Page 36 – Blanchard and Company

Special Report Part 2: What the Biden Tax Plan Means for You

Posted on February 25, 2021June 6, 2025 by Blanchard Admin

Say Goodbye to Retirement Account Deductions

There are potentially sweeping tax law reforms coming.

These adjustments will primarily impact high-income Americans. There is a short window of time where you can prepare for the coming changes. Notably, you can use increased allocations in gold bullion and rare coins to protect and preserve your family’s wealth.

A significant change will be the elimination of the retirement account deduction.

If you currently enjoy deducting up to $26,000 to your 401 (k) if you are 50 or older, say goodbye to that sweet deduction.

Under the proposed Biden tax plan that deduction would disappear – and be replaced with a tax credit.

The Biden plan reduces tax benefits for high-income workers and increases benefits for low and middle income workers.

Current Law

Biden Tax Proposal

401(k) and retirement accounts

Contributions are tax-deductible. Growth is tax-deferred

Create a 26% flat tax credit. Let unpaid caregivers make “catch-up” contributions to retirement accounts. Give tax credits to small businesses to offset cost of creating plan.

Give all workers without a pension or 401(k) access to “auto 401(k)”

Corporate Tax Rates Would Climb

Under current law, corporations pay a 21% tax rate
The Biden tax proposal would increase the corporate tax rate to 28%. (That’s still below the pre-2017 Tax Cut and Jobs Act level of a 35% corporate tax rate.)

Taken together with the changes we discussed in part one – these are significant proposed changes to tax law. Fortunately, there are actions you can take to minimize the impact to your income and wealth.

Gold: An Excellent Vehicle for Private Wealth Preservation

As we’ve discussed, now is the time to take action and re-position some holdings to get in front of these proposed tax changes.

Gold bullion and rare coins have long been touted by trust attorneys as an efficient and discreet method of transferring wealth from one generation to another.

This bears repeating:

With the proposed estate tax level falling from $11.7 million to $3.5 million – that means many more families will be forced to pay the 45% tax rate on a larger amount of your estate. That significantly reduces the wealth you can give to your heirs – as the government will take a much larger portion of your family’s money.

Current Action in the Gold Market

Call it the calm before the storm. After hitting a new all-time record high last year, gold market action turned consolidative recently.

It’s easy to say: “Buy low, sell high.” Yet so many investors do the exact opposite. Many investors wait to buy until a market is near its all-time highs! That’s buying high, not buying low.

Gold still remains in the midst of a long-term, historic uptrend.
In fact, the price of gold climbed 53% from January 2019 through January 2021. That’s right. In just two years, gold climbed 53%!

For long-term market up-trends – current activity is normal behavior. Markets go up, they correct and consolidation, then they go up more.

The secret to long-term investing success? Buy on a pullback in an uptrend.

The recent drifting action in the gold price is just that – it offers long-term precious metals buyers an excellent buying opportunity.

Goldman Sachs, Citigroup, and UBS all forecast additional gains for gold and silver prices in 2021, which creates an ideal buying situation now.

If you are worried about losing money to new taxes – take action now to protect your wealth and income and you’ll also be able to generate new profit from buying gold at a time when the price is low.

If you or your family could be impacted by the proposed shift in these tax laws, don’t wait. Contact a Blanchard portfolio manager for a confidential portfolio review – and to learn strategies to maximize your wealth transfer.

Current action in the gold market offers a perfect long-term buying opportunity before these tax proposals become reality.

You can’t control what tax legislation passes in Congress.

You can control how you prepare and position your financial picture to limit the impact of new taxes.

We are here to help.

If you missed it, take a look at part one of this series here.

Want to read more? Subscribe to the Blanchard Newsletter and get our tales from the vault, our favorite stories from around the world and the latest tangible assets news delivered to your inbox weekly.

Forecasting a Commodity Super Cycle

Posted on February 24, 2021June 6, 2025 by Blanchard Admin

In recent months speculative investments have commanded the headlines. Bitcoin, GameStop, EV manufacturers, and SPACs have all garnered interest from investors. Many of these investments present the opportunity for high returns, but with considerable risk and volatility. As the fervor surrounding these investments has grown, investors seem to have forgotten older, more traditional investments like commodities. Today, they are starting to remember.

Some are beginning to forecast a commodities super cycle which is a long-term period of rising demand for a diverse group of commodities. Analysts like those at JPMorgan believe there are several catalysts for this super cycle. The first is renewed activity in infrastructure. Construction is likely to resume as more countries emerge from the pandemic. Moreover, Biden has made clear his plans to initiate an aggressive infrastructure plan. As a result, demand for metals used in these projects is expected to rise.

