(Mises)—Most economic analysts predict that the US is about to enter into a cyclical recession. Even Austrian School economists (like me) agree. The big question is, “What will government do?” Will it finally stop its fruitless interventions, such as trying to drive down the interest rate via inflation in the face of unprecedented budget deficits?
Look to Past Actions
Tom Fitton, CEO of Judicial Watch, answered this question (regarding another matter) during a Q&A session at the annual banquet of the Conservative Caucus of Delaware. His answer was simplicity itself and should have been obvious to us all. He said that if we want to predict what a person will do, just look at what he did previously under similar circumstances. People really don’t change much. In fact, regarding economic philosophy, my experience has been that it is very, very difficult to entice someone even to consider an alternative.
That is why the Fed has been itching to find any reason whatsoever to lower interest rates. A few weeks ago, the Fed convinced itself and its Keynesian admirers that price inflation had moderated to below its arbitrary target of two percent, which it felt justified lowering the Fed Funds rate by a half a percentage point. Of course, attempting to goose the economy before an election had nothing to do with it. Oh, no. And if you believe this, I have a bridge in Brooklyn I’ll sell you…cheap!
Why Don’t People Change?
A bigger question arises: why continue to do the same thing that caused all the trouble in the first place? Don’t people learn? Don’t they take a good hard look at the never-ending booms and busts and ask themselves why this keeps happening? That answer is more difficult, but I believe it has to do with human nature. No one ever wants to admit that he might be wrong.
All the governments of the Western bloc are wedded to Keynesian economics that itself is rooted in the Great Depression of the 1930’s. Against all evidence and completely ignoring Say’s Law of Markets, in his magnum opus The General Theory of Employment, Interest, and Money, John Maynard Keynes posited that overproduction had caused an unstoppable deflationary price spiral and that the solution was to increase aggregate demand through government spending. This was a godsend to free-spending politicians, who previously had been encouraged—correctly, by the way—to cut government spending in the face of a recession in order to free capital to revive the wealth-generating private sector. The evidence of the rightness of this policy, in addition to its logical correctness, was the post-World War I Wilson-Harding depression that was over in about a year and a half. The government actually cut spending in order to wash out capital-consuming parasites that always emerge during war economies. Mark Thornton has this statement in his 2018 book The Skyscraper Curse: And How Austrian Economists Predicted Every Major Economic Crises of the Last Century:
The alternative approach to business cycle contractions is espoused by the classical economists, the Austrian-school economists, and the real business cycle theorists. This “do nothing” approach involves shrinking government and balancing the budget, expanding resources in the private sector, and a nonexpansionary monetary policy. This was employed by Presidents Woodrow Wilson and Warren G. Harding during the fifteen-month-long depression of 1920–21. This period was one of the most severely deflationary in US history, and yet it is hardly mentioned in history textbooks.
But no one, especially those in government and their politically-connected cronies, will entertain the idea of sound money and reduced government spending today. Oh, no! We are living in the age of “countercyclical spending” in which the cart goes before the horse. In fact, our economic system is full of mandatory spending in the face of recession. All manner of welfare programs have been passed to protect workers and businesses from being forced to adjust to the realities of the market. For example, politicians are lauded for extending unemployment benefits beyond previously-established maximums. But here’s the rub—the economy cannot recover unless people and businesses are willing to change. Working in industries that the market desires at a price the market is willing to pay is the only path to economic recovery. Not working at all and refusing to change business models perpetuates and deepens the recession.
Conclusion
So, what is the answer? It is obvious. The people who have been given the power to enact Keynesian policy must be removed from positions of power. They are not going to change. They and their Keynesian policies must be sent to the dustbin of history. It will not be easy. But it’s either adapt to new market realities or suffer an economic collapse unprecedented in US history.
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Why Bullion Beats Numismatics and Collectible for Your Safe or IRA
Precious metals continue to attract Americans seeking reliable ways to protect their wealth amid inflation, geopolitical risks, and stock market swings. Whether stored in a home safe or held inside a self-directed IRA, physical gold and silver deliver tangible value that paper or digital assets often lack. Yet investors must choose carefully between bullion—pure bars and coins valued mainly for their metal content—and numismatics or collectibles, where rarity, history, and collector demand heavily influence pricing.
