Author: Gold News Club

Stocks finished the day after Thanksgiving moderately lower. Gold, on the other hand, finished the day with strength, up nearly $9 per ounce on the session. Of course, lower stocks and higher gold could be due to a wide variety of reasons. The day could, however, be indicative of trends to come.

The day’s upside in gold puts a little distance between the market and chart support in the $1450 area. Another dip towards $1450 could, however, see further buying interest and perhaps even a major reversal in gold’s recent trend lower. The yellow metal has been trending lower for the last several weeks now, after failing to revert to previous upside pressure that took prices well above the $1500 level, albeit briefly. For those paying attention, any significant dip in the price of gold could be very welcome opportunities to add more gold to their portfolios. There are several catalysts that could take the gold market sharply higher in the years ahead.

Here are three reasons that a large allocation in gold may be useful ahead:

1. The global economy could be near another recession: Key economic data in recent months has shown a clear trend lower towards weakness. The U.S. and China, the globe’s first and second-largest economies, have both shown signs of weakness that could spell economic trouble ahead. The next global recession would not surprise many, given the length of the recent expansion and stock bull market.
2. Central banks are easing again: The U.S. Fed recently lowered its Fed Funds rate for the third consecutive time in a short overall period. Other global central banks have acted in a more aggressive manner, quickly cutting interest rates in order to try to boost growth. If central banks continue to cut further, it may not be long until fresh rounds of QE are seen. Ultra-low rates and QE not only add to sovereign debt but may also weaken hard currency values.
3. Debt: Global debt levels are not sustainable, at least not for the long-term. The U.S. remains under a heavy debt burden, and fresh QE measures could make that debt even worse in the years ahead. At some point, the debt will have to be dealt with. Barring any fresh solutions, the only way to potentially handle the rising debt levels could be a currency debasement.

Of course, there are numerous other factors that could also potentially play a major role.

The end of the current equity bull market could lead to capital looking for alternatives. A Trump impeachment or election loss could lead to the same. The ongoing U.S./China trade war, if it continues, could also lead to risk aversion, lower equities and even recession.

Whatever the actual catalysts may be, the gold market could cover a lot of upside in the months and years ahead. As the only real form of money there is, gold could stand to see strong upside as further QE and borrowing reduces the value of fiat currencies. Not only that, but many governments could have little or no choice but to debase their currencies if debts rise further. Some might suggest that the writing is on the wall. It is up to you, therefore, to act.

Building a significant allocation in gold has never been easier, and perhaps never more important. Speak with an Advantage Gold account executive today about the potential benefits of gold ownership and to learn more about the key role it may play in the years and decades ahead. Our associates are here to answer any questions you may have and can even show you how simply it is to build a strong allocation in gold using an IRA account.

Don’t wait for the next major stock market collapse or for gold to take off without you before acting. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.

The post Buy the Dips appeared first on Advantage Gold.

The gold market is off to a slow start this week as stocks and risk assets see a heavier bid as the new trading week gets going. Although the news and headlines may sound a bit rosier today, for the most part the news simply appears to be more of the same that has driven equity markets for several months now.

Over the weekend, China released a document that in part discussed the importance of intellectual property rights.

The report also noted that those rights must be protected. Intellectual property rights have been a major sticking point in the ongoing U.S./Chinese trade negotiations for some time now, and an agreement could help pave the way for a phase 1 agreement being reached, possibly before the end of the year.

In addition to the Chinese document, Robert O’Brien, a U.S. national security advisor, said over the weekend that a phase 1 deal could potentially be reached before 2020. O’Brien did, however, also reiterate the notion that the U.S. would not be willing to turn a blind eye to other Chinese activities, including Hong Kong unrest and the South China Sea. His comments, combined with the Chinese paper, appear to be fueling appetite for risk as the new trading week gets under way. It is important to keep in mind, however, the fact that this is not the first, nor likely the last, time that positive commentary has driven market action. This has happened several times over the previous months, and each time the trade war has again weighed on stocks and overall investor sentiment. This time may prove to be no different for the week ahead.

As stocks rise today, the gold market is under moderate pressure.

Spot prices are slightly lower in mid-morning trade, falling by some $2.30 per ounce to $1458.80. Price action is fairly slow thus far today, however, and the market may trade sideways the rest of the session barring any other new developments on trade. The bulls have thus far been able to hold the $1450 region, but another test of that area could be seen this week. A breakdown below $1450, on a closing basis, could spell trouble ahead for the yellow metal as more bears could look to get into the market on further weakness. Another successful defense of that area, on the other hand, could potentially assist the bulls in taking prices back towards the $1500 area.

The gold market has been in a downtrend on the daily chart for several weeks now, and any significant rallies could be sold into. The bulls need to take prices back above the psychologically key $1500 level in order to attract further buying interest. The bears will look for a close below $1450 and then the $1400 area to confirm further downside.

The current state of range bound price action in gold could take some time to work itself out. Although stocks have been moving further into fresh all-time high territory as appetite for risk has increased, there are still several, major issues that could keep gold on the offensive in the months and years ahead.

The post The Week Ahead appeared first on Advantage Gold.

