The prices of gold and silver products rose again today, partly helped by a surge in oil prices. Recent reports from the Labor Department about the rise in jobless claims and other lukewarm economic reports also contributed to the appeal of precious metals, as well as a recent speech made by billionaire investor Stan Druckenmiller.
Boasting one of the best money management records for a long–term period, Druckenmiller made headlines when he loaded up on gold products last year, with a $323-million investment that marked the single largest position in the investor’s family fund. When he spoke at the Sohn Investment Conference in New York earlier this week, he noted that gold is his largest currency allocation and believes that the bull market may possibly be exhausting itself. Coupled with the potential for negative interest rates in the near future, it seems that precious metals may be the best way to hedge portfolios against the volatility of the global markets.
On Friday, the official April Jobs Report will be released by The Bureau of Labor Statistics, which may further increase the appeal of precious metals. Predictions include a rising unemployment rate—from 4.9 to 5 percent, a five-week high. This could keep the Federal Reserve from lifting interest rates, prompting investors to buy more gold products and other precious metals by the end of the week.
Note that the same week that Donald Trump landed the Republican presidential nomination, the price of gold soared to more than $1,300 an ounce. Interesting that he is also a fan of gold products.
Gold products are having their best start to a year in a decade, and speculators believe this trend will continue in the near future. Many believe that silver products will continue to rise as well.
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