Thank you for being a subscriber to our email market updates. Below you will find exclusive commentary on the overall economy, stock markets and how they relate to precious metals. At the end, we will share with you our top suggestions if you’re thinking about making some timely acquisitions in physical precious metals. Questions? Just call 1-800-928-6468, we’re happy to help you in any way we possibly can.
Has 2017’s ‘Buy any stock market dip’ been replaced with 2018’s ‘Sell into strength’?
For years the Fed had the market’s back by keeping interest rates way too low and then offered encouraging words whenever stocks went down. Under Ben Bernanke and Janet Yellen a new understanding of keeping an upbeat stock market and steady rise in home prices was critical. With memories still fresh from the 2008 financial crisis, we have witnessed income growth slow down to a snail’s pace while those in higher income brackets have seen their stock portfolios and home valuations on the rise. This may have encouraged more spending to stimulate the economy in the short term, but with any adverse decline in stocks, the house of cards built on an inflated stock market could come falling down bringing the entire economy tumbling down with it.
It remains to be seen if this is already happening as consumer spending has been sluggish in the first quarter of the year. Gold has struggled to rise higher with climbing interest rates and a stronger dollar. Now that the Fed is raising interest rates, we will find out just how resilient the economy is. The Fed’s unprecedented effort to push interest rates down to zero actually discourages Americans to save and became one of the most profound economic experiments in financial history.
Make no mistake Wall Street knows now that the Fed’s experiment has concluded and monetary policy is moving in reverse. It has potentially set the markets up for a massive disruption. We believe the price of gold, the ultimate financial insurance, will benefit.
What will get gold going-really going?
Gold has held up during the stock market weakness this year and is well off its 2015 bottom of $1,050. The metal has surprised skeptics both by staying firm in the face of rising interest rates and not falling in the March-April period, avoiding the seasonal weakness that often arrives in the spring. Now that the summer is approaching, what will push gold well over $1,350?
One might think this could come from a positive change in demand from India or China, as these countries are the world’s largest consumers and their purchases increase late in the summer. One might also see that the results of tax cuts, which are predicted to help create a trillion-dollar deficit, could arrive as soon as this year. Both of these scenarios might help push the price of gold up sharply. We think the most important catalyst is that Wall Street simply turns its attention to gold after a very long bull market in stocks. Fundamentals aside, the reason it would do so is momentum.
Most professional investors, even those who profess to be driven by “fundamentals”, tend to pay a great deal of attention to price charts. Silly as it sounds, they are interested in things that are going up and selling things that are going down. They love investments that have momentum, given the likelihood that significant trends most often persist. Just look at many long-term charts like currency, stocks, or bond market movements to discover these persistent trends.
It is clear that stocks have outperformed gold significantly during the recent stock market boom. Don’t be surprised if you see Wall Street change its views on gold. In recent months, bearish talk on the metal has simply vanished. If the gold momentum persists and we break out above $1,350, we could see Wall Street starting to be bullish on gold again. We already see the bearish talk on stocks is well underway.
Our Top Gold Recommendations:(Save 3% with check/wire)
- Top Recommendation: Only 100 coins available at this price!
- Each coin contains just under ¼ ounce of pure gold
- Certified Mint State and over 100 years old
- Orders of twenty will come in NGC/PCGS boxes for storage
- Lowest premiums over melt value we’ve ever seen
- Each coin contains just under an ounce (.9675) of pure gold
- Certified Mint State and nearly 100 years old
- Like bullion with muscle-for a small amount over modern bullion you can own classic U.S. gold
Our Top Silver Recommendation:
- Limited mintage of only 75,000 coins—only 750 cases being released worldwide!
- Same price per ounce as Silver American Eagles
- Orders of one-hundred coins will come in sealed cases from the Perth Mint
- Orders of ten will come in mint-fresh rolls of ten