Posts On Gold

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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Why Buying Big on Dips Can Pay Off

The gold market has seen some significant dips in recent weeks. The market’s lack of upside follow-through combined with a breakdown below previous support levels has some pundits looking for further downside. As discussed in a recent post, large declines should not be feared but rather welcomed. A simple yet powerful strategy may look to buy heavier on any significant dips in price – say 5% or more. Although adding ounces on a regular basis is a great thing, buying heavier on such dips can... Continue Reading

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Cut Out the Noise from the Financial Media

Investors currently have a lot to digest and the financial media hasn’t helped. Stocks are in melt-up mode as earnings thus far have been strong and as key benchmarks carve out fresh all-time highs. The dollar has also followed suit and could potentially be headed for another leg higher. Risk appetite is strong while market volatility continues to probe lower. Financial Media Hyping Gold Declines As far as gold goes, there has been considerable talk of how it has been “broken” technically. The 200-day moving... 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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Central Bank Demand for Gold Surging

Central bank demand for gold reportedly hit the highest levels in 2018 since the end of the Bretton Woods system of dollar convertibility in 1971. With some analysts referring to gold as some type of meaningless relic, this begs the question of why the biggest financial institutions on the planet are looking to acquire even more gold. Store of Value Gold has a very long history as a reliable store of wealth and value. In the post-Bretton Woods era and without a return to some... Continue Reading

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6 Reasons We Could See a Weaker Dollar

As a dollar-denominated commodity, the gold market can be heavily influenced by strength or weakness in the greenback. Dollar strength may weigh on gold as it makes the metal relatively more expensive for foreign buyers, while a weaker dollar may boost the price of gold as it makes the metal relatively less expensive. The relationship between gold and the dollar, and all other paper currencies for that matter, is so important that investors often buy the metal as a hedge against a weaker dollar. Although... Continue Reading

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Another Explanation for the Rise in Gold

The recent rise in gold has been widely discussed in financial media. There have been numerous issues attributed to gold’s rise including the U.S./China trade war, an increasingly-dovish Fed, a slowing economy and a rising risk of recession. One issue-albeit one you probably have not heard about yet-is the increasing risk of stagflation. The phrase stagflation was first used in Great Britain and today is understood to mean a period in which prices rise without a corresponding increase in demand. During a period of stagflation,... Continue Reading

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How to Make the Most of an Investment in Gold

When it comes to making the most of an investment in gold, there is really one simple rule of thumb to follow: Buy as much as you can. With a long-term view and long-term objectives, the more bullion you can acquire the better. Not only does this strategy on how to make the most of an investment in gold provide the most upside appreciation potential, but it comes with other potential benefits as well. Higher Prices: Simple math tells you that the more gold you... Continue Reading

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Gold Rockets Higher Despite Stock Rebound

Gold is climbing sharply higher today as an improving technical posture, weaker dollar and disappointing data fuel buying interest. In what seems to be a recent trend, the latest reading on ISM manufacturing came in below expectations. Although the reading was still solid, the slightly lower gauge could potentially point to weakening economic growth. Other key data points in recent weeks have also shown a tendency to come in slightly below consensus estimates, and if the recent trend does continue it could start to raise... Continue Reading

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