Gold Spikes To A 6-Year High Above $1,550

With election season approaching, look for Trump to do everything in his power to boost the economy and prevent a recession or stock market collapse that would threaten his re-election. The President continues to pressure the Federal Reserve for even lower rates and new rounds of economic stimulus. This is all bearish for the dollar and very bullish for gold.

Given the above outlook, I am revising our 2019 gold price forecast from $1,600 to $1,750. We have positioned Gold Stock Bull subscribers in quality gold mining stocks well ahead of this latest surge higher. While gold is up an impressive 19% in the past 3 months, we have multiple mining stock positions in the GSB Portfolio up 80% or more in the same time period.

Although the technical charts suggest a near-term pullback could be in order, I believe gold and silver prices are headed much higher over the next few years. Thus, I view any pullbacks as buying opportunities and will continue to add physical metals and junior/mid-tier mining stocks on each dip.

I believe we will see capital rushing into this undervalued sector once it is realized that all the juice has been squeezed out of the stock market. FED policy tools will have a diminishing return and there just isn’t much room left to lower rates without taking them negative, an emerging trend in the bond markets.

There is now more than $17 trillion in negative-yielding debt. And this is not just government debt, as the past few weeks have seen the universe of negative-yielding corporate bonds more than double to $1.2 trillion.

Imagine just how ludicrous the situation has become…

What if I said I wanted to borrow $100 from you and pay you back $99 five years later? Would you do it? Of course not. Yet, this is happening right now with nearly $17,000,000,000,000 of bonds with negative yields. It’s not going to end well.

Bitcoin is also acting as a safe-haven asset or form of digital gold. The price has more than tripled in 2019 and just spiked $500 higher to $10,500 long with the price spike in gold.

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Disclaimer: I am not an investment advisor. This is just my personal opinion. Invest at your own risk.

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