Hold Onto gold In Time of Uncertainty

HOLD ONTO GOLD IN TIME OF UNCERTAINTY  

 Gold and Silver coins for investment
Corona Virus Pandemic, Unemployment, Recession, Stock Market Volatility and Civil Unrest are driving uncertainty. And everyone is feeling uneasy about their financial future during challenging economic times.

Gold has been the most stable and long-standing circulating medium of exchange, purchasing power, profit potential and store of wealth for centuries. Hold onto gold for financial security in time of uncertainty.
 Federal Reserve Chairman Jerome Powell
SIGNIFICANT UNCERTAINTY
On June 16, 2020, Federal Reserve Chairman Jerome Powell warned at the Senate Hearing that “U.S. Economy Faces Deep Downturn With Significant Uncertainty.  Much of that economic uncertainty comes from uncertainty about the path of the disease and the effects of measures to contain it.” Until public regain confidence, economic recovery from pandemic is uncertain and the Fed does not expect a quick recovery.    While there are signs that the US is bouncing back from the worst pandemic impact,  there’s still a long way to go.  “If not contained and reversed, the downturn could further widen gap in economic well-being that the long expansion had made some progress in closing.”, Powell said.  
Sources:  Forbes, Bloomberg, Fox Business, Yahoo Finance
 COVID-19 Pandemic
COVID-19 PANDEMIC
The Corona Virus outbreak in early 2020 suddenly shut down many businesses. Subsequently Gross Domestic Product (GDP) along with US economy has shrunk 5% in the first quarter of 2020. As of July, 2020, there are over 12 million confirmed cases and 500k deaths globally and the rates are increasing daily. Currently, there is no vaccine to cure Corona virus disease (COVID-19). So far, doctors are treating COVID-19 patients at their best guess. It may take years to develop a vaccine and it reaches the entire global population. Uncertainty in health and economy sectors would continue before vaccine is found.
Sources:  U.S. Bureau of Economic Analysis (BEA), W.H.O, CDC
 US UNEMPLOYMENT hit record high
UNEMPLOYMENT
The sudden shutdowns of businesses had caused epic damage to the US job market.  Eventually, many of these businesses begin to reopen slowly or partially.  But for some business, shutdowns and job losses can be permanent and some laid-off workers may never come back. As of June, 2020, Government reports showed the U.S. unemployment number climbed to 42 millions. May unemployment rate 14.7% is the highest since the Great Depression during 1930s (25.6%). Grim picture of the job market is widespread uncertainty and economic analysts believe it could take years to recover.
Sources:  U.S. Bureau of Labor Statistics, Fox Business
 POLITICAL & Civil Unrest
POLITICAL & CIVIL UNREST
Nationwide Civil unrest and looting across the US could cause negative impact to markets and the US economic recovery.  Because continued civil unrest could threaten consumer confidence and slow down the trajectory of the business reopening. As cities and states have embarked on some stage of reopening from Corona pandemic shutdown, unrest will add a whole new level of uncertainty. The deterioration in consumer spending is susceptible Downside Risks to U.S. GDP growth.   If GDP number continues to go down instead of going up for a period of at least six months, then recession is on the way, most experts agree.
Sources:  Civil unrest & economy
 VOLATILE STOCK MARKET
VOLATILE STOCK MARKET
There is no guarantee that the stock market strength, rebound and surge will last forever, especially when economic prospects don’t materialize, experts said.   COVID-19 Pandemic shutdown the NYSE stock market’s trading floor on March 20, 2020 as while stock prices were plummeting. On March 16, 2020, the Dow Jones hit a new record Low with 12.93% Free-Fall, closing at 20,188.52. (Losing 2,997.10 points). The brewing trade tensions between the US and China and Covid-19 Pandemic could have become negative catalysts for volatile stock markets, heightening economic uncertainty,  according to industry watchers. 
Sources: WSJ, NYSE, Forbes, Bloomberg



