Now may be a good time to go long, but not across the board. Here’s why… submitted by Morris Hubbartt Super Force Signals A Leading Market Timing Service We Take […]
The post Trader: Something Just Happened With The Gold Mining ETFs That Shouldn’t Happen appeared first on Silver Doctors.
Mike Adams says get ready for coronavirus chaos, looting and violence. Here’s why… by Mike Adams of Natural News (Natural News) In a stunning admission that the speed of the […]
The post Mike Adams: Los Angeles Is Lost! NO MORE TESTING For Covid-19 – Containment Impossible – 140,000 To 420,000 May Die appeared first on Silver Doctors.
While stocks dominated headlines, gold quietly performed
“For twelve consecutive years, gold was up every single year whether there were inflation fears, deflation fears; strong dollar, weak dollar; political stability, political instability. It didn’t matter – strong oil, weak oil. . . Gold went up for twelve years. . . When gold embarks upon its next move, I believe that you will see that long wave take gold relatively quickly, but it will be measured in years, up to a $3000 to $5000 target that I believe is fundamentally justified based on the facts we have today.” –– Thomas Kaplan, Electrum Group (Bloomberg’s Peer to Peer Conversations with David Rubinstein)
1. Gold has produced positive returns in 16 of the last 19 years.
2. Gold’s average annual return compounded since 2001 is 9.47%. (2001-2019)
3. Gold’s appreciation over the last twelve months (from 3/20/2019) is 14.2% – even with the recent correction taken into account.
4. Gold has been a portfolio stalwart. A $100,000 investment in gold in January 2001 would be worth about $550,000 today. At gold’s peak in 2011, it would have been worth over $700,000.
5. Gold does not have a political preference – something to keep in mind as we move through another presidential election year. Its ascent has occurred during the terms of four presidents – two Democrats (Bill Clinton and Barack Obama) and two Republicans (George Bush and Donald Trump). Its largest gain – 31.92% in 2007 – came under a Republican (Bush). It’s second-largest gain – 29.24% in 2009 – came under a Democrat (Obama).
6. Gold is not swayed by who leads the Federal Reserve. Its ascent has occurred during the terms of four different Fed chairmen with four distinctly different styles and approaches to monetary policy – Alan Greenspan, Ben Bernanke, Janet Yellen, and Jerome Powell – and under a variety of economic circumstances and events.
7. Contrary to popular belief, gold does not need inflation to appreciate in value. In 2001 the average inflation rate was 2.8%. In 2018, it was 2.4%. Between those bookend years, the inflation rate exceeded 3% only three times. Its lowest reading was 0.1% in 2015. In short, some of gold’s best years were the result not of inflation but disinflation – a stubborn circumstance that has carried over to the present.
8. Gold’s price history is only loosely connected to that of the dollar. In January 2001, the U.S. Dollar Index stood at 113.39. It now stands at just under 102 for a decline of 10% during the period. The price of gold, on the other hand, rose 5.5 times – a pace well ahead of the dollar’s performance against other national currencies.
9. The 21st century has been gold’s century, not the stock market’s. In January 2001, the Dow Jones Industrial Average stood near 9,850. With its recent sharp decline taken into account, it is now just over the 19,000 mark for a gain of roughly 193%. By contrast, gold is up over 550% over the same period (from roughly $270 to $1500 per ounce). While stocks dominated headlines, gold quietly performed.
The question becomes whether or not an investment that has performed so well in the past is likely to perform equally well in the future. Though nothing in the world of finance and economics is certain, we rest the bullish case for gold on the understanding that none of the economic and financial system problems that created a positive price environment for gold over the last nearly nineteen years have been removed from consideration. In fact, a case could be made that they have only intensified – and dangerously so.
Thus, we return where we began for an answer – to the well-conceived forecast from Electrum Group’s Thomas Kaplan at the top of the page. (The interview is highly recommended.) Perhaps a decade hence, we will post another chart at USAGOLD similar to the one you now see at the top of the page. At $5,000, by the way, the appreciation from the current $1500 price would amount to roughly 330%. Thomas Kaplan, we add in conclusion, began his investment career with $10,000. He is now a billionaire. Gold was priced at $1280 per ounce at the time of the Bloomberg interview.
–– Michael J. Kosares
3/21/2020
Ready to begin or add to your precious metals holdings?
DISCOVER THE USAGOLD DIFFERENCE
ORDER DESK: 1-800-869-5115 x100/orderdesk@usagold.com
ORDER GOLD & SILVER ONLINE 24-7
Disclaimer – Opinions expressed on the USAGOLD.com website do not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell any precious metals product, nor should they be viewed in any way as investment advice or advice to buy, sell or hold. USAGOLD, Inc. recommends the purchase of physical precious metals for asset preservation purposes, not speculation. Utilization of these opinions for speculative purposes is neither suggested nor advised. Commentary is strictly for educational purposes, and as such USAGOLD does not warrant or guarantee the accuracy, timeliness or completeness of the information found here.
There is good news to report on effective treatments. President Trump is cutting red tape at the FDA to get them approved fast.. Greg Hunter gives The Weekly News Wrap-Up for […]
The post Greg Hunter: China Virus Treatments Coming, Economic Damage Done, Ponzi Ending appeared first on Silver Doctors.
Such restrictions on free movement and the suspension of basic rights are unheard of during peacetime… Editor’s Note: This is Part II of “A Crisis Is A Terrible Thing To […]
The post The Ease And Speed Of Governments’ Reactions Should At Least Make Us Stop And Think appeared first on Silver Doctors.
TRILLIONS being injected directly into the financial system. This is all going to unleash inflation… by Graham Summers of Gains, Pains, & Capital The coronavirus has burst the Everything Bubble. […]
The post Here Comes The Coronavirus Inflationary Storm appeared first on Silver Doctors.
Baltimore is among a growing number of cities and counties dropping prosecution of petty crimes during the Covid-19 pandemic… by Simon Black of Sovereign Man Well, at least there’s a […]
The post Some Cities Stop Arresting Minor Criminals Due To Coronavirus, Other Places Warn Of Murder Charges For Infected People Who Break Quarantine appeared first on Silver Doctors.
With accelerated sell-offs, you get funds busting and lots of margin calls. This starts impacting on gold and other liquid assets like silver. Inevitably this is… by Jordan Roy-Byrne via […]
The post Expect a Rip-Roaring Bull Market in Gold & Silver appeared first on Silver Doctors.
VOIMA/Jan Nieuwenhuijs/3-19-2020
“Gold is a store of value. The media, however, frequently exaggerate short-term swings in the price of gold. This month they first wrote ‘gold lost safe haven status’ when the price declined for a few days, only to report ‘gold gets groove back’ when it was up for half a day. Due to gold’s inherent properties—it’s physical, can’t be printed, has no counterparty risk, etc.—gold has preserved its value like no other currency for thousands of years. Why question its safe-haven status based on short-term volatility? It’s true that from the moment we left the gold standard, gold has become more volatile. Still, in general, its purchasing power has increased ever since.”
USAGOLD note: Another well-conceived piece of analysis from Mr. Nieuwenhuijs ……