Second, the EV boom has resulted in surging demand for an array of commodities needed in the production of batteries. Lithium, nickel, and cobalt are just a few examples of the resources that will be needed to realize the renewable energy goals of the future. EV production is a powerful part of the commodity super cycle thesis because demand for these vehicles is high across the globe. In 2010 there were approximately 17,000 electric cars on the road globally. As of 2019 there were 7.2 million electric cars on the street according to the IEA.

The implications of a commodity super cycle are massive. In the last 100 years we have seen four commodity super cycles. Many of these cycles persist for several years. The last cycle reached its peak in 2008 after more than a decade of expansion.

Today, factors like lower borrowing costs, increasing inflation, a weakening US dollar, and even environmental policies are setting the stage for surging commodity prices.

The possibility of a super cycle has major implications for several kinds of investors because it would mean rising prices for oil, livestock, agriculture products, and of course base metals including gold and silver.

The question most investors have now is if the boom will be real. For researchers at Goldman Sachs things are looking very real indeed. “Looking at the 2020s, we believe that similar structural forces to those which drove commodities in the 2000s could be at play,” they explain. They have gone even further to project 30% growth for commodities as a whole in 2021.

While the popular, speculative investments of the moment are enticing few of them offer the long-term growth prospects present in a commodity super cycle. If the projections and forecasts come to fruition then commodity investors could benefit from price appreciation over a period of years rather than months. As with any high-return investment a commodity super cycle play requires a proactive approach in which assets are purchased early in the timeline so compounding can occur over the years.

1807 Draped Bust Quarter Eagle

Posted on February 16, 2021June 6, 2025 by Blanchard Admin

In many ways, the first dollar coin issued by the U.S. – the Flowing Hair Dollar – was a failure. The uninspired design was criticized by many and, as a result, the coin was only minted in 1794 and 1795. When the U.S. Mint prepared to replace the design with something new they were determined to get it right. What followed was the creation of the Draped Bust coin.

The designers had certain parameters when conceptualizing the look of the coin. The design would need to include an eagle, the word “Liberty,” stars, and the words “United States of America.” The man behind the imagery of the coin was Robert Scot, the Chief Engraver of the United States Mint from 1793 to 1823. His original training was in watch making during his early years in Scotland. His work also included scientific illustrations like the 25 copper plates he engraved for a 1788 reprint of Natural Philosophy, a book by English chemist William Nicholson. The book explored the physical world and was, in some ways, a precursor to the more rigorous and scientific pursuit of biology and physics.

Scot later moved to Fredericksburg, Virginia where he began designing the look of that state’s currency. During this part of his career, he worked under then Virginia Governor Thomas Jefferson. Scot moved to Philadelphia shortly after Benedict Arnold and British soldiers burned Richmond. From this point forward his career and indelible mark on U.S. history took shape and by 1782 Scot was selected as the engraver for the Great Seal of the United States.

By 1796, Congress was prepared to move forward with a new design. The obverse would feature the profile of Ms. Liberty. Though no one is certain about the reference used for the woman, some believe that Scot drew inspiration from Ann Willing Bingham, a Philadelphia socialite. This may be due to the fact that she had a correspondence with Thomas Jefferson, who previously worked with Scot. Additionally, Bingham was a vocal advocate for greater inclusion of women in politics, therefore it is fitting for her to be represented on ubiquitous symbol of the U.S political identity.

The reverse side of the coin shows the traditional bald eagle image with arrows in one claw and an olive branch in the other. There are thirteen stars above the shielded eagle and a ribbon reading “E. Pluribus Unum.” In time, the national motto “In God We Trust” would replaced these words.

Due to the technical limitations of the time the coin occasionally contains variations and errors. In some instances the sizes of the letters varies, or overstrikes create differing reliefs. There are even error coins that feature only 15 stars despite the existence of 16 states during the time of minting.

Today the coin is a representation of how beautiful U.S. currency can be when a skilled designer and engraver meets the high standards of the American people.

Special Report: What the Biden Tax Plan Means for You

Posted on February 11, 2021June 6, 2025 by Blanchard Admin

[Editor’s note: It’s hard to know what to believe in today’s environment. From cable news networks, to talk radio show to internet news sites – where do you get the facts?

