Precious Metals News

Don’t Wait to Buy Gold

GoldFrequently, you’ll hear professional traders and investors say they’re going to buy gold when it drops to a certain price. Less frequently, you’ll hear them comment they’ll enter the gold market when it reaches a certain price on the way up.
 
In the first instance, traders and investors are waiting to buy gold in an attempt to maximize profits. They’re trading gold the same way (they hope) they trade stocks. By analyzing technical and fundamental indicators, they’ll hook on to the yellow metal when it reaches a bottom.
 
In the second instance, they’re jumping on to a moving train, so to speak. The idea here is, when gold exhibits clear signs of an upward trend, smart investors will be wise to hook into that trend. So these traders look for gold to push past an established price point. Once past that point (that resistance), gold will be well on its way.
 
The flip side of this moving-train approach is, just as with a stock, and despite fundamental and technical indicators, gold could decline unexpectedly rather than take off for the stratosphere. More often than you might imagine, the best professional guess about the direction any commodity or stock will take is simply a wrong guess.
 
Think of gold as a profit-making entity, and concern yourself with its upward or downward trend, invest in the yellow metal for its potential as a hedging commodity or insurance policy for your retirement account.
 
Be mindful of its upward or downward trend, to be sure. But don’t be a slave to that trend. Most every time is a good way to invest in gold – physical gold. Keep in mind that gold possesses a natural negative correlation to the stock market. With notable exceptions, if the stock market moves up, gold will move down or hold firm. And if the stock market moves down, gold will move up.
 
This negative correlation is precisely why gold is widely regarded as a safe haven. On April 2, 2017, for instance, US auto sales are down. Both Ford and General Motors show weaker-than-anticipated sales. Ford shares dropped to a 21-month low, and GM’s April sales declined 5.8%.
 
Investors with sufficient physical gold in their portfolio will be well-equipped to weather this financial storm. Because, if auto sales continue to move down, and the economy at large suffers as a result, investors will most certainly move funds over to a safe haven like gold.
 
If you’re holding gold, then, you’re already in a good position. Don’t wait to buy gold; rather, buy gold and wait.
 
For more information, call 800-777-6177 now, or request our FREE guide.

Posted in Alternative Assets, Economy, Gold, Investor, IRA & 401-K Accounts, Money, Physical Gold, Precious Metals, Precious Metals News, Retirement, Silver, Stocks, Trump, US Dollar, World | Comments Off

Trump’s Bold Tax Plan – Good or Bad for Gold?

Trump and Tax Plan
Once again, Donald Trump has embroiled himself in controversy that strikes at the heart of Americans. His plan is to slash taxes, but not just for the rich, as his critics had anticipated. The President has put forth a proposal that will profoundly affect many individuals as well as almost all corporations. He has boldly suggested his proposal will stimulate GDP growth to the tune of a whopping four percent.
 
Also, Trump is looking to create millions of jobs, simplify what has become an onerous tax code, provide tax relief to American families (primarily middle-income families), and lower the business tax rate to one of the lowest in the world (it’s currently one of the highest).
 
At a White House press briefing on Wednesday, April 26, Treasury Secretary Steve Mnuchin and National Economic Council Chair Gary Cohn announced President Trump’s tax reform plan. In broad strokes, here is the President’s plan.
 
• For individuals, it will reduce the number of tax brackets from seven to three and cut the marginal tax rate from 39.6 to 35 percent.
 
• Double the standard deduction, and eliminate almost all tax breaks except for home ownership and charitable deductions.
 
• Abolish the Alternative Minimum Tax, the Obamacare tax on investment income, and the estate tax.
 
• For businesses, the plan proposes to cut the corporate tax rate to 15 percent.
 
Needless to say, a comprehensive tax plan like this will draw its share of critics and supporters. The publisher Time, for instance, applauds the reduction of the nation’s tax burden by about $12 trillion over ten years. They reason too that the ambitious reduction of the corporate tax rate will boost America’s competitiveness.
 
On the other hand, the Tax Policy Center bemoans that the President’s plan will add trillions to our national debt over the next ten years. TPC blogger Howard Gleckman writes, “This is not reform. It is, rather, an enormous tax cut.”
 
How will the Trump tax plan, if enacted, affect gold? Will it drive the price of the yellow metal up? Or will it cause it to decline?
 
