to withdraw their funds, which can further exacerbate the bank’s financial problems.

In some cases, the government may intervene to bail out or rescue failing banks to prevent a wider economic crisis or financial panic. However, in other cases, banks may be allowed to fail, which can result in significant losses for depositors and investors.

Is this a one-off, or will there be contagion to follow? No one knows.

In the meantime, you might be thinking it would be good to own some tangible assets within arm’s reach during times of economic and financial uncertainty. Owning physical precious metals allows investors to have access to their money when a bank shuts their door due to insolvency.

Close
04

Higher Interest Rates and
Bank Failures

Regulators shut down Silicon Valley Bank in March 2023, which was the largest bank failure since 2008. The Federal Reserve’s decision to hike interest rates seven times in 2022 resulted in the bank being forced to sell its loan portfolio at a substantial loss. What else can these rate hikes lead to? Read More

[ Click Here to Read More ]
The risk of failure and deposit losses here is that the next, least well-capitalized bank faces a run and fails, and the dominoes continue to fall,
BILL ACKMAN
Billionaire Hedge Fund Manager
Stack of black dominoes
Questions? Speak to an Account Executive at (800) 781-5308 11
A CLOSER LOOK from LEAR CAPITAL
Loss Of Privacy in a Cashless Society

Digital blips are much easier for politicians and bureaucrats to create from thin air — since they ARE thin air! This throws all remaining pretense of fiscal responsibility — and government restraint — out the window.

What are the implications for you and your savings? Cash is disappearing. According to the USDEBTCLOCK.ORG, since 2000, physical cash has dropped 76% from $3.5 billion to just $840 million today. That’s barely enough for every person in the U.S. to have just $2.50 in their pocket. That means if you have $25 in your pocket right now, 9 other people have zero.

They are destroying our currency in more ways than one: Debit Cards, Gift Cards, Apple Wallet, Direct Deposit, PayPal, Stripe, Venmo, Zelle, Google Pay, Square, etc. These are all systems to track and trace — mere blips in the ether.

Because of these systems, financial privacy is no longer a sacred right. In fact, if you value financial privacy it’s seen as a red flag that you might be a criminal, and you must have something to hide. What’s coming next? Microchip implants or biometric data from your unique palm as your ID, linked to payment systems. These new monetary technologies are always adopted for convenience, evolve to widespread dependence, and are then primed to be weaponized for authoritarian control.

And what about Central Bank Digital Currencies? Some have called CBDCs “programmable currencies,” meaning they can be programmed to only purchase certain approved items, could have an expiration date and accounts can be restricted with the same ease (and user frustration) as disabling a social media account. Possibly even for the same reasons (or lack thereof).

Gold and silver may be privacy’s last haven because precious metals can’t be printed into oblivion or arbitrarily cancelled. Gold and silver are not just tangible and rare, they are fair and honest. Throughout history, kings and governments have debased and evalued currencies in pursuit of wars and personal grift. Precious metals are one of the last lines of defense against this next monetary assault.

Close
05

Loss Of Privacy in a
Cashless Society

Long anticipated, or dreaded, the cashless society seems to be more or less here. In the eternal struggle between control vs. freedom, digital ledgers enable total control, while paper changing hands is an expression of freedom. Gold and silver may be privacy’s last haven because precious metals can’t be printed into oblivion or arbitrarily cancelled. Read More

[ Click Here to Read More ]
The bottom line pretty much for any centrally-controlled digital currency, whether it’s eCash or any other CBDC, is that in the end, you still have to trust your government to respect your privacy. That’s a tall order.
AVIVAH LITAN
Gartner Research
Uncle Sam's hand holding a pair of binoculars
Questions? Speak to an Account Executive at (800) 781-5308 13

Silver

Why Add it to your Portfolio?