That’s why we did the research. And that’s why we are delivering tax facts in this special report – about what President Biden’s proposed tax changes could mean for you. Using sources like the Internal Revenue Service and the Tax Foundation, the nation’s leading independent tax policy nonprofit, we drilled down on key proposals and outline here how they could impact your taxes, deductions and implications for passing wealth from one generation to the next.

These are just proposals and official legislation has not yet been submitted to Congress. Yet, we wanted to provide you with the information you need now – so you can prepare your finances ahead of potential tax law changes.

If these proposals become law it is valuable to understand how it will affect you and why it may be important to increase your allocation to gold now before the tax plan passes.]

Democrats Control the White House and Congress

What could Democratic control mean for your taxes? If you are nervous, you aren’t alone.

There’s good reason for concern. In general, President Biden’s tax proposals will raise taxes on high-income earners, remove long-standing deductions and tax a larger percentage of generational wealth transfer.

If all these tax proposals become law, it would raise $3.3 trillion over the next decade, according to the Tax Foundation.

How much of that will come from you?

Here’s what we found.

It’s True, High Earners Will Pay More Income Tax

Are you married, filing jointly with income over $400,000? It’s time to prepare and reposition your finances now. The Biden proposal is coming for you. Your tax bracket jumps from 32% to 39.6% under the proposed increase.

Key changes that lie ahead if tax proposals are passed:

	Current Law	Biden Proposal
Income Tax Rates	37% Top marginal tax rate	Increase top tax rate to 39.6%. This move would return the top tax rate to the level seen before the 2017 Tax Cuts and Jobs Act.
Long Term Capital Gains	Hold assets over a year: 20%	For taxpayers with income above $1 million – increase to 39.6%
Itemized deductions	Various	Limit deductions for taxpayers earning over $400,000 to 28% AGI
Retirement Plan deductions	They are deductible with limits.	Eliminate deductions. Replace with a 26% flat tax credit.
Payroll Tax (that funds the Social Security Trust Fund)	6.2% payroll tax on income up to $137,700. Then $0.	Adds Payroll tax on people with income over $400,000 (wages between $137,700 and $400,000 will not be taxed). This creates the so-called “donut hole” of income that is not taxed.

It’s True, Wealthy Heirs Will Pay More in Taxes

There are many proposed changes for the estate tax.

Biden’s plan attacks and increases the estate tax in two ways.

It increases the estate tax rate from 40% to 45%.
It lowers the size of the estate that can be taxed from $11.7 million to $3.5 million.

Let’s walk through this a bit more – if this applies to you – this is a significant change.

The current estate tax level is 40%. Biden’s proposal will raise the estate tax to 45%.

The Biden tax proposal includes a lowering of the estate tax exclusion level.

Current Law

If you currently leave $11.7 million or less to an heir – it is not subject to the estate tax.
If you bequeath over $11.7 million – it would be taxed at 40% under current law.

Under the Biden tax proposal – this exclusion amount will revert back to pre-2017 Tax Cut and Jobs Act levels to $3.5 million.

This means: if you leave an estate worth over $3.5 million to your heirs – it would be taxed at a new higher 45% estate tax rate – if this proposal becomes law.

Many families will be affected by the proposed change to the estate tax.

It’s time to take action now to preserve and protect your wealth.

We can help you with that. There are more details below on what you can do now if this could affect your family.

Basis Step-Up at Death. Currently – heirs pay NO capital gains tax. Under the Biden tax proposal – this is eliminated. Heirs would pay the capital gains tax. (A step-up in basis is the readjustment of the value of an appreciated asset for tax purposes upon inheritance, according to Investopedia).

How Gold Can Protect Your Wealth

Are you concerned?

Now is the time to take action and re-position some holdings to get in front of these proposed tax changes.

Gold bullion and rare coins have long been touted by trust attorneys as an efficient and discreet method of transferring wealth from one generation to another.

With the proposed estate tax level falling from $11.7 million to $3.5 million – that means many more families will be forced to pay the 45% tax rate. That significantly reduces the wealth you can give to your heirs – as the government will take a much larger portion of your family’s money.

Gold is an excellent vehicle for the private preservation of wealth.

If you or your family could be impacted by the proposed shift in the estate tax law, don’t wait. Contact a Blanchard portfolio manager for a confidential portfolio review – and to learn strategies to maximize your wealth transfer.

Coming next: Part two of this Tax series will discuss the elimination of key deductions you may rely on now.

What Does it Cost to Win in the Market Today?