There seems little doubt that the stock market will soar, provided Congress clears the president’s proposal with minimum modification. Given a strong reduction in taxes, American corporations could grab at an opportunity to develop and grow. We’d soon see the results spelled out in a Dow Jones Industrial Average (DJIA) that could well fly up from its present level of almost 21,000 to 30,000 in the not-too-distant future.
 
Such market activity suggests investors were then becoming less risk averse and were moving from safe-haven assets like gold in favor of paper assets like stocks. At that point, of course, we could easily see a move down in gold.
 
This would be for only a small window of time. As Marc Faber, publisher of the Gloom, Boom & Doom Report, has continually pointed out, asset prices have been “grossly inflated.”
 
While we’ve seen some dramatic corrections in the stock market in the last year, the rapidly rising prices of equities fueled by an enormous federal deficit unleashed by President Trump’s tax plan are a natural invitation to a precipitous rush to gold as a safe haven.
 
For all of the changes we now face, you can be certain of one thing. Gold will continue to provide protection and security for retirement accounts in a wavering stock market.
 
For more information, call 800-777-6177 now, or request our FREE guide.

Posted in Alternative Assets, Economy, Global, Gold, Investor, IRA & 401-K Accounts, Money, Physical Gold, Precious Metals, Precious Metals News, Retirement, Silver, Stocks, Trump, US Dollar, World | Comments Off

Venezuela and the Horrific Nightmare of Inflation


When Columbus arrived in Venezuela on his way to what is now America, he dubbed the country “The Land of Grace” (Isla de Gracia). He became breathless at what he discovered. He thought he had reached Paradise. Columbus devoted two weeks exploring the Río Orinoco delta. He became entranced with the ample source of fresh water and the pearl ornaments of the native population. He believed he had discovered the Garden of Eden.
 
But it was Amerigo Vespucci, in 1499, who gave Venezuela its name, one year after Columbus had explored the Orinoco River Delta. When the Florentine explorer sailed along the coast of South America and reached Lake Maracaibo, and noticed homes on stilts along the shore, he couldn’t help but think of Venice, and thus named the region Venezuela, or “Little Venice.”
 
Unfortunately, the sixth largest country in South America, though it retains its beauty and biodiversity, no longer can be thought of as a charming place for city dwellers to carve out a life. The Land of Grace has turned into a hell on earth.
 
The residents are having a difficult time finding food, clothing, medical supplies, and even toilet paper. Venezuela has now become besieged by rampant crime, a government dictatorship, and inflation that’s out of control.
Venezuela Inflation
In 2016, the country’s inflation hit 800 per cent, and its gross domestic product (GDP) contracted 18.6 percent. Four out of five households are now officially in poverty, twice the rate that enveloped the economy when its current corrupt and inept leader, Nicolás Maduro, came into power in 2013.
 
The fundamental reason for Venezuela’s economic disaster can be traced to its over-reliance on its oil exports.
 
When global oil prices toppled in 2014 from $100 a barrel to $21.50 a barrel, Venezuela found itself in dire straits. The country became plagued by enormous oil surpluses. What was once its economic advantage rapidly had become its economic curse. Lacking other resources, government leaders discovered that oil surpluses did not convert to food, medical supplies, toilet paper, or domestic stability.
 
Venezuela now found itself trapped by the “resource curse” known as the Dutch disease. The phrase came into fashion in 1977 when the Dutch economy precipitously declined on the tail of the Netherlands discovery of natural gas reserves in 1959. The country had come to suffer as a result of relying too heavily on one resource – natural gas – and on an overvaluation of the Dutch currency.
 
Unfortunately, the Dutch disease didn’t translate into an economic lesson for Venezuela. In 2013, that country’s $143 billion in exports consisted of $139 billion in crude and refined petroleum. So it comes as no surprise that when world oil prices plummeted, Venezuela’s economy collapsed.
 
As things stand, Venezuela does not have enough money to import food and medicine, its shopping lines have become longer and longer, whereupon shoppers ultimately discover stores’ shelves have become empty.
 
Inflation keeps rising, and the bolivar, Venezuela’s currency, is devaluing. One bolivar is now worth 0.100127 US dollars. And there’s no stopping of the currency slide in sight. Needless to say, the country is now caught in a nightmare of crime and political corruption.
 
