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 in the week on the heels of more Federal Reserve theater with President Donald Trump. At this stage, it’s clear the central bankers know they will have to cut rates, so they are just holding out and stalling as long as they can to slow the drastic outcome that may result in the short term.
Anyone watching the How To Protect Your IRA From A Market Crash knows that a slowdown has been ongoing for the past six months minimum. Central banks all over the world from Australia, to India, China, the European Union, now Russia, have all been moving to reduce rates in order to keep their economies from tanking in the meantime.
Even funds manager BlackRock within australia is now shorting the Australian Dollar because it foresees the Australian Central Bank lowering interest rates right down to a ground-scraping .5%.
Silver Not Lagging Far Behind Gold – Silver is another great option, rising 3% in the past week and breaking key resistance. Silver is yet another fine option to consider since there is a continuous shortage of silver miners in the business, which suggests ones retail investors head into silver in large numbers you will see a lack of supply that can play a role in huge upside in the shiny metal.
Additionally, Silver is wonderful as it is sufficiently small for barter/exchange for services and goods in an emergency, plus it qualifies for precious metals IRAs. Simultaneously we percieve the disappearance of the yield curve within the Treasuries markets, as now the 3-year bond yields a lot more than all other bonds except for the 30 year. This mass bond buying is clearly being carried out by large institutions to help keep yields so low that individuals will not be ready to park their cash in a safe place, but instead keep it on the stock trading until the central bankers all finally exhaust tricks and choose to permit it fall
Global Political Instability on the Rise – With the recent posturing and threats made for both sides of the current US/Iranian conflict in the Strait of Hormuz, the price of oil can be expected to see a rise as the body water sees 10 – 15% of total world oil production go through over a yearly basis. It seems the West does have its heart set on some type of wphxrd military confrontation since the rhetoric increasingly turns to missiles fired and tankers attacked.
No one know how this whole thing will develop, though with Gold IRA Company weakness and increasing political strife, it can make much more sense to keep gold and silver, especially with the current bursts in price to interrupt from 5-year prices.