Tag Archive: physical gold

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

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

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

Chinese Bank Buys “Secret” London Gold Vault

In another indication of Chinese demand for physical gold, China’s ICBC Standard Bank has reportedly agreed to buy a London vault from Barclays. The ICBC Standard Bank is the largest bank in the world by assets, and the vault being purchased is one of the largest in all of Europe. While the exact whereabouts of the vault are unknown, it reportedly is within the M25 road and can allegedly hold up to 2000 metric tons of gold and other precious metals. Mark Buncombe, head of commodities... Continue Reading

Demand For Gold Soaring

The gold market has seen some solid gains since the beginning of this year. Investment demand for the yellow metal could be attributed to numerous factors including the economic slowdown in China, deflationary risks, ongoing geopolitical tensions, uncertainty over U.S. interest rates, and more. We would certainly have no trouble laying out a very bullish case for gold at this point, but it doesn’t matter what we think, it only matters what you think. We would make the argument that gold has many reasons to... Continue Reading

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3 Questions to Be Asking Yourself Right Now

Global markets could potentially see significant volatility soon, and U.S. stocks could see the multi-year bull market come to an end any day now. Are you prepared? Investors will likely have to grapple with several key issues in the coming months and years, and now may be a good time to reflect and ready yourself for what could lie ahead. Here are three key questions you should be asking yourself right now, and if you don’t have the right answers, it may be time to take... Continue Reading

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Don’t Buy Gold Because It Yields Nothing and Other Nonsense

Gold pays zero dividends. The yellow metal provides no income and in fact, may even cost money to hold. Does that mean you shouldn’t include gold in your portfolio? Some analysts argue against physical gold ownership for these very reasons. Why take $20,000, for example, and buy physical gold bullion when instead you could buy a dividend paying stock or put that capital to work in a savings or money market account? We feel it is important to address such an argument, and while we must... Continue Reading

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Today’s Jobs Report Another Sign of Underlying Weakness

It’s the first Friday of the month and today has brought one of the most key pieces of economic data released each month in the employment situation report. The U.S. Department of Labor reported the country added just 160,000 jobs in April as the unemployment rate ticked up to five percent. This jobs number was significantly less than the consensus estimate of 200,000 jobs created. What might this data tell us? Despite much of the positive talk and rhetoric currently being circulated, the economy may... Continue Reading

Market Timing and the Gold Market

Many investors attempt to “time the market.” What do we mean by this? We mean to say that many people look to outperform the market by trying to time buying and selling decisions based on various factors such as economic forecasts, valuation studies, or technical analysis. While those that can do this successfully on a consistent basis may enjoy significant financial rewards, the reality is that very few investors are able to achieve any consistency. In fact, looking at mutual funds is a great example.... Continue Reading

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Gold and the Presidential Cycle

According to the theory of the Presidential election cycle, U.S. stocks experience weakness in the year after the election. The cycle then may revert back to stronger equities until it is time for the next election. What may drive initial weakness in equities followed by a rebound? The answer is reforms, new policies and a degree of uncertainty. Think about it this way: When a newly elected President takes office, he or she may look to deliver on plans discussed on the campaign trail, even... Continue Reading

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