Posted on February 9, 2021June 6, 2025 by Blanchard Admin

In recent months retail investors have learned that the cost of winning is higher than it has ever been. The battle between hedge funds and retail investors has taken a toll on both sides costing billions and leaving many exhausted. By the end of the week each group was left distraught.

The fervor around GameStop offers many lessons. The most important of these lessons is this: things are not what they seem. Savvy investors who discovered this once undervalued stock have learned that there are far more forces at work in the market than previously realized. That is, the hedge funds have more weapons in their arsenal and more allies by their side than ever before. As a result, the latest chapter of the GameStop saga has the retail investors on unsure footing and the hedge funds battling catastrophic losses.

This story underscores the fact that the equities market is more complex than many ordinary investors realize. Fundamentals, once the key criteria for successful stock selection, have fallen out of favor as more investors seek momentum plays or opportunities to ride a wave of broad based investor optimism. Investing is a game that has only become more complex as the cast of characters grows to include social media, pundits, mainstream media, short sellers, and opportunistic hedge funds.

This tangle might explain why seasoned investors so often seek the relative stability of precious metals. Gold and silver offer a grounding force in a portfolio because they are often free from the kind of manipulation seen in equities and bonds.

Consider the example of counterparty risk. This is the risk that a person involved in a transaction may fail to deliver on their end of the agreement. Counterparty risk becomes a problem for bond investors when an issuer defaults and is unable to meet their obligations. Equity investors can also suffer from counterparty risk when the managers of the company fail to act in the best interest of the investors.

Gold is free from counterparty risk because it is an asset that does not require a group of people or board of directors to satisfy debt payments or to generate profits. The threat of counterparty risk to investors seems to be escalating today because managers of public companies face the distractions of dealing with competing groups of investors seeking ways to force share prices down or drive share prices up.

All of these new voices have become a roaring crowd that makes it more difficult for investors to single out the information needed to make a smart long-term decision. In contrast the value of precious metals are not tied to the ethos of a flashy CEO. They are not tied to the esoteric and sometimes underhanded strategies of monolithic hedge funds. As a universal asset recognized throughout the globe gold and silver have a value that is measured and understood by all nations rather than the whims of a marketplace characterized by a battle between retail investors and professional traders.

Simple solutions are best.

Blanchard Senior Portfolio Manager Separates Silver Facts from Fiction

Posted on February 3, 2021June 6, 2025 by Blanchard Admin — 1 Comment

David Zanca, Senior Portfolio Manager, holding slabbed coin with Blanchard signage in background

The investing world spotlight shifted to silver this week. The same group of Internet day traders that drove GameStop dramatically higher in January turned their focus to silver. While the online message boards touted silver ETFs at first, the news triggered a rush into the physical silver market. The U.S. Mint’s silver coin sales jumped 24% to 4.775 million ounces last month – that was the highest for a January since 2017. Several U.S. major bullion dealers ran out of silver on the last day of January. The buying frenzy drove the price of silver to an 8-year high and unleashed massive market volatility.

As widespread commentary about silver – some true and some not true – circulated on websites, we spoke with David Zanca, a 25-year veteran of the precious metals industry and Senior Portfolio Manager at Blanchard and Company, to gain the inside scoop on recent silver market developments.

Editor: What type of misinformation are you seeing about the recent silver market volatility?

David Zanca: The most misleading statement is that there is no more silver available for investment in the United States. That’s not true.

I see dealers quoted stating that their demand over this past weekend was 10 times normal. That says nothing because their normal weekend demand could only be 10 ounces. It’s misleading.

Yes, there is a tremendous increase in a physical silver demand. But, do we know that it is 10 times? I don’t know.

Editor: What are you seeing in terms of silver pricing during the recent surge?

David Zanca: Some folks that are supposed to be legitimate firms are charging $12 and 15 over the spot price for silver products that can be had for only $6 over the spot price.

Editor: Let’s dive into what some of those terms mean in a minute. But, first, how are they getting away with that?

David Zanca: It’s because of the hype. There are many new, inexperienced and very excited investors – but they don’t know where to turn.

Editor: What drove silver prices to an 8-year high in the past few days?

David Zanca: The sleeping giant was awakened. The general public is concerned – and some are even fearful or angry – that the U.S. government is continuing to print money.

People work very hard to earn their money. Yet, the government devalues their hard work and their dollars by printing more money.

It’s not fair to anyone and especially to the average guy or the middle class.