06

Silver is an Accessible Investment that’s Easy to Buy, Sell or Barter With

Silver has all of the intrinsic qualities that make it an ideal money and investment:
  • It has been used for thousands of years as a means of exchange and store of wealth.
  • It’s more affordable to buy than gold and, therefore, also more easily sold and bartered with.
  • It’s highly durable portable, and an easily divisible in coin form.
  • Silver coins are fungible, difficult to counterfeit and recognizable.
  • It’s increasingly difficult and expensive to mine and refine; thereby, giving it intrinsic value due to limited supply and ongoing demand.
A CLOSER LOOK from LEAR CAPITAL
Silver Has Numerous Industrial Uses

While silver has served as currency for thousands of years, it also plays a significant role in many industries. Silver is the world’s most conductive element and the most reflective metal on the planet. As a result, it plays a critical role in how we communicate, replicate, and initiate chemical reactions to advance technology and interconnectivity in the 21st century. This makes it, perhaps, one of the most vital components for modern innovation. Electronics such as LED lighting, touch screens and cellular technology require silver for every unit produced.

In less than two decades the electronics industry saw cell phones shrink from the size of a brick to a lady’s compact. The big screen TV — once big as an armoire — now hangs on the wall like a picture. And tablet computers have more power and storing capacity than an old file cabinet-sized mainframe. The common denominator among these innovations is silver.

Since 1999, the quest for green energy has been relentless. Innovations in solar technology have seen “sunlight to power efficiencies” increase nearly threefold. The cost of solar now rivals that of conventional energy. Solar is becoming the new oil. But, without silver, there would be no solar. As solar demand rises, so too should the demand for silver.

China may be about to prove it. Their historic shift to green energy is underway. With an intent to build 100 of these massive 250-acre solar farms, China alone could consume half of an entire year’s worth of silver production. And that’s just China. The state of California recently passed legislations to mandate solar energy for all new home constructions which went into effect in January 2020. In all likelihood, many other states will soon follow suit. Green energy is becoming a worldwide trend.

In addition, silver has numerous health benefits. For centuries, people have also used silver coated jugs and jars to store water and wine to ensure freshness but did not understand the science behind why silver was so effective. This wasn’t until scientists discovered that silver ions absorb oxygen, which kills bacteria. And, because it’s the least toxic metal to humans, silver is an ideal agent for water purification, bandages, dental hygiene, and even eye drops.

Industrial demand will continue needing silver. Much of this demand growth is expected to come from the solar industry. And, silver’s growing application in electronics, medicine, water purification, jewelry, even warfare, should increasingly cause stress on the low availability and lack of needed supply.

Close
07

Silver's Use In Industry

Silver is the world’s most conductive element and the most reflective metal on the planet. As a result, it plays a critical role in how we communicate, replicate, and initiate chemical reactions to advance technology, energy and interconnectivity in the 21st century. Read More
[ Click Here to Read More ]
Questions? Speak to an Account Executive at (800) 781-5308 17
08

Silver is Potentially Undervalued

Relative to the price of gold, silver may be undervalued and poised for a massive upward price correction. Precious metals traders believe there are times when it is better to own one metal over the other and that there are times when it is prudent to trade one metal for the other. Read More

[ Click Here to Read More ]
What is the AGAU Ratio?
The AGAU Ratio is the measure of the value of silver compared to gold.
Price of Silver
Price of Gold
=
AGAU Ratio
18 Questions? Speak to an Account Executive at (800) 781-5308
A CLOSER LOOK from LEAR CAPITAL
Silver is Potentially Undervalued

Relative to the price of gold, experts say silver may be undervalued and poised for a massive upward price correction. Because of its uses in industry, the price of silver is more closely tied to the economy. When economic disrupters from the pandemic subside, demand for silver should increase as well. Precious metals traders believe there are times when it is better to own one metal over the other and that there are times when it is prudent to trade one metal for the other.

