Posts by Kirill Zagalsky

3 Reasons Gold May Shine During the Next Recession

It’s no secret that the global economy has been slowing. The ongoing U.S./China trade war is dragging on the globe’s first and second-largest economies and there currently does not appear to be an agreement in the making. The current economic expansion is getting quite long in the tooth, and the effects of tax cuts and government spending are likely to fade in the months ahead. Some analysts have already begun sounding the alarm bells about the next recession, which could come sooner than many anticipate.... Continue Reading

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The Only True Safe Haven

Just because the gold market has had limited upside in recent months does not mean that investors won’t turn to the metal if things get dicey. The ongoing U.S./China trade war has taken a turn for the worse in recent weeks, and the war over trade could potentially take much longer to resolve than previously anticipated. Last week, Both sides pushed away from the negotiating table. The U.S. raised tariffs on $200 billion of Chinese goods from 10 percent to 25 percent. China, as expected,... Continue Reading

Three Reasons Another Recession is Inevitable

Some analysts in recent months have suggested that the U.S. could be headed for another recession. The ongoing U.S./China trade war, fading effects from tax cuts and government spending and an aging expansion are just a few of the reasons cited. Other analysts have suggested that recent economic weakness and market declines are normal and simply some bumps in the road. Whether the next recession hits this year, next or in the next few years, it will arrive. Here are three simple reasons that a... Continue Reading

Active Buyers Follow the Money

According to a recent report from Financial Times, the People’s Bank of China has continued to add gold to its reserves for the fifth month in a row. The central bank reportedly added 480,000 ounces last month bringing its total holdings to $78.3 billion. China hasn’t been the only buyer of the metal either. Numerous emerging market central banks have been active buyers as nations seek to diversify their reserves away from the dollar. Last year, central banks reportedly bought some $27 billion worth of... Continue Reading

Key Divergences Point to Higher Gold

Following some recent declines, the gold market has not accomplished much thus far in 2019. Although many of the so-called “experts” may pounce on this fact, we see it as a significant positive for the market. Not only is it a positive, but it could potentially be indicative of a major rally on the horizon. Here’s why we can count on gold resilience: Gold has endured a stronger dollar: Typically, the dollar and gold have a negative correlation. That is to say that when the... Continue Reading

3 Reasons You Can’t Afford to NOT Have an Allocation in Gold

Throughout its history, gold has been considered a reliable store of wealth and protector of value. In fact, even today some refer to the yellow metal as the only true form of money there is. Although gold certainly has tremendous upside price potential, there are other reasons – arguably even more important reasons – to build a significant allocation in gold. Here are three of the simplest, yet biggest, reasons to own physical gold: Fiat Currencies Fail History has shown time and time again that... Continue Reading

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Has the Dollar Peaked?

The stronger dollar has likely been a major factor in gold’s lack of upside follow-through in recent months. The currency hit its highest level of the year last week but is seeing a mild pullback today in early action. The greenback’s strength is not really all that surprising – it has benefitted from concerns over global growth and interest rate differentials. The Dollar Is Near a Top… The dollar may be at or near a top, however, and could soon see a significant price reversal.... Continue Reading

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Lower Prices Not to Be Feared

The gold market has been under pressure in recent days, and prices are trading at their lowest point of the year. Numerous “analysts” have already covered gold’s fall through support in the $1280-$1290 region and have suggested that lower prices may be in store. For the patient, long-term investor, this is a positive that should be welcomed. The notion of buy low, sell high is not new and has served investors well for ages. Are You Considering Lower Prices or Good Value? Long-term investors should... Continue Reading

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Surprise, Surprise… The Fed Is Stuck

Wednesday afternoon brought the release of the latest Fed meeting minutes. The minutes detailed what some analysts already knew: The central bank is on hold for the rest of the year and will not raise rates further. The Central Bank Is on Hold for 2019 Numerous Issues Cited by the Fed The Fed cited numerous issues that weighed in its decision: A general unease over the U.S. and global economies, the ongoing trade war with China, a lack of inflation and a messy Brexit. Fed... Continue Reading

Buy the Rumor, Sell the Fact

Stock markets have recently put together an impressive string of gains that has taken the benchmark S&P 500 above previous resistance. Stocks could potentially be headed for an attempt at fresh all-time highs as volatility continues to decline. And why shouldn’t they? The Fed has become increasingly dovish; a U.S./China trade deal may be getting close, and jobless claims are at the lowest level in 50 years. Against this positive backdrop for stocks, however, lurk a number of issues that could derail risk assets in... Continue Reading