Is there a lesson we can learn from Venezuela’s experience with inflation? I think so. While here in the United States, we’re nowhere close to that nation’s economic tragedy, we’d be well advised to keep in mind that fiat currency could very well go poof in our lifetime.
 
Also, we don’t accumulate wealth, per se, by just accumulating dollars. It’s important to accumulate hard assets as well. And the best of the hard assets, in terms of its history and portability, remains physical gold.
 
For more information, call 800-777-6177 now or request our FREE guide today.

Posted in Alternative Assets, Economy, Global, Gold, Inflation, Investor, IRA & 401-K Accounts, Money, Physical Gold, Precious Metals, Precious Metals News, Stocks, World | Comments Off

How to Spot Counterfeit Gold

If you’re choosing to invest in gold or other precious metals, you’re making a wise investment in your future. The decision to buy gold and silver, or other precious metal investment shows you understand financial markets can vary wildly, and precious metals can be a way to stabilize and protect your portfolio.
 
The problem is, there are some illicit individuals who have made a career out of counterfeiting gold and other precious metals. When you buy gold, whether it’s gold coins, bars or some other form of gold, it’s very important to be careful who you choose to do business with.
 
Back in the prospecting days, when a suspicious man with a hunchback and a long mustache handed you a gold coin, you could bite down on it and know right away if someone was taking you for a sucker. Today’s gold counterfeiters are a little more sophisticated, but there are still ways to spot them and their fraudulent products.
 
You don’t have to be a gold expert to know when someone is trying to scam you. Here are some ways to spot counterfeit gold and some warning signs you might be dealing with a scammer.
 
How to Identify Counterfeit Gold
 
So how do you spot counterfeit gold? Here are some tips:
 
1. Gold Coins
There are numerous ways to determine if a gold coin is a fake. Make sure to look for these telltale signs.
 
• Color: Gold coins have a reddish gold color. If someone presents you with a gleaming yellow gold coin, look out. A pure gold bullion slug may look this way, but gold eagles, the most popular type of gold coin, are an alloy, and the gold contains other metals like copper and silver, giving it a bit of a duller tone. If your gold coin looks too golden, watch out.
 
• Design: Someone counterfeiting a gold eagle coin will have to get the features of the coin just right, including the location of the date and the appearance of the figures. Look up a picture of a gold eagle you know to be genuine and compare the features for location and accuracy.
 
• Texture: A gold eagle coin does not lay perfectly flat. It has a somewhat concave shape, which you can see easily if you look at the way the light reflects off it. If you have a perfectly flat gold eagle coin, there’s a good chance you’re dealing with a fake.
 
gold eagle
 
• Weight: As you would expect, a 1-ounce gold coin should weigh 1 ounce — 1.09 troy ounce, to be exact. If it weighs more or less, you’re dealing with a fake.
 
• Dimensions: A 1-ounce gold coin is 32.70 mm in diameter and 2.87 mm in thickness. If your coin does not meet these specifications, you have a problem.
 
• Edge: Naturally, all gold eagles, like most coins, have a serrated edge. However, the gold eagle has a clean, rounded serrated edge. If the edge of your gold coin looks especially uneven or rough, you may be dealing with a phony.
 
• Sound: When you drop a real gold eagle on a hard surface, it makes a distinctive ping, almost a ringing sound. A counterfeit coin is more likely to produce a duller thud.
 
2. Gold Bars
 
Gold bars are a little different from gold coins. There are some features of gold coins that you would not necessarily expect to see in gold bars, and vice versa. That being said, there are ways to spot fake gold bars as well.
 
• Presentation: You will see many gold bars that come with an assay certificate and markings from the issuing entity, usually a bank. If the packaging, certificate or embossing on the bar looks unprofessional; something is misspelled; the font on the certificate or manner of sealing the packaging is messy; the name on the bar or the assay certificate is not one you recognize; or the serial number is missing from the assay certificate, the bar or both, you may be dealing with a fake.
 
• Weight: As with the gold coin, if you have a 1-ounce gold bar, it should weigh about a troy ounce — 31.1 grams. If it weighs noticeably more or less, you should be suspicious.
 
• Dimensions: A typical 1-troy ounce gold bar will be 15mm in length, 8mm in width and 0.4mm in thickness. If your bar is noticeably longer, shorter, wider, narrower, thinner or thicker, look out.
 
gold bar
 
• Sound: Like gold coins, gold bars have a distinctive pinging sound when dropped. Listen for it. Compare it to a bar you know is real if possible.
 