STOCK MARKET

STOCK MARKET PLUNGED DURING PANDEMIC
 Stock down during pandemic



STOCK MARKET VOLATILITY
 Stock market volatility



UNEMPLOYMENT

U.S. UNEMPLOYMENT HISTORICAL CHART
 US UNEMPLOYMENT hit record high
UNEMPLOYMENT AND U.S. ECONOMY

Labor Statistics Data
The Government official unemployment rate 14.7% in early May, 2020 could be higher than it looks due to worker categorization error. The Labor Department explained that millions of temporary-layoff workers (Furloughed workers) may have been misclassified as employed when they should have been categorized as unemployed. If those workers were properly categorized as unemployed, the jobless rate would have been 3 percentage points higher, according to the Bureau of Labor Statistics. More than 42 million Americans have filed for unemployment benefits.

Economic Rebound
At the end of May, 2020, government is easing lockdown restrictions and business are reopening and rehiring furloughed workers. And there are some glimmers of hope suggesting the worst economic downturn might be over. On June 5, 202, The Bureau of Labor Statistics announced that US employers added 2.5 million jobs in May, the largest monthly gain since in 1939. It is a surprising good news that defied economists’ worst expectations. The US unemployment rate declined to 13.3% in late May.

Slow Recovery
But Some industries may struggle to bounce back even as economies reopen. Some may never recover from the Corona virus crisis. How likely employers rehire more workers will depend on how reopening goes. The economic recovery also depends on how much the spread of the Corona virus is contained and when a vaccine is developed.  

US Economy in Recession
On June 8, 2020, NBER, The National Bureau of Economic Research declared that The United States is in a recession which began in February, ending the longest period of uninterrupted growth in US history dating back to 1854.   On the same day, a chief economist of investment and financial firm says “Despite the strong job market rebound in May, there are more uncertainties in the United States. One reason is that the U.S. is now a clear under-performer in virus control than other countries”.

Darkened Economic Outlook
On June 25, 2020 – Federal Reserve Bank of St. Louis published an alarming forecast of 32% U.S. unemployment  in the second quarter as 47 million workers laid off and  the Corona virus continues to spread.  That would be the highest jobless rate on records dating back to the 1930s Great Depression era.  Stock market fell sharply on the same day as the worst day of the month for the  Dow, S&P 500 and Nasdaq.

Sources: BLS, NBER, Goldman Sachs , Fox Business, Bloomberg



GROSS DOMESTIC PRODUCT

US GDP HISTORICAL RECORD CHART
 The Gross Domestic Product (GDP) in the United States
US GDP DECLINES IN 2020
Gross Domestic Product (GDP) in the United State declined 5 percent in the first quarter of 2020 due to the massive job loss and business shutdown caused by the pandemic.   The figure indicates that G.D.P. contracted at an approximate annual rate of 30 percent, or more, a scale not seen since the Great Depression. A chief economist for the credit insurance company in North America said “They’re going to be the worst in our lifetime in the post-World War II era.” Uncertainty grows as questions arise how much the economic damage the country will get and how long it will take to recover.

GDP, the measurement factor of Gross Domestic Product in the United States was worth 21200 billion US dollars in 2019, according to official data from the World Bank. The GDP value of the United States represents 17.50 percent of the world economy.


Sources: NBER, World Bank  



HISTORY OF GOLD

GOLD PRICE HISTORICAL CHART
 Historical Gold price chart - 1975 to present year
GOLD PRICE HISTORY
Gold price has increased 80+ times in value Over the past 100 years.  Gold price in 1920 was $20.65 and the gold Price in 2020 is $1750.00+ per Ounce. Experts say this growing upward trend is expected to continue.   Gold outperforms the stock market, bonds, equities, S&P 500 Index, Dow Jones, Gold ETF’s (Exchange Traded Funds), and cash. Gold retains value, while the dollar has declined more than 24% in value.

