After spending most of 2018 above $1,300 an ounce, gold is hovering around $1,220 per ounce—a twelve month low. Just since June 14
th
, it has fallen nearly $80 an ounce while stocks keep grinding higher. These lower prices have spurred many of our clients to make some rather substantial acquisitions in both gold & silver in recent weeks.
Consider this:
The DOW has
nearly quadrupled
in value from 6,443 in March, 2009 to 25,500 today. The NASDAQ, after hitting 1,268 during the same time,
has gone up six-fold
. After ten years of prosperity in stocks and real estate,
many of our clients are beginning to express concern that it’s starting to feel like 2007 all over again
—and that markets are long overdue for a sizable correction.
Stock market problems are usually reflected in the New York City real estate market, as happened in 2006. Judge for yourself: Go to
zillow.com
and enter Brooklyn Heights, the tiny upscale neighborhood next to Manhattan: see the oceans of properties for sale and the many price reductions. The Big Apple suddenly has a big problem.
One thing is certain—the inevitability of market cycles. While timing them is never certain, this undeniable fact has caused many to take some profits off the table and anchor them in private precious metals. Furthermore, when looking back at gold’s top six performance years in the September to December time frame, we find some overwhelming
double-digit gainers,
particularly during years when stock markets are correcting:
22.89% - 2007
18.44% - 2005
14.97% - 2009
13.88% - 2010
10.93% - 2002
10.43% - 2003