How to identify a trustworthy company?
 
As a layperson who is not a gold expert, your best bet is to buy your gold from a dealer or through an agent you trust. How can you be sure if the person you are dealing with for your gold is trustworthy? Here are a few signs to look out for when trying to determine if the person you’re dealing with is a gold expert or an expert scammer.
 
1. If the Person is Rushing an Investment Decision
 
There may be a good reason to act fast when it comes to gold investment. If the experts expect prices to rise, you want to get in on the deal before they do. However, urgency should be for your benefit, not the broker’s. If your broker seems overly eager to finish the deal as soon as possible, it may be because he wants to get your money before you realize something is up. With any important investment of your financial resources, you should take your time and be sure you are making the decision that’s right for you. Anyone who puts pressure on you to make a rushed investment decision is probably not someone to be trusted.
 
gold bar
 
2. They Don’t Like Questions
 
A reputable gold agent should be more than happy to answer any questions you may have about the process. Watch out for agents that deflect questions, dismiss your concerns as nothing to worry about, or give convoluted answers that don’t seem to make a lot of sense. Don’t let any gold dealer make you feel like you can’t understand something just because you’re not a professional trader in precious metals. A good agent will be able to answer questions things simply enough that a layperson can understand them.
 
3. The Rep Isn’t Willing to Educate You Through the Process
 
Gold can be a great investment and can be a very profitable alternative to traditional financial products. You want a gold agent who is confident and understands the benefits of gold, but there are highs and lows with every type of investment. If you’re working with someone who tells you nothing can possibly go wrong, they’re not interested in helping you make an informed investment decision, they just want your money. If it sounds too good to be true, it likely is.
 
Fortress Gold Group: A Name You Can Trust in Precious Metal Investment
 
When you buy your gold through Fortress Gold Group, you know you’re buying from a source you can trust. Fortress Gold Group is a Pro-Consumer Advocate, dedicated to educating the gold and silver investor and helping you protect yourself when purchasing these commodities. For even more insider tips and advice for buying gold and silver safely, get our Free Investor Kit.
 
Fortress Gold Group has been reliably offering gold investments to our clients for years. We are the only company that Ed Moy, former director of the United States Mint, trusts with his gold IRA. If you’re concerned about protecting your retirement in a volatile market, a gold-backed IRA or silver-backed IRA could be just right for you. These IRAs work just like regular IRAs, except the investment product supporting the IRA is gold or silver. Since precious metals tend to be more resistant to market forces, and often perform well when other investment products are lagging, you may find you have much more peace of mind with your gold IRA.
 
For more information on how to make a safe, smart gold investment with the experts that Inc. 500 rated the No. 1 Gold Firm in America, contact Fortress Gold Group today. Request more information now or call one of our precious metals specialists at 800-777-6177 for answers to any precious metals investing questions you may have.

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The Slippery Measure of Inflation

Measure of InflationPerhaps the claim is apocryphal, but pollster George Gallup is reported to have claimed he could prove God statistically. If we didn’t know better, we might guess that he began his stellar career at the Bureau of Labor statistics, or maybe even at the Federal Reserve.
 
According to these influential government organizations, we have little to worry about in the way of inflation. In her speech last January at the Stanford Institute for Economic Policy Research, Fed Chair Janet Yellen echoed this sentiment when she talked of 2% inflation as being more of a goal than a current reality, and claimed “I feel the U.S. economy is in a reasonably good position and there is a little bit less to lose sleep about now than there was in 2008, 2009 and 2010….”
 
It would appear, then, the official measure of inflation is like Janet Yellen’s sleep cycle – it depends on what you’re used to. If you buy an item for $1.00, and next year it costs $1.02, then, yes, it’s fair to say the rate of inflation is 2%.
 
The Federal Reserve uses core inflation data – a metric that does not include food and energy. The reasoning here is that these are volatile industries subject to external factors. Fed officials feel that measuring inflation is much more accurate when food and energy don’t cloud their calculation.
 