Gold price isn’t tied to stocks and bonds (Which are volatile market environments).  Gold‘s low correlation to other assets provides more stability and security than other investments options.  That is one reason many investors buy physical Gold or Silver as long-term investments.    Investors shouldn’t panic over occasional drops in gold prices. Gold always rebounds.  According to 100 years historical data, the gold price trend is always climbing upward in the long run. In most cases, the gold price rose during the biggest stock market crashes.  


Sources: reuters, goldprice.org, NMA, wikipedia, elementmagn


GOLD IS FOREVER


 Gold - King of Metals
GOLD:   THE KING OF METALS
Gold, the king of metals with brilliant shiny glow color is the most useful and precious one among all other minerals mined from the Earth. Gold is always in high demand due to its Monetary Value, incredible malleability, base metals for use in jewelry, industrial usage such as electrical connectors in computers and other electrical devices, uses of gold in Aerospace and Dentistry. 

Gold has been the most stable and long-standing circulating medium of exchange throughout world history.  Gold has been used to make ornamental objects and jewelry for thousands of years.   Gold has been a hedge against inflation, everlasting purchasing power, profit potential and store of wealth for centuries. Gold Matters. Gold is forever.


Sources: reuters, goldprice.org, NMA, wikipedia, elementmagn



DIVERSIFY YOUR PORTFOLIO WITH GOLD AND SILVER

PROTECT YOUR WEALTH, SECURE YOUR RETIREMENT

Global uncertainty and recession threat made Precious Metals Investment the best option. Protect your wealth and secure your retirement by investing in precious metals. Physical gold is a private tangible asset. Gold can not go broke or bankrupt. Gold is not vulnerable to manipulation or devaluation by government or Central Bank.

Having an established Gold & Silver IRA (Individual Retirement Account) means that you will have direct physical ownership and full control of your assets and IRS Tax Exemption. And it also shields your retirement savings and preserves your wealth from (1) Inflation, (2) currency decline, and (3) economic collapse. As long as you have physical gold or silver in hand to sell or trade, you will never be broke, even if economy collapses. You can only trust what you can hold. You can start your investment from one of these investment options below:

(1) Transfer your existing traditional IRA or 401k retirement savings into a Precious Metals
IRA Account backed by physical gold and silver.
(2) Or you can purchase Gold or Silver directly with cash, in the form of a bar or coin from
a precious metals dealer like Priority Gold.

Interested in Investing in Precious Metals?

Priority Gold can help you diversify your portfolio. The investment process is simple and easy. If you do not know where to start, contact us as below. Our team of precious metals specialists with expert knowledge is here to help you.

Phone: (888) 465-3008
Email: info@prioritygold.com



FREE PRECIOUS METALS IRA GUIDE

Learn how to invest in precious metals, gold and silver. Priority Gold can help you invest in precious metals. The Priority Gold FREE Investment Information Guide will educate you on how diversifying your assets with precious metals may help you hedge against national and global instability. After reviewing your free information guide, you can contact any of our Priority Gold Specialists to get started now.

Our experienced team is here to answer and address all of your questions and concerns pertaining to all of your precious metals needs. You can view Free IRA guide online now by clicking 1st link below (or) you can download it in PDF version by clicking 2nd link below.


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The End Really Is Near: A Play-By-Play Of The Coming Economic Collapse

Economic collapse and growth

 

By Max Cea | Published August 12, 2018

Recoveries generally don’t die of old age. So what’s going to kill ours? Five economists call it like they see it

Since June, 2009, the pit of one of the biggest recessions in American history, the U.S. economy has been growing, slowly but steadily. That’s just over nine years of uninterrupted growth. If the good times roll for another year — and most economists expect they will — this expansionary period will go down as the longest ever in American history, surpassing the 120-month-long period during the ‘90s tech boom. But don’t be so quick to pop bubbly and send the confetti raining down. There’s precedence for unprecedented growth: It always ends. The economy, of course, moves in cycles.

And no matter how you slice it, it would seem there’s only so much more climbing before a fall. But what will set off a downturn? How bad will it be? And when will it actually happen? To answer these questions and more, Salon consulted with five economists, three of whom (Peter Schiff, Steve Keen and Dean Baker) predicted the 2008 financial crisis before it hit.

