- The U.S. has recently seen consistent economic growth that has been fueled by strong consumer spending from average Americans.
- To sustain this level of consumer spending, Americans are draining their savings, spending more than they are bringing in as their wages stay stagnant or decline, according to experts who spoke to the Daily Caller News Foundation.
- “The high probability of recession in the near term is very troubling when coupled with the decline in savings,” E.J. Antoni, a research fellow at the Heritage Foundation’s Grover M. Hermann Center for the Federal Budget, told the DCNF. “People need more savings today than ever to cope with the higher cost of living, and instead, many families are headed into the next recession with less savings and more debt.”
(Daily Caller)—Under President Joe Biden, economic growth has been partly sustained by Americans spending through their savings on everyday goods, according to experts who spoke to the Daily Caller News Foundation.
Gross Domestic Product (GDP), a measure of economic growth, has remained persistently high, coming in at 2.1% for the second quarter of 2023, even as the Federal Reserve has attempted to tame growth through hikes of its federal funds rate. The main contributor to U.S. GDP is consumer spending, which has managed to notch consistent increases at the expense of the savings of average Americans, experts told the DCNF.
“Consumption is about 70 percent of GDP growth, so naturally any additional consumption by households and businesses is going to add to GDP,” Ryan Ellis, president of the Center for a Free Economy, told the DCNF. “But to the extent that consumption is fueled by one time windfalls from the government, it’s basically bringing future consumption into the present. Eventually, the lack of real income to justify the higher consumption will catch up with the households and businesses.”
The Personal Consumption Expenditure, a measure of the amount Americans have spent on consumer goods and services, as a percentage of GDP has stayed slightly elevated since the second quarter of 2022, staying around 68%, while a number closer to 67% has been more common over the last decade, according to the Federal Reserve Bank of St. Louis (FRED). In the second quarter of 2023, it made up 68.1% of GDP.
“In this case, it’s the excess savings,” Ellis told the DCNF. “Those are still being worked down. People are drawing down those savings to counter inflation increasing their core goods and services faster than income growth.”
Personal savings have declined in recent months, falling from over $1 trillion in May to just $794.1 billion in August, paling in comparison to the nearly $6 trillion Americans had saved in April 2020 at the early stages of the COVID-19 pandemic, according to FRED.
Inflation remained high in September, rising 3.7% year-over-year for the month, following the same rise for the month of August. Core inflation, which excludes the volatile categories of energy and food, was even higher for the month of September, rising 4.1% for the year.
Inflation, as measured by the personal consumption expenditures (PCE) price index, peaked at 7.1% in June 2022. In August, PCE inflation stood at 3.5%. Are there risks that might cause PCE inflation to take longer to drop or potentially heat up again? https://t.co/AAjkTqcCxn pic.twitter.com/7PhZwGugIU
— St. Louis Fed (@stlouisfed) October 20, 2023
“In the last three months for which we have data, the growth in consumer spending has outpaced income growth,” E.J. Antoni, a research fellow at the Heritage Foundation’s Grover M. Hermann Center for the Federal Budget, told the DCNF. “Consumers have been using savings and going into debt to fuel their spending. That’s providing a temporary boost to GDP but the decline in savings is also throttling investment, the key driver of long-run economic growth. Savings have been trending down for nearly the entire tenure of the Biden administration because that’s precisely the period in which we’ve had inflation above the pre-pandemic trend.”
Real wages have declined 2.1% from the first quarter of 2021 when Biden took office compared to the third quarter of 2023, according to FRED.
The Biden administration has repeatedly insisted that the economy is in good shape, pointing to the president’s signature economic policy, “Bidenomics,” as the reason. Despite the insistence, many experts have pointed to the high-spending policies at the core of Bidenomics as the cause of the recent sustained high inflation.
“Alas, the U.S. savings rate has plunged back down to normal low levels today,” Chris Edwards, the Kilts Family Chair in Fiscal Studies at the Cato Institute, told the DCNF. “The low savings rate is a concern because it may indicate that Americans expect the government to bail them out if a recession or another crisis hits.”
The Fed has been keen on trying to avoid a recession, even as it keeps rates at a 22-year high. Despite this, Jerome Powell, chair of the Fed, noted at the end of the September Federal Open Market Committee meeting that an economic soft landing, meaning a slowdown in market growth without triggering a recession, was not a “baseline expectation” for the Fed.
“The high probability of recession in the near term is very troubling when coupled with the decline in savings,” Antoni told the DCNF. “People need more savings today than ever to cope with the higher cost of living, and instead, many families are headed into the next recession with less savings and more debt.”
Household debt shot up to a new high in the second quarter of 2023, with Americans collectively owing $17.06 trillion, with $1 trillion of that being held just in credit card debt.
“The notion one often hears by left-of-center analysts is that savings are bad for the economy, but this is based on faulty Keynesian theories,” Edwards told the DCNF. “Savings are hugely positive for the economy because they are the corn seed of growth. Savings fuel capital investment and expansion.”
