On July 19 of this year, the price of gold on the spot market hit a key milestone, trading above $1,400 for the first time since 2013. This milestone brought gold back into the spotlight among financial analysts and many have called this the beginning of a rare bull market in precious metals.
It has only taken us another twelve trading days for the price of gold to top $1,500. This is the type of dramatic move that should catch every investor’s attention.
Gold up More than $450 Per Ounce Since 2016
In 2016, the price of gold bottomed at $1,046 per ounce. Last May gold reached an annual low of $1,267. Gold’s high today of $1,510 marks a nearly 20% increase from the 2018 low. By any measure that is a bull market.
The story in silver is even more dramatic. Silver’s high today marked a near 25% increase from its low last fall of $13.68 on the spot market.
Bloomberg’s Senior Commodity Strategist, Mike McGlone, recently announced, On the cusp of closing above key resistance, upside potential in the silver price has rarely been more extreme,
he wrote. Near the end of July, silver is set to hold above its 50-month average for the first time in six years.
Only the Beginning of the Gold Bull Market?
For the past year, we have encouraged investors to add rather than reduce their physical gold and silver positions. With two generations of precious metals experience, we identified early signs of a bull market and encouraged investors to take a position even ahead of eye-catching moves. We believe this could just be the beginning of a much higher move in metals.
Stocks have soared over the past decade and reached a point where it is difficult to find long term value or protection in stocks or mutual funds; at least a great deal of the current stock valuations are directly attributable to artificially low-interest rates. Interest rates in Germany and France are negative.
However, this looks to be only the beginning. Stocks are selling off in dramatic fashion and both gold and bonds are sending danger signals to the stock market.
First, let’s look at bonds: rate cuts from the Fed usually are bullish for stock and bearish for bonds. However, since the recent rate cut, we have seen the exact opposite effect. There is massive open interest in the bond market even amid falling yields.
Gold (and silver) are globally viewed as an alternative currency that cannot be manipulated by global interest rates. We have seen a dramatic increase in demand for gold and silver bullion. Demand for the US minted coins are reportedly up over 75% in the second quarter of 2019 over the second quarter of 2018.
If you think this is dramatic, just wait until a large percentage of investors begin to absorb losses in their retirement accounts and realize the need for protection in gold and silver amid destructive monetary policy, swelling government and corporate debt, and an unstable banking system.
Global Turmoil Highlights Necessity of Owning Gold and Silver
We are in a full-blown currency war with China, now labeled an official currency manipulator.
Our own Federal Reserve is cutting interest rates as we return to monetary policies eerily similar to the post-2008 crisis. We are competing with China and other central banks for a cheaper currency. That is why wise investors are buying gold and global banks are adding to their gold reserves.
We are seeing increased hostility from Iran and missile tests in North Korea.
Can your portfolio withstand another stock market crash?
Why You Should Call Midas Gold Group Today
Midas Gold Group offers sound practical advice on diversifying your investment portfolio or even your IRA with physical gold and precious metals.
When stocks fall and currencies fall gold tends to go up and silver tends to go up.
Midas Gold Group is the only physical gold dealer endorsed by Dr. Sebastian Gorka, former National Security Advisor to President Trump. Midas Gold Group is a veteran-owned company with an A+ rating with the Better Business Bureau. At Midas Gold Group, you will never deal with pushy commissioned salespeople. We offer sound strategies and solutions, not sales pitches.
Whether you are new to owning precious metals or a seasoned buyer, we can help you with all of your precious metals needs.
