Gold Was up This Week and Reached $1,300 Again
After a couple weeks of resistance, gold was up this week and closed Friday just above the important $1,300 mark. Gold climbed steadily from the 4 week low it hit last week despite some slightly more positive global economic growth data. Geopolitics was a drive for gold this week with President Trump threatening to cancel the Iran nuclear deal, more North Korea talk, and difficulties with Brexit negotiations.
The dollar index was down this week after dovish signals from the Federal Reserve. Fed officials seem undecided on whether to raise interest rates in December. There were some misses on U.S. economic growth data Friday that drove gold up as well, although world stocks showed some strength. Inflation targets showing growth were not quite there, which further undermined the dollar.
What this means for investors: Many investors are still seeing long term bullishness for gold. Precious metals have been resilient all year, and have have enormous long term advantage.
Is Silver a Better Buy Right Now than Gold?
Silver as well as gold was up this week. Silver closed the week just short of $17.50. Its rally was due to many of the same factors as gold.
Silver has outperformed gold so far this month. The gold to silver ratio is sitting at 77, which means it would take 77 ounces of silver to equal one ounce of gold. Some analysts think it could keep outperforming gold for the time being.
What this means for investors: Silver is more volatile than gold, and this volatility is a big attractant for some investors. However it is still a safe haven asset as well, and its cheaper price draws safe haven buyers as well. Diversifying a portfolio with gold and silver can make it more robust, and with silver’s recent strength, it’s a perfect opportunity to begin or increase silver holdings.
Alarm Bell Sounding On Stock Market?
For the past year, the stock market has been hitting new highs. Many investors have been expecting the correction to come any day now, and finding to their chagrin that this isn’t the case. The market is certainly overextended though. While there still seem to be highs to reach, it would be advantageous to get into precious metals now before this inflated market reaches the tipping point.
What this means for investors: For more on the overextended market, watch the video on this page.
Germans Are Becoming Biggest Gold Investors
China is the biggest government buyer of gold, but on an individual level, Germans are the biggest buyers. They quietly took over the lead last year according to the World Gold Council (WGC) as Germans shifted approximately $8 billion into gold coins and bars. Particularly after the 2008 crash, investors around the globe scrambled to safe haven assets. As central bankers dropped interest rates, German bond yields turned negative and gold became the safe haven of choice. The demand doesn’t seem to have stymied much either given the WGC’s report.
What this means for investors: Since the financial crash of 2008, Germans have been increasing their gold holdings partly because of distrust of the banking system. The German Bundesbank has also significantly increased gold holdings after it recently finished repatriating its gold held overseas. Germany is the economic power house of the European Union, and has to a large extent been the dam that held back more dire economic woes that arose from various EU member states’ debt crises and banking crashes. German investors don’t want to be caught unprepared again when there’s another crash and are preparing now with gold.
Senate Seat Contender Kelli Ward to Speak Tuesday Alongside Conservative News Talk Host Laura Ingraham
Kelli Ward is running for Jeff Flake’s U.S. Senate and is holding a speaking engagement Tuesday. Come out and hear her along with former Congressman J.D. Heyworth and Fox News anchor and national radio syndicate Laura Ingraham.
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