You’re Probably Underinvested in Gold and Not Know It

The U.S. was founded 243 years ago, and in that time it’s amassed some $23 trillion in debt and counting. As massive as this number is, it’s still less than half what Elizabeth Warren says her government-run “Medicare-for-all” program would cost… over only 10 years.

The Massachusetts senator and presidential contender made the announcement this morning, responding to critics who’ve demanded to see some details on her proposal. According to her campaign, the price tag to provide Medicare-style health care to every American would be “just under $52 trillion.”

To put things in perspective, that’s close to one-fifth of the total wealth in the entire world, which Credit Suisse estimated to stand at $280 trillion in 2017.

The $52 trillion is just the nominal price tag. It doesn’t take into account incidental costs, such as what to do about the estimated 2 million Americans who would lose their jobs should private insurance be eliminated. And because the plan would be covered in part by tax hikes on employers, the ultra-wealthy and financial transactions, companies may be less inclined to hire, and people may be less inclined to invest.

The 2020 election is only 12 months away. Early signs point to another term for Donald Trump, according to Moody’s Analytics presidential election model, which has a near-perfect record at predicting outcomes. But impeachment risks are mounting, and Warren is leading the Democratic polls.

I urge investors to prepare for market volatility and currency devaluation. Gold and gold stocks have historically been excellent diversifiers in such times, but new research from the World Gold Council (WGC) shows that most investors are radically underexposed to the yellow metal, even when they believe otherwise.