Why the Next Crash Could be Worse than 1987

Stocks have been climbing for a solid decade now, and more and more investors appear ready to jump on the bandwagon for fear of missing additional gains. As has been discussed at length in previous posts, however, the market has the potential to take a swift and severe turn lower, catching many investors off-guard in the process. In fact, the next major stock market crash could potentially be greater than what was seen in 1987, when the Dow lost almost a full quarter of its... Continue Reading

Is Gold on the Verge of a Major Breakout?

The gold market is showing some impressive signs of strength in recent weeks after pulling back from the highs seen in mid-September. The market is trading back above the $1300 level and holding its ground. The yellow metal could potentially make a quick run back to those highs seen last month around $1350. The question is: Will the market be able to make a sustainable move higher? Gold has a number of key issues currently working in its favor, with two potential hurdles. The market... Continue Reading

A Lot More of the Same

Yesterday, investors got the release of the latest Fed meeting minutes. For those looking for more clarity from the central bank regarding its plans for monetary policy going forward, the minutes were likely a disappointment. In its commentary, the central bank discussed jobs, a lack of inflation and a stronger economy. They also again reiterated another rate hike this year. While the Fed focused on a number of positives, there are some key negatives that cannot be overlooked. The Fed’s failure to spark meaningful inflation... Continue Reading

Geopolitics Remain a Key Driver

Gold has gotten the week off to a strong start, moving sharply higher on Monday and seeing follow-through upside on Tuesday. The metal is likely seeing renewed buying interest as the geopolitical landscape continues to warrant risk aversion. The recent vote by Catalonia to secede from Spain is just one of several key issues that could potentially fuel risk aversion. Over the weekend, thousands of Spaniards protested the potential move, and it remains unclear if the region will in fact break away from the rest... Continue Reading

The Market’s Demise May Be Another Step Closer

The stock market continues to show strength as it remains on a decidedly upward trajectory. Recent articles in financial media have even discussed the possibility of a good old-fashioned melt-up in stocks from current levels. Although the market could certainly see further gains from current levels, eventually the stock bulls will run out of gas and things will turn. While no one knows when stocks could reverse course or even collapse, the magnitude of those declines would seemingly be increasing with each and every new... Continue Reading

Could Higher Rates Derail Gold?

It seems that a big deal has been made of the latest FOMC meeting at which the Fed reiterated its plans for another rate hike in 2017, and three hikes next year. Will the Fed make good on its promise? That’s an entirely different question. It is important to keep in mind that the Fed was originally planning on raising rates three times in 2016, yet only one hike actually materialized at the end of the year. Could the Fed end up electing to hold... Continue Reading

Don’t Be Fooled

The gold market has come under some selling pressure in recent weeks and can be viewed in one of two ways: First, that the recent rally is failing and that further downside could potentially be seen or, secondly, that the current dip from recent highs is nothing more than back and fill trade and an excellent opportunity to buy gold at a relative discount. Sure, the dollar index has been rebounding a bit and that may be weighing on gold. And yes, stocks remain at... Continue Reading

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Why a Gold IRA?

Many people are not aware of the fact that certain types of gold bullion can be purchased and held within an IRA account. In addition to gold, other metals such as silver, platinum and palladium may also be eligible. Although there are strict eligibility requirements and rules that must be adhered to, buying and holding physical gold in an IRA can have numerous advantages. Here are three reasons why you should consider a gold IRA: Potential tax savings: Funds invested in an IRA may potentially... Continue Reading

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A Powder Keg

Gold is seeing a moderate pullback on Tuesday following gains to start the week. The situation with North Korea appears to be deteriorating, and investors finally appear to be waking up to the fact that an armed conflict could potentially be seen in the coming weeks or months. North Korea has stated that the U.S. has declared war on the nation, and has also threatened to attack U.S. bombers even if not in North Korean airspace. This follows President Trump’s threat to destroy North Korea... Continue Reading

Buying Opportunity

The price of gold has seen some moderate declines in recent days. Although some may attribute these declines to the FOMC meeting commentary on Wednesday, there may be other, simpler forces at work. On Wednesday, the Fed reiterated its plans for another interest rate hike this year, and the central bank says it remains on track for another three rate hikes next year. The Fed seems intent on following through with its plans despite a significant lack of inflation and other issues that could potentially... Continue Reading