U.S. Money Reserve Reviews the Historical Relationship Between Gold, Recessions, and Other Economic Challenges

During the 2007 to 2009 Great Recession, as losses spread throughout the financial system, the stock market faltered at times. The Dow Jones Industrial Average, for instance, dropped by 51.1% from its 2007 peak to its lowest point in 12 years, according to the Federal Reserve Bank of Atlanta.

Gold, on the other hand, rose nearly 50% between late 2007 and 2009, according to a CME Group analysis. This performance is typical for gold; when other assets are taking a beating, gold rallies. During six of the past eight recessions, gold has risen 28% on average.

Because gold has historically performed well during economically challenging times, such as recessions, many consumers have incorporated it into their portfolios to offset losses from assets that are more vulnerable to economic uncertainty. That is, they diversify their portfolios with gold.

Rich, for instance, turned to U.S. Money Reserve when converting some of his savings to physical precious metal assets.

“As our country and the world [seemed] to be in such turmoil, I knew I had to make a different choice with my savings to protect it,” Rich says in one of the U.S. Money Reserve reviews shared on the Better Business Bureau website. “Gold, I found, is the way.”

Several U.S. Money Reserve reviews on Google — such as one posted earlier this year by Joseph E. — echo Rich’s sentiment.

“It’s been a rocky few years lately, but I found my financial relief with U.S. Money Reserve,” Joseph E. says. “They are the real deal. They have been trustworthy and always willing to help me in my investment.”

The Federal Reserve’s Federal Open Market Committee (FOMC) raised the target range for the federal funds rate, which influences the interest rates consumers pay, multiple times in 2022 and 2023. The range, which was 0–0.25% in February 2022, rose to 5.25–5.5% by July 2023. The FOMC decided to maintain that level at its last three meetings in 2023, but is expected to reduce rates in 2024.

Former U.S. Mint Director Philip N. Diehl, who is U.S. Money Reserve’s president, says future rate reductions could prompt gold prices to rise, showing how the precious metal can also rise following positive economic news.

Last November, when markets became convinced the Fed had stopped raising rates and would soon begin lowering them, gold rallied $140 to an all-time high in only six weeks,” Diehl says. “Moreover, the gold market is now set to continue reaching new highs as the Fed lowers rates this year. Analysts expect a minimum of three rate cuts in 2024; some say we’ll get as many as six cuts, each one of which can be expected to boost gold.”

If you’re considering proactively adding gold to your portfolio to prepare for potential future rate decreases or other economic changes, U.S. Money Reserve can help.