What Will Happen: A recession caused by the Fed over-reacting to a temporary uptick in the inflation rate.

How this will transpire: There are two ways we get recessions. The first and more common is that the Fed raises interest rates too much (ostensibly because of concerns about inflation) and throws the economy into recession. The other is a bubble burst. The latter happened in 2001 with the stock bubble bursting and the 2008-09 recession with the housing bubble.

I don’t see a bubble bursting recession on the horizon because I don’t see any bubbles large enough to sink the economy when they burst. (We have bubbles, like Bitcoin and Tesla stock, but nothing terrible will happen to the economy when they burst.).

This leaves the Fed. I think [Chairman of the Federal Reserve Jerome] Powell has been cautious with his rate hikes and will likely continue to be. Nonetheless, inflation data is erratic and it is virtually inevitable that we will see some periods of higher inflation in the not too distant future. This should in principle not be too severe.

Gold to Close Best Month Since 2016; Palladium Jumps to 3-month highs

Gold close to best month since 2016

In the month, gold is closing its best month since 2016 with over 8.0% gains and logging its second consecutive month of gains. On the quarter, XAU/USD recovered itself from early losses, and it is posting near 9.5% gains in the last three months.

Gold and other metals are trading positive on the last day of the week as investors are nervous ahead of the well-waited meeting between Trump and Xi. Some risk aversion is hurting the dollar, giving power to gold buyers.

Investors are also focused on the end of the month and the quarter. They are trading in month-end rebalancing trades as they want to book profits to be included in their books. On Thursday, some profit taking was identified and Friday is not the exception as today will be the latest trading day of the month.

So, be aware of divergences that could be signaling profit taking and end-month rebalancing.

Gold to close green its sixth consecutive week and perform the best month since 2016

Gold is trading positive on Friday, however, the unit is losing some ground in the latest hours as the market is not confident about a resolution in the trade war.

Currently, XAU/USD is trading at 1,413.65, 0.26% positive on Friday. Technical indicators suggest that a consolidation phase is undergoing for the yellow metal.

The bullion is green on the week, the month and the quarter that are closing today. XAU/USD is ready to close its sixth positive week in a row, this time with slightly over 1.0% weekly gains.

In the month, gold is closing its best month since 2016 with over 8.0% gains. It is logging its second consecutive month of gains. On the quarter, XAU/USD recovered itself from early losses, and it is posting near 9.5% gains in the last three months.

According to experts, gold has been fueled by risk aversion due to the trade war, economic growth concerns in the United States, and geopolitical tensions in the middle east. At the top of it, the Federal Reserve hinted a possible rate cut in its meeting of July, giving extra power to the XAU/USD.

Metal prices report for June 28

Silver is trading down for the fourth consecutive day as investors are closing positions ahead of the end of the month. However, the metal is posting its first monthly gain since January. Currently, silver is trading 0.10% negative at 15.25.

Palladium is down on Friday, but earlier in the day it jumped to trade at highs since March 26 at 1,565.50. XPD/USD is closing its fourth consecutive week of gains and its best month since November 2016 with a 16.25% gain in June.

Copper is ready to close its first positive month since February as the mineral managed to post three weeks of gains in a row that took the unit from 2.6125 to test the 2.7450 area. On Friday, XCU/USD remains inside the range between 2.700 and 2.730 it has been trading in the last days. Copper is 0.20% negative on Friday at 2.7120.

Platinum is posting small gains on Friday as the unit is trading 0.30% positive at 816.00. XPT/USD is closing its second week of benefits and a month of recoveries after the big declined performed in May.

Source: FX Empire

The Retirement Crisis Is Much Worse Than You Think

Retirement Crisis

Are you sitting down for this? According to a recent survey, one in five American adults have nothing saved for retirement or emergencies. A further 20 percent have squirreled away only 5 percent or less of their annual income to meet certain financial goals. Less than a third of all Americans have saved at least 11 percent or more.