Fear and anger are powerful motivators.

A new wave of investors is learning they can easily reduce their exposure to the U.S. dollar system – by trading their dollars for precious metals. We’ve seen the same phenomenon in bitcoin. Yet, metals are different because you can see it, you can hold it in your hands – gold and silver are tangible, physical assets. And, unlike the exploding paper money supply, precious metals have a very slowly increasing supply.

Editor: What was the trigger for this new wave of silver buying?

David Zanca: What happened is a lot of people started talking about it – and explaining how simple it was to trade dollars for metals. The Federal Reserve created the powder keg – by continuing to print money and devalue everyone’s wealth and work. And the Internet chat boards lit the fuse.

We are seeing more new clients than I have ever seen since 1994 when I first joined the precious metals industry.

People are scared. They read and hear about all this new money the Federal Reserve is printing and they know they need to protect themselves.

Now, it’s spreading like a wildfire. It’s spreading among people – how simple it is to trade your dollars for gold and silver.

Editor: Let’s talk about how the silver physical market is priced?

David Zanca: The basis for pricing a Silver American Eagle is the paper spot market.

When investment demand increases, those investors that own physical metals are rewarded because there is a limited amount of physical silver that can be used for investment.

When demand increases, the paper spot market price and the physical market price begin to separate and widen.

For example, the paper price could just move sideways in a narrow trading range. But, if physical demand increases – the physical price will continue to climb – and that separation will become greater. That is sometimes referred to as the “premium” over spot price.

A premium is typically about $4-8 over the spot price, depending on the product.

Editor: What’s happened to silver premiums lately and why?

David Zanca: The premiums have gone up. There is a tremendous increase in demand for physical investment silver. And, that demand rewards those who own the physical metal – they can demand more for the physical than what the paper spot price is reflecting. This is why investors should own physical metals rather than any form of paper like an ETF or gold mining stock.

Editor: What is the spot and physical price now?

David Zanca: The price of a one ounce American Silver Eagle is $34.46. The silver spot price is $26.78. The premium is the difference between those two prices. (Note: Current prices at the time of publication.)

When people see the spot price going down or not moving up as fast as the physical price – that is an indication that physical demand is rapidly accelerating.

Editor: Tell me again – how has the silver premium changed in recent days? It’s shocking.

David Zanca: As I mentioned, some folks that are supposed to be legitimate firms are charging $12 and 15 over spot for product that can be had for $6.00 over this spot.

Editor: How does Blanchard handle the premium?

David Zanca: We only move premiums when our costs rise. Any rise in price is due to our underlying costs to acquire the product.

Editor: How are Blanchard’s supplies?

David Zanca: Multiple products like fractional gold are completely sold out. Quarter ounce gold is sold out. Silver supplies are tightening quickly. Some product is in a delayed delivery status. Delayed delivery is inconsequential as long as your dealer – the source you are purchasing from – will allow you to liquidate even prior to delivery. Here at Blanchard – we do that. I’m not aware of any other firm that will do that for a client.

Editor: How can a metals investor find out what the fair pricing is?

David Zanca: New investors should try to actually speak on the phone to an advisor at the firm they wish to purchase from. At Blanchard, we create long-term relationships with our clients. We educate them and let them make an informed decision as to whether they want to invest or not.

Editor: What is the most important thing for new investors to know?

David Zanca: In years past, investing in gold and silver was regarded as a niche investment. Now, buying physical gold and silver has gone totally mainstream.

Precious metals are an incredible long-term investment appropriate for everyone’s portfolio. That importance is greater now than ever because of the actions of the Federal Reserve.

Supplies of silver have been getting tight for at least a year now. The Internet movement to buy silver only lit the fuse to the powder keg that the Federal Reserve built.

Precious metals should never be viewed as a short-term investment. Buying gold and silver bullion should be viewed as a vital portion of the long-term storage of your wealth.

Editor: What’s your outlook for silver over the next few years?

David Zanca: It’s incredibly positive, based on the massive increase that is taking place in the United States paper money supply.

The sleeping giant has been awakened. We are seeing new silver buyers coming from all areas of the country, all levels of income and all levels of wealth.

Yet, this is not just new investors. We are seeing this from long-term investors and high net-worth individuals that have that same frustration and concerns. They are trading out of dollars, out of bonds, out of CDs, out of money market funds, out of stocks they’ve sold, out of land they’ve sold and buying gold and silver bullion.

