Good Morning. Today is April 15, 2023.

This is Bullion Baron, the weekly newsletter that provides the best of precious metal investing advice - making your portfolio decisions look bright as a button.

Here’s what we got for you today:

1. Nuclear War countdown

2. Gold expert pegs gold to reach $3k/oz

3. What is deposit insurance?

4. Meanwhile, at the Fed...

The Baron's Investment Forecast

Link to forecast methodology.

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Impending Nuclear War

What's happening? At the end of March, BB detailed rising war tensions. A link that that article is here. We then wrote about tensions continuing to escalate in our most recent edition. That link is here. Now, China is conducting military exercises that experts believe indicate an inevitable conflict. That story is here. 

How does this impact me? US currency is not redeemable in gold. From an investment standpoint, the USD is a major factor impacting whether gold moves up or down. As the China inches closer to WWIII, concerns over market stability will continue to escalate, making hedges, like gold, the safe way to invest.

Meanwhile, Taiwan is making it clear that any misstep will likely lead to an all out nuclear war. That story is here. 

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Gold is climbing, and it may only be the beginning.

In the middle of March, Bloomberg Intelligence senior macro strategist Mike McGlone wrote an article explaining how gold could exceed $3,000.00 per ounce. That story is here. That prediction is continuing to gain traction as gold is climbing ahead of US inflation data. That story is here. Gold crossed the key $2,000.00/oz threshold seemingly on the heels of news that US dollar yields are falling. That story is here. BB has forecasted gold to increase in every edition since our first publication, and so far, we've been correct. That evidence is here. Meanwhile, during that same period, real estate has largely declined and stocks have been volatile.

If you want to take a deep dive into gold statistics and research, and excellent link can be found here. 

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Understanding Deposit Insurance

Here at BB, we've been reporting on banks and the impacts that failures will likely have on the gold market. One of our last articles discussed that despite backing, bank uncertainty continues to remain high. That article can be found here. 

As an exercise in continuing to understand why banks have created this tremendous crunch, we would like to briefly touch on deposit insurance: why it exists, and why it's so important. An article explaining deposit insurance can be found here. If you still have questions, you are not alone. Here's another article further breaking down deposit insurance.

The logical follow-up is whether or not the US Government will increase deposit insurance limits. Some argue this is unnecessary and folks just need to open up more bank accounts. The smart money says not to trust banks and hedge your bets among secure investments like gold.

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What is the Fed doing?

Banking requirements continue to impact consumer confidence in banks. The Fed Board reduced reserve requirement ratios to zero percent effective March 26, 2020. A link to that policy can be found here. 

When we talk about reserve requirements, that is the total amount of funds a bank must have on hand each night. Typically, this is a percentage of the bank's deposits. When banks get top heavy or over extended, a run on the banks can lead to collapse as we've seen recently. A further explanation of reserve requirements can be found in this article.

Why is this important? If banks and the US dollar cannot be trusted, people will revert to secure commodities like gold. This will continue to drive the cost of gold up.

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Do you remember when?

Every week we try to add a little fun or nostalgia into your day.

Here's what we got:

"By Mennen!"

On this day in history:

1861: The American Civil War began.

1912: The RMS Titanic sank.

2013: Two bombs exploded at the finish line of the Boston Marathon.

1945: Jackie Robinson makes his MLB debut.

1953: The first issue of Playboy magazine is released, featuring Marilyn Monroe.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.