When prices of a box of nails jumps 25 percent in one year, smart investors move to gold and other raw materials which is tied to rising inflation cost
New York, NY (PRWEB) June 15, 2008
It's estimated that nearly half of the 80 million Baby Boomers have zero saved for retirement and will rely solely on Social Security benefits, leaving middle to upper-income Americans to pick up the tab. To defend themselves, many Boomers and financially stable retirees are acquiring gold and other raw material assets before the hammer falls.
According to the 2008 Social Security Trustees Report released in March, Social Security currently owes $6.5 trillion more in benefits than it will receive in taxes.
To compensate for this funding shortage, financial experts project the government will print more money and raise taxes, increasing financial strain for many.
Can the government create a balance between those who now collect Social Security benefits they were promised, and current workers contributing to a pool that won't exist when it's their turn to receive benefits?
Informed investors aren't waiting around to find out. Instead, many wealthy Boomers are moving their portfolios into raw materials like gold, which typically rises as the dollar drops, to protect against the inflation onslaught. With the price of gold surging to levels it hasn't seen in 25 years, many investors are digging in.
"When prices of a box of nails jumps 25 percent in one year, smart investors move to gold and other raw materials which is tied to rising inflation cost," said John Halloran, a senior gold trader at CGE. "The alternative is to watch your buying power slip away with interest-bearing accounts unable to compete with inflation."
Once elected, either Republican presidential hopeful John McCain or Democratic presidential nominee Barack Obama will be charged with taking quick, decisive action to stop Social Security from sliding into more debt and tarnishing the American dream.
McCain has already referred to Social Security as a "ticking time bomb." Most experts agree that the first benefits to be cut will be those of mid to upper-income Americans. Those at high-income levels stand to lose benefits completely.
The government's current solution is to run the presses and send out payments with dollars printed out of thin air. This dilutes the dollar's buying power, affecting all citizens and creating a double-edged sword for the wealthy -- add a dash of higher taxes and this could place a heavy burden on many.
If the government doesn't repair the system soon, citizens could feel the effects as early as 2009 when the Social Security Administration is expected to be paying out more than it is taking in.
To receive a Social Security pit-falls report or information on gold investing visit http://www.certifiedgoldexchange.com or call 1-800 300-0715 to speak to a Certified Gold Exchange, Inc. investment expert. CGE is an industry-leading precious metals trading platform that educates the public on precious metals investing.