Gold Soars Past 5-Year Highs – It seems the cat has been let out of the bag, with gold prices breaking out of 5-year highs this week on the heels more Federal Reserve theater with President Donald Trump. At this point, it’s clear the central bankers know they will need to cut rates, so they are just holding out and stalling as long as they can to slow the drastic outcome that could result in the short term.
Anyone taking note of the Recession recognizes that a slowdown continues to be ongoing for the past 6 months minimum. Central banks around the world from Australia, to India, China, the European Union, and now Russia, have all been moving to decrease rates in order to keep their economies from tanking for now.
Even funds manager BlackRock around australia has become shorting the Australian Dollar since it foresees the Australian Central Bank lowering interest levels right down to a ground-scraping .5%.
Silver Not Lagging Far Behind Gold – Silver is yet another great option, rising 3% before week and breaking key resistance. Silver is another fine choice to consider since there is an ongoing shortage of silver miners in the business, meaning ones retail investors head into silver in large numbers you will have an absence of supply that can play a role in huge upside within the shiny metal.
Additionally, Silver is wonderful as it is sufficiently small for barter/exchange for products or services in an emergency, plus it qualifies for precious metals IRAs. Concurrently we see the disappearance of any yield curve inside the Treasuries markets, as now the 3-year bond yields more than all other bonds aside from the 30 year. This mass bond buying is clearly being carried out by large institutions to keep yields so low that individuals will never be ready to park their cash in a safe place, but instead keep it on the stock exchange up until the central bankers all finally run out of tricks and decide to let it fall
Global Political Instability on the Rise – With all the recent posturing and threats made on sides in the current US/Iranian conflict in the Strait of Hormuz, the buying price of oil could be expected to view a rise since the body of water sees 10 – 15% of total world oil production pass through on a yearly basis. It seems like the West does have its heart set on some type of wphxrd military confrontation as the rhetoric increasingly turns to missiles fired and tankers attacked.
No one recognize how this whole thing will experience, however with Recession weakness and increasing political strife, it can make even more sense to hold precious metals, particularly with the recent bursts in price to get rid of out of 5-year selling prices.