Many high net-worth investors tell me that they don’t trust the stock market right now. Bonds don’t pay anything, CDs don’t pay anything. Land, well, property ownership can be complicated.

Investors are concerned about a rapid rate of inflation.

They have no vehicle to protect themselves against that inflation other than physical gold, silver and rare coins, which have proven to be one of the absolute best hedges against inflation over time.

As long as the government continues to print money – there will be this intense demand for precious metals. The gold and silver that we are placing now may likely never come back to the market.

Editor: How can a new investor reach you or another portfolio manager at Blanchard?

David Zanca: Call 1-800-880-4653.

Editor: This was an enlightening interview. Thank you for your time.

David Zanca: My pleasure.

Blanchard is the nation’s largest and most respected tangible assets investment firm. Blanchard is family owned and has served clients for over 40 years.

Blanchard has deep roots in gold’s history in America. It was in 1933 that President Franklin D. Roosevelt prohibited private U.S. citizens from owning gold. Decades later, Blanchard’s founder, Jim Blanchard, rose to prominence as a supporter of American’s right to own gold in the early 1970s. Jim Blanchard gained national attention when he arranged for a biplane to tow a banner proclaiming “Legalize Gold” over President Richard Nixon’s inauguration in January 1973. His lobbying efforts were a success and, after more than 40 years, Congress once again legalized private ownership of gold bullion effective Dec. 31, 1974.

Once the gold restrictions were lifted, Jim Blanchard founded the company in 1975 and helped build it into one of the nation’s largest and most respected tangible asset investments firms.

The Odd Couple – Monroe Half Dollar

Posted on February 2, 2021June 6, 2025 by Blanchard Admin

What do Hollywood movie studios and the foreign policy declaration by President James Monroe, known as the Monroe Doctrine, have in common?

No doubt it’s an odd pairing.

The answer is – a 1923 commemorative silver half dollar.

In the early 1920s, scandals were tarnishing the reputation of the motion picture industry. Within a span of a few months, actor Wallace Reid died from a drug overdose, director William Desmond Taylor was murdered under mysterious circumstances and “Fatty” Arbuckle was indicted for killing an actress.

The movie studios desperate to repair their image across America launched a public relations campaign. They founded a committee: the American Historical Revue and Motion Picture Historical Exposition, to tackle the project. Yet, they needed funding.

Call it creative financing?

The Exposition decided that a commemorative coin could serve them well – raising funds and also generating positive PR for the movie industry.

The committee members looked back in history 100 years and decided that the Monroe Doctrine of 1823 could make for a popular coin.

History buffs will remember this important foreign policy statement issued by President Monroe in 1823 which stated to the world in no uncertain terms that the U.S. would not tolerate European interference, control or influence in North and South America.

Thus, the idea for the Monroe Doctrine Centennial Half Dollar was born.

Ultimately, the commemorative coins were put on sale for $1 each. However, demand fell short of the total 274,077 silver coins that were minted.

Many Monroe Doctrine Centennial Half Dollars were released into circulation at face value after sales fell well short of that number – which is why collectors today will find this coin is typically offered in a circulated state.

A sculptor – Chester Beach – designed the elaborate silver coin. The obverse features the busts of Monroe and his Secretary of State in 1823, John Quincy Adams. Circling the coin are the inscriptions UNITED STATES OF AMERICA and HALF DOLLAR. On the left you will see: IN GOD WE TRUST, and on the right the date and mint mark.

Originally, the reverse was intended to be an image representing North and South America. However, instead, Beach created two female figures which were drawn in a rough approximation of the shape of each continent.

The North American figure holds a branch in her left hand in the area of northern Canada while passing a twig to South America through Central America with her right hand. The South American figure holds a cornucopia.

The coin also depicts the major ocean currents of the Atlantic and Pacific to signify the unimpeded flow of goods between the two continents thanks to the Monroe Doctrine. The inscriptions MONROE DOCTRINE CENTENNIAL and LOS ANGELES encircle the border of the reverse.

Are you curious? See the artistry of this truly unique coin here.

Regulators Are Paying Attention to Bitcoin

Posted on January 28, 2021June 6, 2025 by Blanchard Admin

You bought Bitcoin because it was private. Now you have to check a box on page one of your IRS tax forms and show the government you have holdings.

What’s next from regulators?

Well, it turns out that central banks are going to create their own digital currencies! And not use Bitcoin.

Yes it’s true.

In recent months central banks have become increasingly engaged in digital currencies. They know they run the risk of becoming irrelevant if they don’t control digital payments – so they are working to create their own.

