Tag Archive: gold

Markets Can’t Have Cake and Eat it Too

The phrase “have your cake and eat it too” is commonly used to describe a situation in which people want the best of both worlds, or perhaps want to have two or more things that are incompatible. It can also be used to describe when people want more than what might be considered reasonable. The phrase simply alludes to the fact that you cannot have your cake and eat it too. Once you have eaten the cake, you can no longer have it. This is... Continue Reading

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The Case for Gold Has Never Been Stronger

The last few days have shown what can happen as investors get nervous and even start to panic. Yesterday’s declines in equity markets, which were over 3 percent, were the largest drop so far this year and showed just how seriously investors are taking the ongoing U.S./China trade war. the case for gold has never been stronger. As President Trump implements additional 10 percent tariffs on another $300 billion of Chinese goods, China has responded by devaluing its currency. The yuan moved past the key... Continue Reading

Could the Fed Reserve Cut Mark the Top for Stocks?

The Federal Reserve cut the Fed Funds rate today by 25-basis points in a move that was widely expected. Markets had been increasing calls for a rate cut from the central bank, and President Trump has made it no secret he thinks the Fed is on the wrong track and wants lower rates. Over the last nine years, markets have become increasingly accustomed to the Fed or other central banks riding to the rescue at any sign of market volatility or significant risk aversion. Central... Continue Reading

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Wait, What?

The highly anticipated Fed policy meeting has now come and gone, with Fed Chief Jerome Powell set to deliver his press conference. The central bank voted by a margin of 9-1 to hold the Fed Funds rate steady. The central bank did, however, still hint at the potential for rate cuts should conditions warrant such a move. The FOMC removed the word “patient” from its outlook, in a move that could signal a large degree of flexibility by the central bank. Some analysts have suggested... Continue Reading

U.S. Hardline Stance May Cause Dominos To Fall

The current state of geopolitics and the global economy warrant caution. Stocks are moving slightly higher in early action on Monday as the markets seem to be pinning their hopes on the Fed and another series of rate cuts. The Fed will be meeting this week, and although no action is expected on Wednesday, the central bank could lay the groundwork for the first rate cut in over 10 years next month. There are currently several issues at work, however, that could potentially set off... Continue Reading

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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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

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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