From Birch Gold Group
This week, Your News to Know rounds up the latest news involving precious metals and the overall economy. Stories include: Gold is the best investment for the global market, Wall Street and Main Street see gold maintaining upwards momentum, and gold is the only safe haven in the coming currency war.
Gold is the Best Investment For the Global Market
Over the past few years, as investors and money managers employed one risk strategy after another, Ray Dalio held onto his advice that most portfolios could do with a bit more gold to them. Besides heeding the advice in his personal finance, Dalio has made gold a prominent part of his $150 billion hedge fund. Last year, Bridgewater Associates, which is both founded and run by Dalio, was named as the year’s top-performing hedge fund.
Given the recent happenings on the global stage, Dalio believes that investors and strategists are even more pressed to listen to his words of warning, according to the IBTimes. As the billionaire noted, the global market appears to be undergoing a paradigm shift after a decade of risk investment.
Following the 2008 crisis, governments around the world turned to quantitative easing in order to prop their economies. While this achieved the desired effect of stabilizing the markets in the short-term, it also incurred a massive amount of corporate and government debt.
According to IBTimes, the long-term effects of the post-2008 global banking strategy could soon come into full force as the Federal Reserve, and several other central banks, once again turn dovish. More than just focusing on the end of the bull market in stocks, investors should pay special attention to the state of government bonds and their currencies as the global economy runs loose. Questioning how long creditors are going to tolerate zero or negative-yielding government bonds, Dalio again urged investors to make the leap towards gold, as the metal will not only provide safety and preserve wealth but also offer returns in an environment where they can scarcely be found.
Wall Street and Main Street See Gold Maintaining Upwards Momentum
Gold has firmly kept its momentum as the Federal Reserve doubled down on its dovishness, climbing as high as $1443 an ounce during Friday’s trading session. According to a recent survey on Kitco, both Wall Street and Main Street traders see the metal continuing on its upwards path.
The Wall Street survey included twelve professionals, of whom 67% said that gold will keep moving up as it has over the past month. Out of the 643 participants in the Main Street poll, 74% agreed that gold’s uptrend will persist. The previous Wall Street survey on gold’s outlook had a neutral-to-bearish consensus, which suggests that professionals are changing their views on what will make for a good investment in the near future.
Charlie Nedoss, senior market strategist with LaSalle Futures Group, is among the many who feel that the Fed’s policy shift played a key role in gold’s recent upswing and will continue to propel gold even higher, as the markets renewed their expectations of a 50-basis point rate cut following comments by New York Fed President John Williams on Thursday. Kitco’s senior technical analyst Jim Wyckoff pointed out that chart movement affirms that gold will break out even further in the near-term. Daniel Pavilonis, senior commodities broker with RJO Futures, noted that there may not be much room for a pullback, as any kind of price downtrend would result in buyers pouring into the gold market.
Adrian Day, chairman and chief executive officer of Adrian Day Asset Management, believes that the Fed’s actions have placed gold in the perfect spot and therefore expects the market to remain mostly unchanged regardless of what happens during the Fed’s next meeting. Nonetheless, Day and his firm are also highly bullish on gold and forecast more price gains for the metal due to unstable currencies and worrying stock valuations.
Gold Is the Only Safe haven in the coming currency war
In a note published on Monday, Deutsche Bank AG’s analysts said that gold will be the only safe haven to turn to in what is shaping up to be a full-blown currency war, reports Newsmax. What started as a disagreement over tariffs regarding imports into the U.S. soon turned into a fiat dispute, with President Trump accusing both China and Europe of manipulating the yuan and euro, respectively, in order to gain a trade advantage.
The President has since hinted that the U.S. should act in accordance and purposefully weaken the greenback, a move that hasn’t been made since 2000. Should Trump follow through with this strategy, Deutsche Bank’s Alan Ruskin believes that other countries will be quick to retaliate in kind, sparking a true currency war.
“With a currency war most likely to be fought on USD/CNY and EUR/USD terrain, one approach would be to steer clear of the direct conflict,” said Ruskin. “By far the most direct and simple way to trade the complexities of a currency war is by going long gold.”
