Month: April 2020

Watch and listen to learn about the golden treasures that sank alongside the Titanic

Gold on the Titanic: Did You Know?

Narrator (00:05):
On April 10th, 1912 the RMS Titanic embarked on its journey from Southampton, England to New York City. Five days into the voyage, the Titanic sank and one of the deadliest commercial Marine disasters in history. Millions of dollars worth of artifacts, many belonging to wealthy passengers, were lost at sea. Items included paintings, books, and even a luxury car. While many of the passengers possessions are still in the North Atlantic Ocean, victories and discovery efforts have brought back mesmerizing tokens of the Edwardian period. Gold jewelry, broaches, pocket watches, and other accessories have been recovered over the years. A traveling showcase that commemorated the 100 year anniversary of the sinking featured lavish golden jewelry from the wreckage. These artifacts carry extraordinary stories from the Titanic’s passengers. In 1994, a travel bag was recovered with a gold locket belonging to passenger Virginia Clark, who was on a belated honeymoon trip with her husband, Walter. The bear was returning to America on the Titanic to celebrate their two year old son’s birthday, but only Virginia survived the sinking.

Narrator (01:13):
Other discoveries have been made apart from the wreckage. A gold cigarette case connected to the Titanic was discovered in an English homes cupboard, seemingly forgotten over 70 years after the sinking. This case was gifted to Ernest Brown, a crew member on board the rescue ship, RMS Carpathia, for saving Sir Cosmo Duff Gordon and his fashion designer wife. Mr. And Mrs. Duff Gordon were later accused of bribing their way off the sinking ship. Inside the case, an engraving reads in remembrance of kindness. These artifacts and the stories behind them give a glimpse into the rich history surrounding the RMS Titanic. Call the number on your screen. If you’d like to learn more about gold’s place in history and gold’s place in your portfolio.

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Millions of Americans are watching the markets with anxious eyes, looking for any sign of a rebound. Their retirement funds and families’ futures are tied up in a system that has been dealt a severe blow. It’s only natural to hope that the markets will rebound in a permanent way.

However, it is important for Americans to not blindly jump back into the markets on the desire for a sudden return to strength. While having hope that this will end soon is important, prematurely declaring victory can be disastrous. There is an old saying that applies to these times: “Hope for the best but prepare for the worst.”

As recently as the end of last year, even before the current crisis, Fidelity Investments reported that people age 55 to 75 years old had over-allocated stocks in their portfolios.

This overexposure could have left many vulnerable to disastrous consequences in the recent downturn. An important lesson to take away from these losses is to diversify, diversify, diversify.

Making smart moves and not going “all in” on stocks can make a huge difference in the upcoming tumultuous months.

The worst may still be yet to come.

Analysts at Bank of America have predicted “the deepest recession on record.” Major credit agency Fitch Ratings forecasted a “deep global recession” 10 days before the recent crash. Hedge fund investor Dan Niles, who called the original crash about a month before anyone else did, still sees another 30 percent decline before stocks hit the bottom.

These multiple warnings should be paid attention to. Even if the stock market climbs upwards again for a couple of days, it’s not necessarily going to be permanent. Again, “Hope for the best but prepare for the worst.”

Bear market rallies can be deceptive.

Financial insiders sometimes refer to the smaller rallies that exist in deeper periods of decline by the charming nicknames of “sucker rallies” and “dead cat bounces.” The rallies seem comforting, like the beginning of a long-term recovery, but don’t be fooled into putting the cart before the horse. Jumping back in too early could get you snagged into an even worse spot.

The 2008 recession saw similar flash rallies during the long course of the drop. MarketWatch reports that the S&P 500 saw six separate rallies of 9 to 19 percent from September 2008 to December 2008, during the midst of the crisis. The Great Depression of almost a hundred years ago also saw multiple false starts to recovery. So when making moves with your portfolio, remember that the market just flexed its weaknesses. Don’t be caught off guard if it flexes them again.

The post Why Americans’ Portfolios Are Still Vulnerable appeared first on U.S. Money Reserve.

Where there’s data, there’s insight. Learn what gold prices tend to do around election time and the financial lessons we can apply before we head to the ballot box on November 3, 2020.

How Do Presidential Elections Affect Gold Prices?

According to TV station KOMO, gold prices typically soar in the month of September before Election Day and drop in the days leading up to Americans going to the polls in November. On average, gold prices continue to decline until the following January.

After George W. Bush was re-elected in 2004, the price of gold climbed about 7% in the month after he won and rose 4.8% overall that year. After Barack Obama was elected in 2008, the price of gold jumped 17.8% by the end of the year.

In the wake of the 2016 victory of President Donald Trump, the price of gold dropped in November and December. In November 2016, the price went down 7.6%; the next month, it decreased by 1.8%. On the day after Trump scored his win, the price of gold surged nearly 5%.

In a non-election year, gold usually commands a higher price during 9 of the 12 months, KOMO says.

“This finding alone suggests that gold prices are affected by the assumed instability of the country’s political and economic future during the year in which a new president is named,” according to KOMO.

In the non-election years 2017 and 2018, the price of gold remained fairly steady. But in 2019, as the presidential election drew closer, the price of gold took off. Last year, the price started at around $1,290/oz. and ended at $1,530/oz., a difference of more than 18%.

Where Could Gold Prices Head Before and After the 2020 Election?

The National, an English-language publication in the Middle East, says that “by default,” gold should be a safe-haven asset in the months before the 2020 presidential election. By comparison, U.S. Treasuries won’t be as attractive amid the low-interest-rate environment, The National reports.

Peter Schiff, CEO of Euro Pacific Capital, told Kitco News that if President Trump loses the 2020 election and Joe Biden or Bernie Sanders wins, the price of gold could surpass $2,000/oz. this year. That could happen by election night, he says.

In February 2020, Citi predicted a spike in gold prices over the next 6 to 12 months. Citi believes the price could hit $1,700/oz. during that period. But Citi analysts did say gold could cross the $2,000 mark within 12 to 24 months.

In January 2020, ahead of subsequent economic turmoil, Barron’s reported that the presidential election and continuing trade tensions between China and the U.S. could push up gold prices.

“There will be a lot of volatility in markets ahead of the elections, and that will be helpful for gold,” Rohit Savant, director of research at CPM Group, told Barron’s.

In March 2020, CPM Group predicted gold prices would maintain an upward trajectory throughout the rest of the year and reach new record highs “in the medium term.”

According to Kitco News, gold market fundamentals—including supply, demand, and central bank demand—“are well-positioned” in 2020 to support higher prices.

“We see the next five years, maybe longer, as being particularly hostile to consumers, investors, and small enterprises for a variety of reasons and thus a time when holding gold makes more sense than it did in [seemingly] more placid periods such as the late 1990s,” CPM Group said in a report.

Track Gold Prices as the Election Looms

While there are identifiable trends in gold prices before and after presidential elections, the ultimate impact on gold prices is yet to be determined. Any number of political and social changes could throw a wrench in otherwise predictable trend lines. Consult trends but track gold prices for yourself with one of these five helpful tools. Monitoring the most recent prices can help you decide exactly when it feels right for you to buy gold.

No one knows which candidate the American people will put in the White House this November. What you do know, however, is where you can put your wealth to help protect it from uncertainties ahead. Request your free Gold Information Kit to learn more.

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