Central banks don’t want to cede control of the digital currency world to Big Tech firms – like the Facebook offering Diem (formerly known as Libra). Here are just a few examples of how central banks are getting into the digital currency action.

Central Bank Digital Currencies (CBDC) projects are going forward all across the world. Here’s a few examples:

The Bahamas launched its CBDC, called the Sand Dollar, in late 2020. The Sand Dollar is a digital currency issued by the Bahamian central bank for use across the country via an app.
The Bank of England is creating a settlement service to support a CBDC. It awarded Accenture a $200 million contract to build out a new payments service.
The Bank of Japan appointed its top economist to oversee research on developing that nation’s CBDC.
China is testing its digital yuan. China recently gave away $3 million of its digital currency, the e-yuan, through a lottery to its citizens. “Winners will receive a so-called “red packet” via an app containing a maximum of 200 yuan of the digital currency. A hundred thousand of these red packets will be distributed,” according to a Dec. 6, 2020 CNBC article. Those who receive the digital yuan can spend it on JD.com’s online shopping platform.
Sweden is testing the e-Krona.

Don’t expect the Federal Reserve to be far behind.

Where does that leave Bitcoin?

Former Trump advisor Gary Cohn told CNBC he thinks the world will have a global cryptocurrency that is not Bitcoin.

“In my view, [Bitcoin] is not scalable, is not secure, is not decentralized, is not a currency, and remember, many central banks, starting now with the Chinese one, the Swedish, but even the eurozone, are starting to think about creating a central bank digital currency,” Nouriel Roubini, a professor of economics at NYU’s Stern School of Business said. “Once you have a central bank digital currency, every individual can use an account with the central bank to do payments.”

Legendary investor and Quantum Fund co-founder Jim Roger says if cryptocurrency succeeds in being used as money, instead of primarily for speculation, governments will intervene, making it illegal in order to stop its use.

For this reason, “I believe that the [value of] virtual currencies represented by Bitcoin will decline and eventually become zero,” Rogers said. “It is hard for us to move money without the control of the government. The government wants to know everything. Controllable electronic money will survive, and virtual currencies beyond the influence of the government will be eliminated.”

Central banks are now getting into the digital currency game. Does that spell the death knell for Bitcoin? Maybe. The experts warn that it might and Bitcoin could go to zero.

The evidence is building that if you’ve invested in Bitcoin, the time is right to liquidate, take your profits (while you still have them) and move to gold. Or, at the very least, scale down on your Bitcoin position.

You can then shift those profits into the other asset that central banks around the world continue to buy and hold – physical gold.

Gold. It’s in the midst of its own historic bull run – it’s an intrinsic store of value, a safe haven during crisis and a true hedge against the U.S. dollar and inflation.

We hope this Bitcoin article series has been useful. If you have questions, comments or would merely like to discuss this topic, please call a Blanchard portfolio manager today at 1-800-880-4653.

Part 1: Bitcoin Captures Imagination of Future Space Tourists

Part 2: Bitcoin at All Time Highs – What’s Next?

4 Lessons from 2020

Posted on January 27, 2021June 6, 2025 by Blanchard Admin

Looking back on 2020 – it was an unprecedented year in so many ways. Yet, in other ways, we saw recurring themes that we’ve seen throughout history.

Black Swan Events Can Happen Anytime

Rewind 12 month ago – back to early 2020 – the economy was strong and the stock market was climbing. Sure we’d heard about this virus in China – but we had no idea what kind of health, economic and financial carnage lay ahead.

Last year reminds us all that unexpected financial shocks can emerge at any time – without warning.

So-called Black Swan events “are characterized by their extreme rarity, severe impact, and the widespread insistence they were obvious in hindsight,” according to Investopedia.

Indeed – all those ring true for the Covid-19 crisis. Many state that world health officials have been bracing for a global pandemic for years. And, one hit last year – devastating our economy and markets for several quarters.

Did you see it coming? Most did not.

Markets Continue to Break Records

Records are meant to be broken. In 2020, we saw gold climb to a historic, new all-time record high at $2,060 an ounce in August. While gold pulled back in a consolidation phase recently – as “risk on” attitudes drive stocks higher – the long-term uptrend in gold remains intact. Many Wall Street firms see potential for another record-breaking gold to unfold again this year. And, last year’s unprecedented actions by the Federal Reserve lay the seeds for a future inflationary crisis that could well be a major positive catalyst for gold prices in the years ahead.