U.S. stocks are moderately higher in early Monday action to kick off the new trading week. Positive trade developments have been tagged as the primary catalyst for stronger equity markets this morning. Over the weekend, China reportedly released a document that discussed one of the major sticking points of trade talks-intellectual property rights-and called for more protection of those rights. In addition to that, comments from U.S. national security adviser Robert O’Brien also may be playing played a role. O’Brien reportedly stated that a phase 1 deal may still be reached before the end of the year, and he reiterated the notion that the U.S. would not, however, turn a blind eye to other developments involving China, such as ongoing unrest in Hong Kong or the South China Sea, or any other geographical area that China may have operations.

Over the weekend, pro-democracy elections in Hong Kong produced a sound result.

The pro-democracy opposition won many seats in Hong Kong that could help elect the next legislature and chief executive of the region. The vote was viewed as a defeat to Beijing, which has pushed for controls and a crackdown on protesters.

American investors are also cheering on some positive M&A news. Stock brokerages Morgan Stanley and TD Ameritrade have reportedly agreed to join forces, with Morgan paying some $26 billion in stock for TD. In other news, eBay is reportedly close to a deal to sell its ticketing business, StubHub, for $4 billion to Viagogo.

Although some of the weekend’s news may be genuinely positive, a lot of the positivity seems like more of the same.

Stocks and risk assets may continue to move higher on more of the same, but unless things really change, will likely decline once all is said and done. That may be when the gold market finally makes a sustained move higher. Of course, the ideal time to get involved is before gold starts moving sharply higher. Doing so has never been easier, and perhaps never more important.

Simply pick up the phone and speak with an Advantage Gold account executive today about the potential benefits of gold ownership and to learn more about the key role it may play in the years and decades ahead. The importance of gold has never been higher, and additional central bank easing may only serve to add to its importance in the years ahead.  Our associates are here to answer any questions you may have and can even show you how to set up an IRA account to build a significant allocation in the metal.

Buying gold for less than $1500 per ounce is favorable to paying $2000 per or more per ounce. The time to act is now. Don’t wait for the next major global recession to take hold and send stocks sharply lower. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.

The post Heard This Before appeared first on Advantage Gold.

Wall St. has seen major stock indexes make fresh all-tine highs recently. Stocks have pulled back a bit in recent trade, however, and are lower again today. The primary reason for the lack of upside follow through could be a lack of progress in U.S./China trade negotiations. Recent headlines on trade have taken a slightly more mixed tone, while ongoing unrest in Hong Kong could also potentially upset things further

The U.S. House of Representatives on Wednesday passed two bills that may have upset Beijing.

The bills were supportive to Hong Kong protesters and those who are guarding human rights. The latest debacle between the globe’s first and second-largest economies could potentially continue for quite some time. Over a year has gone by already, with little tangible progress to show for ongoing talks. The angst surrounding trade talks had the S&P 500 as well as the Dow Jones Industrial Average set for their longest losing streak since August. The tech-heavy Nasdaq was set for its largest two-day decline in over a month.

The major stock indexes have all rallied as earnings have been largely supportive and as hopes for a “phase 1” trade deal have been on the rise. AS earnings season winds down, however, and as hopes for a trade deal fade further, equity markets may find themselves lacking any significant bullish catalysts to take prices even higher. A period of sideways to lower trade could follow, and the markets could become increasingly vulnerable to a widespread sell-off if no upside is seen for an extended period.

Adding to ongoing concerns over trade, the Trump administration is now also considering action against the EU as the auto tariff window has now closed.

An investigation into the EU could potentially clear the road ahead for non-national security import duties to be paid to the U.S. Whatever the case may be, a new trade war with the EU is not likely to assist equity markets at all, but rather could fuel a rising degree if overall risk aversion in the marketplace that could possibly benefit gold and other alternative asset classes.

As the potential for a trade spat with the EU looks increasingly possible and as hopes for a long-term U.S./China deal fade, now may be the ideal time to build a significant allocation in alternative asset classes that could potentially outperform during the next global recession. Physical gold must be at or near the top of the list for choices.

Unlike other asset classes, gold carries zero counter-party risk. It cannot default, declare bankruptcy or otherwise hose investors. The gold market not only comes with significant and unlimited upside price potential but may also provide an effective hedge against a declining dollar, lower stocks and accelerating inflationary pressures. There is simply no reason that gold should not make up a significant allocation of your portfolio.

Adding gold to your holdings has never been easier, and perhaps never more important than it is today. Just pick up the phone and speak with an Advantage Gold account executive today about the potential benefits of gold ownership and to learn more about the key role it may play in the years ahead. Our associates are here to answer any questions you may have and can even show you how to build a significant allocation in this key asset class using an IRA account.

Don’t wait for the next major global recession to hit stock prices or for gold to take off without you before acting. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.

The post Trade Talks Maybe Not Going So Well? appeared first on Advantage Gold.

Bloomberg/Justina Vasquez/1-12-2020

“A volatile week ended in favor of gold investors, with geopolitical tensions reigniting haven demand for the metal.”

USAGOLD note:  This Bloomberg piece reinforces the point made in the USAGOLD note to the post immediately below. It is not really a matter of ‘sticking to one’s guns’ as it is a deeper understanding of the ever-present need to hedge uncertainties of which geopolitical tensions are just one.