The possibility of a U.S. FX intervention is just the latest in a long line of tailwinds that have allowed gold prices to rise more than 10% since the start of the year and hold above six-year highs. Trump’s latest comments fall in line with his push for a more dovish Fed, as the President has stated on numerous occasions that a strong greenback is exerting a heavy toll on U.S. exports.
With global tensions spiking, thousands of Americans are moving their IRA or 401(k) into an IRA backed by physical gold. Now, thanks to a little-known IRS Tax Law, you can too. Learn how with a free info kit on gold from Birch Gold Group. It reveals how physical precious metals can protect your savings, and how to open a Gold IRA. Click here to get your free Info Kit on Gold.
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Gold? Vote up.
Silver? Vote down.
Donkey…I can’t vote…one is my treasure and the other will buy all my treats!
Some of that extra or junk silver may come in handy for private trading in food or ammo, especially in an environment that only uses controlled digital blockchain currency as an exchange medium. I know supposedly educated adults who’ve never seen or touched a mint silver dollar, ever. Nor could they tell you Spanish pieces of eight used to be a prime means of exchange when the Continental dollar was toilet paper.
That’s sad.
In a black market economy silver may become an alternative means of exchange – or it may not. No matter what, I’m gonna hedge my bets and own Ag whatever happens.
e.d. ott,
Been a stacker since 83. Going long has paid off big time.
Like the guy who stutters says: “It’s all in the ti…tim…timin…timing.”
Silver is a lagging indicator tied to manufacturing. There’s plenty more of it around compared to gold which is considered to be more of a rare monetary item to be hoarded. If you don’t like a double or triple on your investment, that’s fine. I do. I like trading paper for relatively cheap metal with growth prospects.
Gold is almost 100X more expensive per ounce than silver. Will silver ever get to be as expensive as gold? Probably not but I’m not going to let an opportunity for a nice trip or quad gain pass by if, or when, the US dollar eventually goes south.
How about both? Gold consolidating in a nice pattern right here while Silver is on a rocket blast. Both bullish. Dollar also strong, which may be surprising to some.
The strong dollar isn’t going to last.
Trump or no Trump, in time, the deficits and tariffs are going to cause some serious problems with the paper dollar. When the Precious (Au) goes on its next tear, silver will follow to some degree.
I’m gonna be right on top of that with some junk silver, too. A bit here, a bit there, and I will trade some for a certain piece of hobby gear I’ve been wanting for a while – a stainless steel container for making beer!
Try this.
Take a few modern mintage silver nickles, dimes, quarters (tin) and shiny new pennies. (tin)
Kind of lightweight. Feels cheap.
Drop it on the kitchen table and listen to it.
Then take a hand full of pre-’65 quarters, nickles, dimes and pennies, and repeat. (silver & copper)
Do you hear the difference? Can you feel the weight difference?
Save your tin in a jar. When enough accumulates, trot down to a coin store and buy some junk. Silver.
Give your kids some of it for birthdays or Christmas. Tell ’em to save it.
It’s going to be worth a lot more some day in the future. Holds value.
Already many X their face value.
And going higher.
AuGee,
For the last year every time I see my 7 year old grandson I give him an American Eagle one ounce coin.
Forget to bring one the last visit and wrote him an IOU, he stuffed it in his piggy bank.
Every time I see him I give him a PM lesson.
I have given three 20 one ounce American Eagle Coin rolls as gifts to my daughter and son-in-law to inspire them to start stacking. But so far they are staying in the soon to be stampeded fiat herd.
I do believe, good friend, that when we are gone and our ashes are scattered on the winds and water, one day the kids and grandkids who have kept them will hear of how everyone is seeking some silver and gold scrip.
They’ll then remember…hey Gramps / Dad gifted some of that stuff to us years ago,
and was always talking about it.
They’ll find it, get it appraised, and think: “Holy Cheet, mon. He wasn’t crazy. He was right!”