Don’t Fight the Fed

The old market adage, “don’t fight the Fed” worked. Despite massive unemployment and a huge reduction on GDP in several quarters last year – the stock market recovered from a bear market and hit new all-time record highs. Why? Don’t fight the Fed. The Federal Reserve unleashed its largest liquidity campaign in history – printing trillions of new dollars for quantitative easing and emergency spending measures. While the stock market may be one big asset bubble – hugely overvalued and at lofty heights – the Federal Reserve money printing successfully fueled a big risk rally – in a major economic disconnect between Wall Street and Main Street.

The American Spirit Is Strong

Despite many health, political and economic challenges last year – the American spirit remains strong. The power of modern science delivered a COVID vaccine in record time – and while many challenges still lie ahead – those who bet on America are usually right.

Courage. Perseverance. Optimism. Rugged individualism. Compassion. Innovation.

Throughout history, Americans have dug deep, persevered and succeeded due to the strong American spirit in each one of us and our nation overall.

As we move into a new era – our American spirit will serve us well.

Bitcoin at All Time Highs – What’s Next?

Posted on January 20, 2021June 6, 2025 by Blanchard Admin

Bitcoin climbed nearly 40% since the start of 2021 – breaking through the $40,000 mark. That was followed by a quick 10% slip the last two days, falling below the $32,000 level. This highlights the wild volatility of cryptocurrencies.

The escalating, hyperbolic, surge in Bitcoin has all the markings of a FOMO rally. That’s a term otherwise known as the ” fear of missing out.”

Yes, FOMO is running on full steam.

Are you thinking of investing in Bitcoin now?

Before you do, consider this.

“Bitcoin crashed hard in 2018, losing about 80% of its value. Investors still don’t really know why,” according to a Dec. 17, 2020 Bloomberg article.

There’s an excellent chance that the Bitcoin boom is at a euphoric top. See the chart below.

Investors who buy into any market mania at this point in the cycle – often lose it all.

We’ve seen this before. And, no doubt we’ll see it again.

Tulip bulbs in 1637 in Holland. The South Seas bubble in 1720. The Dot.com bubble of the 1990’s which saw U.S. tech stocks crash 80% by October 2002. And the U.S. housing bubble which saw home prices nearly double from 1996 into 2006 and then crash in value by over 30% leading to the Great Recession of 2008.

What lies ahead for Bitcoin?

No one really knows.

Yet, we do know that smart investors take profits. There is an old market adage: “You can never go broke taking a profit.”

It’s not a true profit however, until you liquidate the position, sell it and get your money.

Don’t fall prey to recency bias

It is very common for investors to assume what has happened recently will continue to happen in the future.

Psychologists call this “recency bias.” It refers to the phenomenon where an individual more easily remembers recent events, compared to something that occurred in the past.

If you own Bitcoin right now, it could be easy to allow recency bias to impact your investing decisions. Beware. Simply put, the recency bias makes it easier for you to remember Bitcoin’s blistering rally in the first few days or 2021 versus the 2018 Bitcoin crash – where it lost 80% of its value.

Here’s the rub. Investors often mistakenly rely on recency bias to make investing decisions.

Don’t assume Bitcoin will continue to rise in value simply because it was soaring a few days ago.

There’s fear of missing out. There’s greed – hoping the price will go higher. There’s recency bias. None of these emotionally driven investing decisions usually work out well for investors.

It’s time to liquidate some or all of your Bitcoin position and move to gold. Take those profits as a gift – and turn them into something that can never disappear into thin air, get hacked, or crash to zero.

While there may be wild predictions for how high Bitcoin can climb, beware. There is still a significant lack of understanding on how the technology actually works, or how it could ever be used in commerce. And there are over 2,000 other cryptocurrencies – which means Bitcoin might not even be the right horse to bet on in the race.

Check back soon for our final installment in our Bitcoin series –where we will dig deeper into the regulatory environment which may trap investors in the future. And the solution that central banks see that could render Bitcoin useless. Please leave a comment or question below – we value your opinion!

Missed Article 1? Read it here: Bitcoin Captures Imagination of Future Space Tourists

We’d love to hear your comments and questions about Bitcoin below. Our portfolio managers are experts in the tangible assets field and are available to answer your questions and discuss the market outlook for gold and Bitcoin ahead. Please call Blanchard today at 1-800-880-4653.

Subscribe to the Blanchard Newsletter

Proud Members Of:

Request a Callback