One in five working Americans arent saving any money for retirement
click to enlarge

The survey, conducted by Bankrate in late February and early March, is just the latest indication that the U.S. faces a major retirement crisis. Every day, some 10,000 baby boomers turn 65, and they’re reaching retirement in worse financial shape than the previous generation for the first time since Harry Truman was president, according to a report by the Wall Street Journal.

The survey also raises the question of why some working-age adults haven’t been able to take full advantage of a booming U.S. economy and historic bull market to build wealth. Unemployment is near a 50-year low, and wage gains were at their highest level in a decade last month.

According to Bankrate, the number one reason (40 percent) why Americans aren’t saving is that they have too many other expenses. Sixteen percent said they “haven’t gotten around to it,” while the same percentage blamed the low quality of their job.

Indeed, not every employer provides access to a retirement plan such as a 401(k). A recent study by the National Institute on Retirement Security (NIRS) found that a little over half of working American adults have access to an employer-sponsored 401(k)-type plan. Only 40 percent actually participate.

As such, the median retirement account balance among all working-age Americans is—again, are you sitting down?—$0.00. That’s the median balance, remember, so half of all Americans have more than that. The other half, meanwhile, have even less than $0.00 to their name.

A Record $4 Trillion in Consumer Debt

That brings me to my next point. Interestingly, only 13 percent of those surveyed by Bankrate cited debt as the reason why they’re not saving as much as they should. I say “interesting” because total U.S. consumer debt, including revolving and non-revolving debt, now stands at more than $4 trillion, the most ever.

gold mining stocks still greatly undervalued relative to the market
click to enlarge

Debt affects us all, but it can seriously hinder workers’ ability to retire on time. The more you’re on the hook to pay lenders, the less you have to pay yourself.

Revolving debt, such as credit card debt, is now valued at more than $1 trillion, which exceeds the all-time high right before the financial crisis. And according to the Federal Reserve Bank of New York, people age 60 and older owe about a third of this total.

Non-revolving debt—auto loans, student loans, mortgages—is even worse. Student loan debt alone stands at an astronomical $1.5 trillion. It doesn’t help that, since the 1980s, the cost of college tuition has increased almost eight times faster than wages.

But if you think this burden belongs only to young people, you’re sorely mistaken. As many as 2.8 million Americans over the age of 60 are saddled with student debt, according to CNBC. Those over 50 owed more than $260 billion last year, up dramatically from $46 billion in 2006.

Confidence Lacking in Retirement Preparedness

All combined, it’s little wonder that a significant number of Americans feel some anxiety when it comes to their financial stability and retirement preparedness, despite a strong U.S. economy. A CFP Board survey conducted on Election Day 2018 found that less than a quarter of voting-age Americans were “completely confident” about their ability to navigate through economic ups and downs. Even less, 22 percent, felt the same about their ability to retire on time.

Large percentage of voting Americans lack financial confidence
click to enlarge

So what’s the solution?

Fund Your Financial Goals Affordably

I’ve heard from a number of people over the age of 50 who say they worry they haven’t adequately prepared for retirement, and yet are at a loss as to where to start. They want to build wealth fast but might have second thoughts about investing in the market.

I want to reassure those people that they need not put a significant amount in the market all at once, which for most people is impractical and risky. The truth is that they have options. One of the best, I think, is dollar cost averaging, which allows investors to fund their financial goals affordably.

In short, dollar cost averaging is an investing technique that lets investors add to an initial investment incrementally over time, usually once a month. That way, investors don’t break the bank, and as an added bonus, they don’t need to worry about market timing.

It’s a technique that has worked well for investors in the past. Take a look at the chart below. It shows a hypothetical initial investment of $1,000 in an S&P 500 Index in March 2009. Ten years later, after regular monthly contributions of only $100, the value of that initial investment grew at an annualized 12.96 percent to more than $26,385.