This official perspective is of little consolation to those of us who shop for food and heat our homes. While our own measuring technique is, of necessity, it’s one we can rely on. Daily Reckoning writer Charles Hugh Smith whimsically refers to our subjective measure of inflation as the “Burrito Index”:
 
“…I can track the real-world inflation of the Burrito Index with great accuracy. The cost of a regular burrito from our local taco truck has gone up from $2.50 in 2001 to $5 in 2010 to $6.50 in 2016.”
 
That’s a $160% increase since 2001; 15 years in which the official inflation rate reports that what $1 bought in 2001 can supposedly be bought with $1.35 today. This enormous loss of purchasing power is not reflected in the official measure of inflation, which claims inflation is subdued (1% or so annually).”
 
So if you’re consoling yourself with the “biased and often-manipulated government reporting” of official statistics, it’s time to retrench and continue on with your personal investment program. The government is not out shopping for your car, paying your food bill, or heating your home.
 
Moreover, if the economy strengthens this year, it’s only natural that you’ll encounter greater inflation. If consumer prices continue to arrive, physical gold remains your best protection, the one hedge against a dollar of declining value and rising inflation.
 
Request more information now or call 800-777-6177 now, and ask to speak to a Fortress Gold Group representative.

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The Threat of War and Gold

Two weeks ago, the United States launched a bombing attack on a Syrian government airbase as retaliation for that country’s use of the nerve gas sarin against its own people. President Trump found Syrian President Bashar al-Assad’s use of sarin especially heinous because of the excruciating physical damage it inflicted on many of Syria’s children.Threat of War and Gold
 
Twenty years ago, the stockpiling and production of sarin was banned by the Chemical Weapons Convention of 1993 and classified as a Schedule 1 substance. Persuaded of sarin’s horrific effects, the UN Special Commission on Iraqis disarmament had destroyed the nerve gas, citing Security Council resolution 687 (1991) regarding the disposal of Iraq’s weapons of mass destruction.
 
In response to Mr. Trump’s military action, North Korea leader Kim Jong-un put forth a bellicose threat to the United States in which he boasted of his country’s long-range-nuclear-missile capability. And Russian Prime Minister Dmitry Medvedev, according to Reuters weighed in with his own aggressive public statement, declaring that the U.S. strikes “were one step away from clashing with Russia’s military.” There you have it – the threat, or, at least, the prospect of war.
 
The United States is certainly no stranger to this kind of brinksmanship. In recent years, Presidents Clinton, George W. Bush, and Barack Obama have all found their administrations embroiled, willy-nilly, in military actions – Clinton in the former Yugoslavia, and GWB and Obama in Iraq and Afghanistan, among others.
 
Granted, the prospect of war can be depressing, especially in a nuclear age. But that doesn’t mean investors should panic at every threat of war each time they read a news account or listen to a news broadcast. Brinksmanship or sheer barking across a border or an ocean is one thing. A true threat – one that could elicit a military response from a threatened nation – is an entirely different proposition.
 
A more sensible response by investors to the possibility of war is to accumulate gold as a safe haven for their retirement accounts. It is no coincidence that the price of gold has been higher during the recent geopolitical events involving Syria, North Korea, Russia, and the United States.
 
A war prompts a nation to spend money to finance that war. When a nation runs out of money to pay for war, it will print money. The printing of money for war, in turn, leads to the debasement of a nation’s currency – much as it did in the post-World War I era when Germany’s economy was sucked into hyperinflation.
 
So rather than panic at the threat of war, use the threat as a signal to accumulate more gold, or to start your gold-purchasing program if you haven’t done so already. It’s one time when bucking a financial trend makes sense, and adds value to your portfolio.
 
Request more information now or call 800-777-6177 now, and ask to speak to a Fortress Gold Group representative.

Posted in Alternative Assets, China, Economy, Global, Gold, Inflation, Investor, IRA & 401-K Accounts, Physical Gold, Precious Metals, Precious Metals News, Retirement, US Dollar, World | Comments Off

Gold Price Climbs Amid Geopolitical Tensions

Imagine traveling across the globe for an important afternoon appointment only to be kept waiting for hours. That’s exactly what happened to Secretary of State Rex W. Tillerson, who headed to Russia Wednesday to meet with Russian President Vladimir V. Putin. Finally, at 6PM, the two sat down – ostensibly to clarify, then improve, some significant differences between their countries.
 