To understand how this works, first take a step back in history. In 1792 our Federal Monetary System was created. Taking into consideration the weights of the variety of foreign coins in circulation, Alexander Hamilton, then Secretary of the Treasury, made recommendations for gold and silver coins of specific weights, content and purity. In studying the values set for foreign coinage, Hamilton observed that gold carried 15 times more value per the same unit of measure as did silver.

The silver to gold ratio was set at 15:1 with one ounce of gold commanding 15 ounces of silver. Since Biblical times, this ratio had been the standard based on the supply of the metals given to us by Mother Earth. But the monetary system of fair weights and measures, as established in 1792, has long since been debased by the elimination of the gold standard and the printing of paper money as well as changes in the supply of each. A dollar is no longer defined as a precise amount of gold or silver as they relate in value to each other.

Now, to analyze the price of silver relative to the price of gold, one has to convert the value of each metal to dollars first in order to visualize where each metal should be priced. In January of 1980, the value of silver to gold aligned with its historical proportion. Gold rallied to $850 an ounce and silver peaked to $54 an ounce — roughly 16:1 silver to gold. As recently as March 2011, in the midst of a so-called economic recovery, that ratio was 38:1. At the time of this writing (March 2023), the ratio is sitting even higher around 86:1. This number seems so overextended that a mean reversion seems likely, which could send silver prices soaring. It is unlikely gold will fall from present levels as it currently trades at a price near what it costs to produce. The same can be said for silver. Thus, a metals portfolio weighted heavier on the silver side, today, may seem prudent.

Close

Ready to Invest
In Silver?

Lear Capital is one of the highest rated precious metals investment dealers and offers one of the largest selections of metals in the United States.

We strive to keep our customers at the forefront of industry research and provide educational materials to help them make excellent decisions with their hard-earned investment dollars.

Access our Investor Kit to learn more about Lear Capital’s excellence in safety and security, and everything you need to know about investing in gold and silver.

Lear Capital: The Precious Metals Leader
Lear Capital Precious Metals Investor Guide Cover
NEXT:
Access the
Lear Capital
Precious Metals
Investor Guide
21
Lear Capital: The Precious Metals Leader
Lear Capital, Inc. | 1990 S. Bundy Drive, Suite 650 | Los Angeles, CA 90025

Lear Capital, Inc.’s (LCI) website and brochures and the other information it disseminates are for general educational purposes only. They are not and should not be considered investment advice. Customers may not rely on these general education/information materials for any purpose. The precious metals markets, moreover, are fluid and fast changing. Information provided herein may be superseded by intervening events.

LCI is not a financial planner, retirement specialist or investment professional. LCI does not provide legal advice, tax advice, or retirement-specific recommendations, and the information it provides does not take into account each customer’s particular economic circumstances and investment/retirement objectives. Your investment and retirement needs may be different and should be factored into any investment decision.

Each customer is responsible for doing his or her own independent research regarding any decisions he or she makes about purchasing precious metals through LCI or elsewhere.

Precious metals may appreciate, depreciate, or stay the same depending on a variety of factors. LCI cannot guarantee, and makes no representation, that precious metals will appreciate or appreciate sufficiently to make customer a profit. LCI’s precious metals prices include a spread (i.e., a margin over and above LCI’s cost for the physical precious metals). This spread covers LCI’s operating costs (such as rent, marketing and salaries) as well as LCI’s profits. LCI’s spreads are variable, but are typically in the range of 33% for Numismatic, Semi-Numismatic and IRA transactions. Customer’s precious metals must appreciate enough to cover this spread for customer to make a profit.

Past performance is no guarantee of future performance.   |   C.P.D.Reg. No T.S.11-05715
$3 Billion In Trusted Transactions
Consumer Affairs #1-Rated
Precious Metals Dealer
Celebrating 20 Years in Business

Ready to Get Started?

Speak with a professional account representative now
(800) 781-5308
Or, access more great resources from Lear Capital:
Collection of Lear Capital special report covers Video capture of an interview
Special Reports Video Library