Sunday, February 7, 2010

Stability of Social Security may be questionable

Investors have been consulting with gold and silver dealers for years because of concern about economic instability and the long-term prospects for its recovery.

However, a recent report is giving investors a whole new reason to worry about the state of their finances heading into the future.

An article from Fortune Magazine highlights data from the Congressional Budget Office showing that for the first time in more than two decades, the Social Security system is receiving less in taxes than it distributes in benefits, which invites speculation about the long-term future of federal entitlement programs.

The magazine notes that this raises the danger that as a result, Social Security could require a massive government bailout not unlike the massive infusions of cash that were provided to a number of major corporations as the recession was getting underway.

If the U.S. was to default on its debt obligations or to pay for its largest entitlement programs, the ensuing financial ramifications would likely cause great difficulty and potential chaos in the world markets. With that in mind, investing in precious metals like gold and silver is a sound safeguard against possible setbacks in the future.

News brought to you by Superior Gold Group – expert gold dealers offering precious metals products.