Unfortunately, the pugnacious negotiators couldn’t agree on the facts. A day before Mr. Tillerson arrived in Moscow, the White House accused Syrian President Bashar al-Assad’s government of spraying his own people, including children, with sarin gas from a base where Russian troops operate.
 
Mr. Putin said the entire story was a bald lie. Mr. Tillerson remarked that the Assad family’s rule is coming to an end in Syria and demanded that Russia end its relationship with that country.
Gold
In the meantime, North Korea also accused the United States of unwarranted aggression and threatened reprisal with a nuclear attack.
 
Investors, fearful of exorbitant international risk, turned to gold for a safe haven. As a result, on Tuesday, futures for the yellow metal in after-hours trading reached an intraday high of $1,277.40, highest price since November 10th. Gold broke the 200-day moving average, a frequent trading barometer employed by analysts.
 
A report from the UN’s Conference on Trade and Development documented a 13% decline in “direct investment flows” to an estimated $1.52 trillion. Although U.S. businesses could profit from many of Trump’s proposed economic changes, the uncertainty stimulated by his desired protectionist policy appears to be hampering international trade already.
 
In view of this uncertainty in the international economy, it makes sense for to increase the percentage of physical gold you hold in your portfolio. Why play a guessing game about which paper assets to invest in? Gold is clearly at a low price – $1,276 spot on Wednesday’s close. Some professionals are calling for $1,330 gold, or even $1,500 and higher.
 
Request more information now or call 800-777-6177 now, and ask to speak to a Fortress Gold Group representative.

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Stick with Physical Gold Over Mining Stocks

Gold is sure acting like it’s trying to break out. As of April 13th, 2017, gold was at $1,287 spot price and an trading at high of $1,288 spot. As mentioned in a recent blog, uncertainty in geopolitical affairs is driving investors to flock to the yellow metal for a safe haven.
 
GoldThe more valiant investor may be thinking along these lines: if the physical commodity (gold) is hot, then investing in gold mining stocks may be a better way to get impressive returns on the dollar. If picking the right mining stock, you may be absolutely right. You may just break the bank. You could double or even triple your money if the stock you buy outperforms other stocks, or the gold market itself.
 
For example, some promising drilling results on its Orenada property have caused Alexandria’s stock to appreciate 43% in just the last month alone. It seems the company keeps butting up against high-grade gold every time it drills.
 
Mining stocks are noted for these kinds of spectacular returns when their respective commodities perform well. A problem arises though when gold corrects even just a little. After all, what goes up goes down. A small correction in gold can stimulate a big correction in a gold mining stock.
 
When buying gold coins, you buy a hard asset, which like any hard asset- real estate, for instance – moves up and down in market value. When buying stock in a mining company, you’re betting on management’s ability to deal with its own problems and challenges.
 
As gold goes on its merry way up or down, a mining company can undergo a strike, sudden unanticipated cost increases and gargantuan debt. If gold slips to $1,100, investors who bought gold coins at $1,287 would lose about 14.5% on their money. (Strictly speaking, they wouldn’t lose unless they sell).
 
When gold falls to $1,100, mine owners will have difficulty paying back their debt obligations, have troubles with insolvency and, therefore, survival. But when you hold the physical metal, you hold an investment for all seasons.
 
Are there advantages to investing in gold stocks? Absolutely! You could break the bank – or at least see a substantial return on your investment, providing gold moves quickly. When you invest in physical gold, on the other hand, you may not see the same impressive returns but you’ll always have protection against the paper assets in your retirement funds.
 
Request more information now or call 800-777-6177 now, and ask to speak to a Fortress Gold Group representative.

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Why Brexit Could Propel Gold to New Highs

On March 29, 2017, nine months after a referendum approving by 51.9% the UK’s departure from the European Union (EU), UK Prime Minister Theresa May signed Article 50 of the EU Charter to initiate the action.
Brexit
While professional investors aren’t exactly sure how or even whether the departure, popularly known as Brexit, will affect the stock market, at least one observer, Martin Tillier, feels it will almost certainly cause the price of gold to rise.
 
Tillier argues that although gold technically is a commodity, Brexit will exact a performance from the yellow metal which is more in keeping with that of a currency on the foreign exchange (FX) market. To appreciate that fact, stresses Tillier, one needs to understand the prestigious standing of the British pound alongside the U.S. dollar, the Japanese yen, and the euro – all major world currencies. Much of the reason for the elevated status of the pound can be attributed to the fact that London, even during the Brexit tumult, has remained Europe’s financial center.
 