Advisor Bullion serves as a dependable source for straightforward, high-quality bullion. The company specializes in physical gold, silver, platinum, and palladium, emphasizing transparent pricing and products that deliver maximum metal content for every dollar spent. This approach makes it ideal for both personal holdings and retirement accounts.
Bullion consists of refined precious metals in standard forms like one-ounce coins (American Gold Eagles, Silver Eagles, Canadian Maple Leafs) or bars. Their value tracks closely to the current spot price of the metal. A typical gold bullion coin trades near the live gold spot price plus a small premium. This structure keeps costs clear and predictable.
Numismatic coins and collectibles add substantial value from factors such as age, rarity, minting errors, or historical significance. A pre-1933 U.S. gold coin or graded proof piece can carry premiums of 30%, 50%, or even 200% above melt value. While this appeals to hobbyists, it creates complexity. Pricing depends on subjective grading, collector trends, and auction results instead of daily spot prices.
For investors focused on wealth preservation and retirement security rather than building a collection, bullion often delivers better results.
Lower Costs and Better Liquidity for Home Storage
When keeping metals in a home safe or private vault, liquidity and efficiency count. Bullion offers clear benefits:
- You acquire more actual gold or silver per dollar invested. Numismatics divert a large share of your money into rarity premiums and massive sales commission, reducing your metal exposure.
- Selling bullion involves tight bid-ask spreads, so you recover nearly full spot value with minimal fees. Collectibles require finding the right buyer and may sell at a discount if demand for that specific item weakens.
- Bullion prices remain transparent and update with global spot markets. You can track gold near current levels or silver accordingly and know exactly where your holdings stand. Numismatic values are priced by the Gold IRA companies with hefty margins applied.
- Standardized coins and bars store efficiently and divide easily for partial sales. Rare coins often need protective slabs and controlled conditions, adding hassle and expense.
- Bullion enjoys worldwide acceptance. A 1-oz Gold Maple Leaf or Silver Eagle sells quickly to dealers anywhere. Niche numismatic pieces may appeal only to limited buyers, slowing liquidation when speed matters.
In times when quick access to value becomes important, bullion’s simplicity stands out.
Stronger Fit for Precious Metals IRAs
Precious metals IRAs continue gaining traction as investors diversify retirement portfolios beyond stocks and bonds. IRS rules permit certain bullion products in self-directed IRAs if they meet purity standards (.995 fine for gold, .999 for silver) and are held by an approved custodian. Eligible items include American Gold and Silver Eagles plus many generic bars and rounds from recognized mints.
Numismatic and most collectible coins generally face heavy scrutiny from custodians due to valuation disputes and elevated markups. These higher premiums mean less actual metal ends up working inside the account.
Bullion avoids these issues. Its value links directly to verifiable spot prices, which simplifies reporting and lowers the risk of regulatory challenges. More of your IRA contribution purchases real metal instead of dealer profits or speculative upside. Over time, owning additional ounces that appreciate with the metal itself can create meaningful outperformance compared with high-premium alternatives that deliver fewer ounces.
Regulatory guidance from the CFTC and state securities offices repeatedly cautions against aggressive sales of expensive numismatics or “semi-numismatic” coins for IRAs. For retirement planning, transparent bullion from established providers reduces risk and aligns better with long-term goals.
How to Get Started with Bullion
Begin by clarifying your goals. Are you protecting savings in a safe, or moving part of a retirement account into a precious metals IRA? Focus on the number of ounces you can acquire at current prices rather than chasing marked-up collectibles.
Diversify sensibly: use gold for core preservation and silver for its blend of industrial and monetary qualities. Mix coins for easier divisibility with bars for lower per-ounce costs on larger buys. Arrange secure storage—whether at home with proper insurance or through professional facilities.
As economic uncertainties linger and faith in conventional assets erodes, bullion continues proving its worth as a dependable store of value. Its direct approach avoids the hype that sometimes surrounds collectible markets and keeps the focus on the metal itself.
For investors prepared to strengthen their portfolios, Advisor Bullion supplies the expertise and selection needed to acquire high-quality bullion efficiently. Whether building personal holdings or integrating metals into an IRA, their emphasis on transparent, investment-grade products helps secure more ounces today that support greater financial security tomorrow. In a complicated financial landscape, bullion’s clarity and reliability make it the smarter foundation for protecting what matters most.
