Tag Archive: hedge against inflation

3 Reasons Gold May be Useful During a Recession – Urgent Economic Indicators

In case you missed it, numerous economic indicators are now flashing red. The latest indicator to show weakness was today’s non-farm payrolls report. The U.S. added just 75,000 jobs last month, while consensus estimates were looking for a gain of about 177,000 jobs. The figures for March and April were also revised lower, and wage pressures were muted with average hourly earnings rising less than expected. The risk of recession is clearly on the rise, and now is the time to diversify with asset classes... Continue Reading

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Risk Aversion Accelerates – This Could Be It

The gold market is finally seeing some significant upside as risk aversion accelerates. The metal has now broken out of its recent trading range and could potentially set its sights on a new high for the year in the weeks ahead. There are numerous issues behind the recent ascent, and many of these issues could potentially fuel the next major global recession. The ongoing U.S./China trade war appears poised to continue. After a deal was reported to be close in recent weeks, both sides have... 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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Don’t Say You Weren’t Warned

The last several weeks have seen developments on multiple fronts that could potentially shape the next major market meltdown. The Fed’s reluctance to continue shrinking its balance sheet must be at the top of the list. The writing on the wall has never been clearer: Stock markets cannot maintain current levels and wouldn’t have gotten here in the first place without the massive stimulus efforts of the Fed. In other words, stocks are currently trading at “artificial” levels. Stock valuations have not reached current levels... Continue Reading

10 Reasons You Should Own Physical Gold

Physical gold carries no counterparty risk: Gold coins or bars cannot go bankrupt or default. You will not wake up one day the proud owner of a worthless piece of paper. Physical gold can be transacted privately: While certain reporting requirements may exist, physical gold can be bought and sold privately and anonymously. Gold has been considered a reliable store of wealth and value for thousands of years: Gold has been used as a store of value and medium of exchange for centuries. Try to... Continue Reading

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