The power of dollar cost averaging
click to enlarge

This is just an illustration. The past 10 years have been an exceptionally profitable time to invest, and there’s no guarantee that the good times will last.

Also, $26,000 won’t sustain anyone through retirement, but remember, we were using only a hypothetical $1,000. All else being equal, an initial investment of $10,000 in March 2009 would today be worth more than $64,766, for an impressive annualized return of 14.81 percent.

Sound enticing? The good news is that U.S. Global Investors provides investors the opportunity to invest with dollar cost averaging! We call it the ABC Investment Plan, and I’m very proud to give investors this option. Investment minimums are just $1,000 initially and then $100 a month. With the ABC Investment Plan, you get to choose the day of the month your investment is transferred from your checking or savings account to your investment account.

That way, some of the worry is eliminated from your retirement preparations or other financial goals.

SOURCE: US Funds

Silver Stocks Look Poised to Move Higher

Silver price and stock poised to move higher

Since late December, silver and related precious metal commodities have proven to be some of the best investments for those looking for a hedge against geopolitical uncertainty and heightened market volatility. While prices have rallied tremendously over a short period of time, in this article, we’ll take a look at three silver-related charts that suggest the move is just getting started and try to determine how active traders will want to position themselves for a long-term uptrend.

 

iShares Silver Trust (SLV)

It wasn’t a particularly good year for silver and silver-related investments in 2018. The strong rally that started in September helped many recoup some major losses, and the momentum has continued to benefit investors so far in 2019. Taking a look at the chart of the iShares Silver Trust (SLV), a common barometer used for measuring the day-to-day movement of silver bullion, the price has been able to break above two key levels of resistance. The break above the 200-day moving average in late 2018 and subsequent retest of the newly formed support is a significant technical development and suggests that the bulls are now in control of the longer-term direction.

 

Active traders will be particularly keen on following the rising 50-day moving average, which looks poised to move above the 200-day moving average at some point this week. When it occurs, the bullish crossover will be referred to as a golden cross and is a technical signal that officially marks the start of a long-term uptrend. The proximity to the major support levels to current prices is providing followers of technical analysis a lucrative risk-to-reward ratio, and many will look to see if the crossover will be the catalyst required for a move back toward the January high and above.

 
Technical chart showing the share price performance of the iShares Silver Trust (SLV)
StockCharts.com

Wheaton Precious Metals Corp. (WPM)

One of the world’s leading mining companies when it comes to precious metals such as silver is Wheaton Precious Metals Corp. (WPM). Taking a look at the chart below, you can see that the breakout in December was strong enough to send the price of the stock above the resistance of its 200-day moving average. The price consolidated along its 200-day moving average for several weeks until it started its trek higher.

 

The break above short-term resistance was a clear sign to the bulls that prices were headed higher, and the momentum is likely enough to trigger a golden crossover between the two long-term moving averages, as shown by the blue circle. Followers of technical analysis will likely keep a close eye on this chart because a crossover will likely be used as confirmation of a move higher and will likely mark the start of a long-term uptrend.

 
Technical chart showing the share price performance of Wheaton Precious Metals Corp. (WPM)
StockCharts.com

First Majestic Silver Corp. (AG)

Another significant player within the silver market that active traders may be interested in following is First Majestic Silver Corp. (AG). While the pattern isn’t quite as developed as those mentioned above, the confined range shown on the chart is a clear indication that a major move in one direction or the other is imminent. The several failed breaks above the resistance of the 200-day moving average suggest that the bears are in control. However, if the other charts are any sort of indicator, a break above $6.17 could be the catalyst needed for a reversal in sentiment and likely a sharp move higher.

 
Technical chart showing the share price performance of First Majestic Silver Corp. (AG)
StockCharts.com

The Bottom Line

There are few segments of the financial markets in which traders are able to find shelter from the rising levels of volatility and uncertainty. With that said, the patterns that have recently started to show on charts of major silver assets suggest that the move higher in this niche could be in the early days and poised to continue over the coming weeks or months.

SOURCE: Investopedia