The White House did not respond to a request to comment from the DCNF.
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Why Bullion Beats Numismatics and Collectible for Your Safe or IRA
Precious metals continue to attract Americans seeking reliable ways to protect their wealth amid inflation, geopolitical risks, and stock market swings. Whether stored in a home safe or held inside a self-directed IRA, physical gold and silver deliver tangible value that paper or digital assets often lack. Yet investors must choose carefully between bullion—pure bars and coins valued mainly for their metal content—and numismatics or collectibles, where rarity, history, and collector demand heavily influence pricing.
Advisor Bullion serves as a dependable source for straightforward, high-quality bullion. The company specializes in physical gold, silver, platinum, and palladium, emphasizing transparent pricing and products that deliver maximum metal content for every dollar spent. This approach makes it ideal for both personal holdings and retirement accounts.
Bullion consists of refined precious metals in standard forms like one-ounce coins (American Gold Eagles, Silver Eagles, Canadian Maple Leafs) or bars. Their value tracks closely to the current spot price of the metal. A typical gold bullion coin trades near the live gold spot price plus a small premium. This structure keeps costs clear and predictable.
Numismatic coins and collectibles add substantial value from factors such as age, rarity, minting errors, or historical significance. A pre-1933 U.S. gold coin or graded proof piece can carry premiums of 30%, 50%, or even 200% above melt value. While this appeals to hobbyists, it creates complexity. Pricing depends on subjective grading, collector trends, and auction results instead of daily spot prices.
For investors focused on wealth preservation and retirement security rather than building a collection, bullion often delivers better results.
Lower Costs and Better Liquidity for Home Storage
When keeping metals in a home safe or private vault, liquidity and efficiency count. Bullion offers clear benefits:
- You acquire more actual gold or silver per dollar invested. Numismatics divert a large share of your money into rarity premiums and massive sales commission, reducing your metal exposure.
- Selling bullion involves tight bid-ask spreads, so you recover nearly full spot value with minimal fees. Collectibles require finding the right buyer and may sell at a discount if demand for that specific item weakens.
- Bullion prices remain transparent and update with global spot markets. You can track gold near current levels or silver accordingly and know exactly where your holdings stand. Numismatic values are priced by the Gold IRA companies with hefty margins applied.
- Standardized coins and bars store efficiently and divide easily for partial sales. Rare coins often need protective slabs and controlled conditions, adding hassle and expense.
- Bullion enjoys worldwide acceptance. A 1-oz Gold Maple Leaf or Silver Eagle sells quickly to dealers anywhere. Niche numismatic pieces may appeal only to limited buyers, slowing liquidation when speed matters.
In times when quick access to value becomes important, bullion’s simplicity stands out.
Stronger Fit for Precious Metals IRAs
Precious metals IRAs continue gaining traction as investors diversify retirement portfolios beyond stocks and bonds. IRS rules permit certain bullion products in self-directed IRAs if they meet purity standards (.995 fine for gold, .999 for silver) and are held by an approved custodian. Eligible items include American Gold and Silver Eagles plus many generic bars and rounds from recognized mints.
Numismatic and most collectible coins generally face heavy scrutiny from custodians due to valuation disputes and elevated markups. These higher premiums mean less actual metal ends up working inside the account.
Bullion avoids these issues. Its value links directly to verifiable spot prices, which simplifies reporting and lowers the risk of regulatory challenges. More of your IRA contribution purchases real metal instead of dealer profits or speculative upside. Over time, owning additional ounces that appreciate with the metal itself can create meaningful outperformance compared with high-premium alternatives that deliver fewer ounces.
Regulatory guidance from the CFTC and state securities offices repeatedly cautions against aggressive sales of expensive numismatics or “semi-numismatic” coins for IRAs. For retirement planning, transparent bullion from established providers reduces risk and aligns better with long-term goals.
How to Get Started with Bullion
Begin by clarifying your goals. Are you protecting savings in a safe, or moving part of a retirement account into a precious metals IRA? Focus on the number of ounces you can acquire at current prices rather than chasing marked-up collectibles.
Diversify sensibly: use gold for core preservation and silver for its blend of industrial and monetary qualities. Mix coins for easier divisibility with bars for lower per-ounce costs on larger buys. Arrange secure storage—whether at home with proper insurance or through professional facilities.
As economic uncertainties linger and faith in conventional assets erodes, bullion continues proving its worth as a dependable store of value. Its direct approach avoids the hype that sometimes surrounds collectible markets and keeps the focus on the metal itself.
For investors prepared to strengthen their portfolios, Advisor Bullion supplies the expertise and selection needed to acquire high-quality bullion efficiently. Whether building personal holdings or integrating metals into an IRA, their emphasis on transparent, investment-grade products helps secure more ounces today that support greater financial security tomorrow. In a complicated financial landscape, bullion’s clarity and reliability make it the smarter foundation for protecting what matters most.