Yesterday was a bloodbath for Wall Street and all major stock markets worldwide. However, gold rose as the global markets crashed, and as bad as it was, it's going to get worse.
As of this morning, markets are continuing to plunge.
This may mark the beginning stages of certain market ills and consequences that we’ve been warning about over the years, as irrational exuberance appears to have permeated the equity markets.
The Dow plunged by -833 points on Wednesday. As of today, the Dow’s slide now extends to -1,100. Here’s the catch: we’re still in potential “correction” territory, meaning that markets may still recuperate.
And although no one can predict the future with any degree of accuracy--meaning there’s no way to tell whether this is a correction or the beginning of a bear--one ominous sign is that bond yields are rising. Investors are no longer finding “safety” in bonds.
And what about Bitcoin? It’s following the broader market. Meaning Bitcoin too is not exhibiting signs of investor confidence as a safe haven.
But gold is rising..., and currently, it has broken above the key resistance level of 1212.15.
According to Several Notable Experts, Gold is Set to Climb to $1,350 by 2019
- BofAML attributes gold’s rise to the US budget deficit. Here’s Francisco Blanch, BofAML’s head of global commodities:
“We’re still pretty constructive longer term on gold...In the short run, the effects of a strong dollar, higher rates dominate. But in the long run, a huge U.S. government budget deficit is pretty positive for gold.”
- Goldman Sachs has also turned bullish on the yellow metal, forecasting a price fo $1,325 within the next twelve months.
- Ray Dalio, one of the most successful hedge fund managers, has been very vocal about a major downturn, resulting in the dollar’s collapse.
The hard fact is that the US budget will increase to roughly $1 trillion by fiscal 2019. To say that this is bad news for the US economy is an understatement. And the interest that government owes on its debts is set to triple over the next decade.
Here’s the main point: the writing is on the wall.
There is no safety in stocks…
Investors are finding no safety in bonds…
There is very little confidence in Bitcoin…
Instead, smart investors are flocking once again to gold to protect their wealth
If you value your hard-earned money, perhaps you too should do the same.
Even though gold is rising very quickly, it is still selling at discount prices.
But not only can you hedge your wealth by converting your wealth to gold, but you can also hedge your gold through GSI’s 3rd party hedging program to ensure that any unexpected downturn in gold will be minimized if not altogether eliminated.
Gold hedging is what institutional sellers and producers do on a regular basis to minimize price risks for the metals they are either producing or distributing.
At GSI, we are offering this same institutional privilege to our clients.
If you want to learn more about this, call us, and we’ll show you how it works.