One reason to consider investing in dealer gold has long been concern about whether the U.S. government will be able to fully fund its obligations to the Social Security system in the coming years.
This is especially the case when considering a recent report from the Associated Press about the $2.5 trillion in IOUs the federal government keeps in Parkersburg, West Virginia for the Social Security system.
The report noted that for the first time in more than 20 years, the Social Security system is expected to pay out about $29 billion more in benefits than it collects in revenues. However, the IOUs that are the subject of the AP report have already been spent on other government spending priorities.
For the past two years, the government has run a deficit in excess of $1 trillion, and the national debt is expected to pass $14 trillion later in the year. Worse, it remains to be seen if there is enough political will in Congress to tackle a crucial topic that has been called the "third rail" of American politics over the years.
Given the financial chaos that a U.S. debt default would cause, let alone an inability to pay out Social Security benefits, those who invest in precious metals may find themselves well-protected against any possible market fluctuations.
