In my business, as in any field of endeavor, there are posers and there are professionals. Sometimes, knowing the difference is tough, particularly if you have limited knowledge of a subject or if you are only paying attention peripherally.
Fortunately, one of the superpowers that I’ve been blessed with in life is being able to spot the posers from the professionals. Perhaps it’s just my skeptic nature, but for me, telling the posers from the professionals comes naturally. Admittedly, this is a good trait to possess, because the only people I want in my life are true professionals.
For me, true professionals mean men and women of extraordinary knowledge, wisdom, character and proficiency at the craft of life. And as fortune would have it, I have many of these high-character colleagues in my life, and I’m immensely grateful for them.
One such colleague is my “brotha from anotha motha,” Rich Checkan from Asset Strategies International.
A West Point graduate, former U.S. Army officer, outstanding husband, father, friend and businessman, and one of the world’s leading experts on precious metals, Rich is my go-to expert when it comes to buying and owning gold and silver. Now, here I am talking about physical metals (gold, silver, etc.). When I have a question about anything precious-metals related, the first person I go to is Rich, and you should, too.
Today, I am going to let Rich take over this column with his wise views on the current status of the gold market. I got this idea because, over the past couple of days, I’ve been at the Las Vegas MoneyShow speaking with subscribers to my newsletters, and fielding questions about all things related to investing. Inevitably, the subject of gold came up, and much of what I know about gold comes to me from Rich.
So, my “brotha from anotha,” take it away…
This Ship Has Not Yet Sailed… but passengers on the golden cruise are already boarding.
By Rich Checkan, president and COO, Asset Strategies International
Everywhere you turn lately, there is another sensationalist headline giving you the reason to buy gold now…
Gold Hits New Record: Trump’s Tariffs, Inflation Fears Drive Safe Haven Surge… Forbes
Elon Musk encouraged to crack open Fort Knox and audit the $425 billion gold reserves inside — and Rand Paul wants to help… NY Post
What is happening in the gold vaults at the Bank of England?… Financial Times
Personally, I do not need a crisis to convince me to buy gold. And you should not either.
Gold should be a part of every portfolio. It is your wealth insurance… a store of purchasing power, with high liquidity, for a potential financial crisis you hope to never have.
Based upon scholarly studies done by the World Gold Council, I believe you should hold 10% of net worth in gold. The historical average for worldwide gold portfolio allocation is 2%. Currently, gold portfolio allocation is one half of one percent!
That is it.
And that is nowhere near enough.
The Bull Market with No Retail Customers
This is the third bull market of my lifetime (currently a month-and-a-half shy of six decades). The previous two bull markets were 1971 through 1980 and 2001 through 2011.
This current bull market is different from the other two.
Last year, there were 39 new all-time highs for the gold price in U.S. dollar terms as gold appreciated 27% for the year.
A month and a half into 2025, gold is up 11%. All that buying is coming from two sources…
1) To a lesser extent, there is Chinese retail buying. China’s economy is in bad shape, and retail investors there are seeking gold as a safe haven.
2) Most importantly, central banks worldwide are buying gold like it is going out of style. Central banks have been net buyers of gold for the past 15 years. But in the last three years, the buying has been at a record-setting pace.
Central banks bought more gold in 2022 than they had in any year, going back half a century. And the next closest year was not even close. Then, they did it again in 2023. And they did it again in 2024.
They are buying to protect against inflation, hedge against worldwide crisis and to shed dollar reserves in favor of gold due to the U.S. government’s policy of weaponizing the U.S. dollar.
Yet… investors in North America are not buying gold. They are selling it.
How do we know this?
Three Clear Signs of Retail Gold Selling
Once someone hears I am a gold dealer, the next statement is pretty much guaranteed of late… “With gold making new all-time highs, you guys must be making money hand over fist.”
Nobody can fathom a bull market without retail buying, but that is exactly what we have right now. Here is how we know…
First, we talk to other retail and wholesale dealers… as well as our own clients. None of the dealers are selling. They are all buying back from clients who are trying to make ends meet in a terrible economy.
Salaries have not kept up with consumer prices. People cannot take money out of their homes through a refi because that would raise their mortgage rates from 3% to 8%.
They next turned to credit cards to bridge the gap between income and outgo. Credit card debt in the I.O.U.S.A. is now at $1.2 trillion with an average interest rate of over 20%.
Next, clients turned to selling the most liquid assets they had… gold and silver. How do we know? Simple. They told us as they sold it back to us.
Second, premiums are miniscule. The price you pay above the spot price for gold and silver bars and coins has dropped through the floorboards. When retail demand is through the roof, premiums surge. They do not disintegrate.
The premium for American Gold Eagle coins, the most popular gold coins in the world, are almost non-existent right now. You can buy Gold Eagles for less than you could in my nearly 30 years in this industry.
Dealers are flush with inventory, and they are almost giving coins and bars away.
Third, the Gold/Silver Ratio has remained near 94 years. The number of ounces of silver it takes to buy an ounce of gold should be coming down as retail investors buy both gold and silver.
Silver is a smaller capitalized market. The same dollar spent in the silver market has a bigger impact than the one spent in the gold market. It is like tossing a rock into a puddle (the silver market) versus a lake (the gold market).
The relative splash is much larger in the silver market.
But retail investors are not buying. Central banks are doing the buying… and they do not buy silver.
Wait and See
In the short term, investors are taking a wait-and-see attitude. They want to see what impact President Trump and his policies will have on the markets.
They are making a mistake.
This well-established bull market (thanks to the central banks) is still in its infancy. Retail investors are on the sidelines, and we are nowhere near the late stages of a gold bull market. In fact, there is still plenty of time and price appreciation potential ahead. And the indicators we expect to see when the bull market turns bear are nowhere to be found…
Duration: The bull market should last a minimum of a decade.
Price: Gold is expected to reach two to three times the previous bull market high.
Interest rates: Rates should be high single-digit or low double-digit levels.
The U.S. dollar: Clear strength and expect future appreciation is what the dollar should exude.
Sentiment: Everyone should be talking about how much money they are making in gold and silver.
Gold/Silver Ratio (GSR): The number of ounces of silver it takes to buy an ounce of gold should be steadily moving toward 35 to 50.
Geopolitical stability: Is peace permeating our world?
Social stability: Is there domestic peace and harmony right now?
No… no… no… no… no… no… no… and no.
None of these indicators are firing. Therefore, there is no reason to believe the bull market in gold and silver is anywhere near its end. At this time, in this market, it is the buyer who will be rewarded and the seller who will be filled with regret.
What To Do?
If you agree, let me know. My team and I would be happy to help you develop a plan to enter this gold and silver bull market to protect your future purchasing power.
Call us, toll free, at (800) 831-0007 or email us at infoasi@assetstrategies.com.
Let us help you Keep What’s Yours!
–Rich Checkan
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What’s Your Favorite Colour, Baby?
What’s your favorite colour, baby?
Living colour
Is it red?
That’s what I said
Is it gold?
You got me sold
–Living Colour, “What’s Your Favorite Colour?”
We’ve talked a lot about the yellow metal in this issue, and rightly so, as it’s an asset class one must own. But did you also know that my favorite color also happens to be gold? I mean, I love black, and I even love pink, but gold is for the honey — and in all sorts of ways that make life sweet.
Wisdom about money, investing and life can be found anywhere. If you have a good quote that you’d like me to share with your fellow readers, send it to me, along with any comments, questions and suggestions you have about my newsletters, seminars or anything else. Click here to ask Jim.
In the name of the best within us,
Jim Woods
