The Macro Market Wrap Up With The Mad Genius, Vol. 30

The next topic in my 2018 forecast was owning gold. I first made the case for renewed gold ownership in May 2017, here. I recommend to read it in order to fully understand the role of gold as well as the scope of what is currently transpiring in the world that makes gold so worth while as an investment.

Last January I renewed my call for owning gold, and let’s remember that until the last 40 years or so, traditional portfolio allocation was between 5–20% of your investable assets in gold bullion coins and gold bullion bars. Numismatic coins are something else and I don’t recommend them. Also, let us remember that gold serves functions as both a commercial or industrial metal as well as a monetary metal.

So gold started the year in 2018 at $1351.70 per ounce, and it traded in a $50 range from $1335-$1385 until mid-May when it fell to a low in mid-August at $1320. Gold ended the year down by $68 at $1283 per ounce, or 5%.

My forecast was pretty bold on gold (and silver), and I said that it would test the previous all time high of $1948/ounce set in 2011. That obviously didn’t happen and I attribute that to the economy retaining more strength for a longer period of time than I anticipated. That also doesn’t mean the case for gold is no longer valid and that my long term forecast is invalid. The fundamentals for gold ownership have strengthened over the last 12 months.

Along with gold we always like to examine silver, and to make a long story short, my forecast was for $50 silver, which would have retested the 2011 highs. That also didn’t happen. For both metals, watch for my 2019 forecast in the next few days.

And with that, thanks for reading Volume 30 of The Macro Market Wrap Up With The Mad Genius. If you have any questions, leave those in the comments. #Energy & #Bitcoin are next, and then I’ll get to my 2019 forecast. Remember…there is always a bull market somewhere in the world, and on the opposite side of crisis there lies opportunity.

#economics #gold #silver #investing #yearinreview2018