An excess of $5 trillion in diverse currency turns around daily on the foreign exchange market. This is clearly the largest financial market in the world, much larger than the markets for stocks and bonds. It wouldn’t be surprising at all if some of this cash seeps into the gold market. If just a small amount of it does, claims Tillier, the shiny metal will undoubtedly undergo “a strong bullish run.”
 
Even if the UK works out amicable terms with the EU for its departure, London is now due to lose its preeminent position as Europe’s financial center. Many of the giant banks with London as their center of European operations will move elsewhere. These moves will most certainly put pressure on the British pound.
 
Although the yen has strengthened somewhat recently, Japan’s struggles with negative interest rates and other inflationary challenges will still make it unattractive as a panacea currency for foreign exchange traders, as will the dollar or the euro, because of their recent setbacks.
 
Tillier is wagering that traders will turn to gold for its “role as a traditional store of value and an inflation hedge.” As of this writing, the shiny metal is up $4.00 at a spot price of $1,252 on the COMEX close.
 
Given the strong possibility of a run-up in the price of gold as we get closer to the official date of Brexit, along with the many economic challenges that plague the EU and the United States, you’d be wise to divert some of the profits from your papers asset to physical gold.
 
Request more information now or call 800-777-6177 now, and ask to speak to a Fortress Gold Group representative.

Posted in Alternative Assets, Bitcoin, Brexit, China, Economy, Global, Gold, Inflation, Investor, IRA & 401-K Accounts, Money, Physical Gold, Precious Metals, Precious Metals News, Retirement, Silver, Stocks, Trump, US Dollar, World | Comments Off

What If President Trump Takes Over the Fed?

TrumpDuring the ten weeks since he’s moved into the White House, Donald Trump has taken a great deal of unprecedented bold action. Depending on which side of the aisle you favor, you’ll regard his confrontational approach to the presidency as either refreshingly honest or maddening and, perhaps, even risky.
 
He’s withdrawn U.S. membership from the Trans Pacific Partnership. He’s given the go-ahead for building a wall between Mexico and the U.S. to help limit the flow of illegals and drugs into our country. He’s ordered a freeze on federal hiring except for military, public safety and public health jobs.
 
He’s ordered a dismantling of the Affordable Care Act, more popularly known as “Obamacare,” named for his predecessor, the creator of the legislation. Again, in defiance of President Obama, he’s reactivated plans to go ahead with the Keystone Pipeline.
 
And, citing his authority to do so under the U.S. Constitution, the President has issued a ban to travelers from seven countries looking to enter the United States. Nobody can claim that Donald Trump has been a passive or laissez-faire chief executive.
 
He’s given us every reason to believe he’ll continue to take bold steps where he sees fit during his remaining time in office during the next four or eight years.
 
Danny Vinik, editor of The Agenda at Politico, presents a scenario in that web publication of how Trump might make more sweeping changes to the Fed than any president since Ronald Reagan.
 
Almost all presidents have appointed Fed members from the ranks of economists and bankers, but as Vinik points out, Donald Trump routinely surrounds himself with a more unorthodox if not altogether hawkish group of advisors. Many are certainly hawkish in their approach to money and a bevy of them even support a gold standard, a notion not seriously entertained by any president since Herbert Hoover.
 
Among Trump officials and close supporters who advocate a gold standard are Ben Carson, Secretary of Housing and Urban Development (HUD); Judy Shelton, the director of the Sound Money Project at the Atlas Network, who was on the President’s transition team; John Allison, the former CEO of BB&T Corporation, whom Trump interviewed for treasury secretary in November, and many others.
 
In other words, there’s a real possibility that these politicians, if given their way, will help re-attach what President Nixon unattached in 1971 – gold and the U.S. dollar. Gold-standard lovers tend to distrust bankers because, among other reasons, they like to print money.
 
With a gold standard in place, Fed officials will be prevented from printing money, and that last resort of desperate bankers, quantitative easing, will fall by the wayside.
 
It’s hard to say just how aggressive the President will be about the Fed at this point. But one thing seems clear. The gold-standard sentiments of Trump and his supporters certainly make gold a worthwhile wager for anyone looking for an investment that can simultaneously serve as protection and a source of profit.
 
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