According to CNS News, the federal government has set records for both the amount spent and the deficit it ran into, in the first nine months of the fiscal year of 2020. The government has notably spent a record high amount of $5,004,372,000,000 while it collected $2,260,069,000,000 in total taxes. The resulting deficit of $2,744,303,000,000 is thus the largest the federal government has ever run into, in the first nine months of a fiscal year. Before the year 2020, the largest deficit the federal government ever ran into, in the first nine months of its fiscal year, was in the year 2009. A significant deficit amount of $1,291,239,470,000 in the period of the Financial Crisis of 2008 through 2010, left the federal government distraught and in despair. Even though the economy recouped from the effects of the housing bubble crisis, it continues to remain a vivid memory in the minds of senior investors and business people. Reminiscing the events of the past, ten years; hence, investors fear a similar spell consuming the present-day financial markets.
The graph below shows the federal government’s spending pattern over the years. The sudden hike in the year 2020 has left the global economy in a state of shock and fear.
The past ten years have been periods of growth and prosperity. Nations have improved their global status, and the world economy has come closer, in terms of communication and trade. Economies have blossomed as businesses sprung, reaching new heights, and income and wealth disparity reduced significantly in various parts of the world, mainly India. Such extensive advancement and development have given many investors, people in business, and governments smooth sailing – they now fear running aground in the tensions and unrest of the current global crisis.
However, amid panic and confusion, gold plays its part as a haven asset to many worried and anxious investors. The rising gold prices indicate its worth and hence demand. Gold has crossed the $1,800 per ounce mark and is on its way towards reaching new highs and setting new records. Since ancient times, investing in gold and silver has proved financially beneficial to individuals. As the global pandemic takes over hearts and minds and even individual finances today, this ought to be your chance to take control. Step forward and secure your money in gold. While the prices of paper money and paper investments have proved fickle over the years, the value of gold has remained constant.
Many continue to argue the worthlessness of gold, but in times of crises, gold proves its haven status as it becomes the most demanded asset. As we observe the future of the second half of 2020, let us not be ignorant of the financial health of the global economy. Gold is here to stay, and its value will remain constant for years to come. Our financial position is in our hands, and it is for us to take action. Invest in gold and secure your future now!