In case you haven't noticed, precious metals have had an impressive three-month run to start the year. Gold is up nearly 9% year-to-date, while silver has surged over 12%.
These gains are especially significant because during this same time frame both the DOW and the US Dollar hit all-time highs. For gold and silver to appreciate in these headwinds is quite impressive, yet, it seems most investors haven't really noticed.
With all the noise coming out of Washington and the strength of the stock market, gold and silver's impressive run appears to have been lost in the shuffle.
However, it seems the "Trump exuberance" in the stock market is starting to fade. The DOW has fallen in value 500 points since hitting 21,000 and the dollar has softened also.
This probably has a lot to do with the Federal Reserve raising interest rates on the 15th of March and the expectation that 2 more rate hikes could occur this year. And, let's not forget that President Trump has repeatedly stated he wants a weaker dollar to level the playing field in international trade. All these factors should be favorable for higher precious metals prices in the coming months.
Debt Ceiling Debate to Cause More Volatility
There is one other event looming on the horizon that nobody seems to be talking about: Less than a month from today, on April 28th, the current continuing resolution to fund the government expires. If Congress does not vote to raise the debt ceiling (again), we will have a government shutdown as we did in 2013.
Needless to say, another government shutdown would greatly rattle the financial markets here and abroad. As we've mentioned many times before in our correspondence, the key is to accumulate precious metals before a breakout occurs.
Our research has led us to believe that $20 Liberty Head Gold is trading at historically low premiums in relation to their gold content.
Remember, each coin contains just under an ounce (.9675) of pure gold, so the majority of their value is their gold content alone.
Think of these as "Gold Bullion with Muscle":
We'll conclude this report with three timely recommendations if you have been considering adding more gold to your holdings.
