Watching the price action for gold go above $2000 and crash below, go above again and crash below can make you nauseous or at the very least give you neck cramps. I want to encourage you not to watch the price action so closely. If you do, you find yourself in a place where you’re unable to take action to either buy or sell much like a deer gets frozen by the headlights on a road in the Minnesota winter.

You have to ask yourself if you own gold primarily for price appreciation, or for the myriad of other reasons that are equally as good if not far better than price alone. 

 Don’t forget:

1. Gold is private.

Name another asset that doesn’t require you to cite your tax identification number.

2.  It has no counterparties.

Gold doesn’t owe anybody anything. All Fiat currency, including the dollar, are dependent on the issuing government. Stocks are dependent on the underlying company. Bonds are dependent upon the performance of the debtor. Every other asset basically has some sort of a counter party that has to perform.

3.  It is tangible.

It’s not paper, it’s not digital.  You could hold it in your hands and for 4,000 years people have known that when they hold gold in their hands they’ve got something of real value.

4.  It is transportable.

You can take it fundamentally anywhere, anytime. 

5.  It is universally accepted.

People in every nation on Earth buy sell and trade gold. Some countries to a far greater degree than the United States.

6.  It is infinitely divisible.

It can be subdivided into grams or portions of a gram to sizes as large as 400 trillion ounces.

8.  Gold is immutable.

It can’t be changed and it cannot be artificially created.

7.  It is is a hedge.

Foreign governments around the world own gold as a hedge against their own currencies and most especially the US dollar.

9. It is a store of value.

Gold today will buy the equivalent of the same men’s suit the same family car and the same family home that it did 90 years ago.

10.  Gold makes a great pillow.

When you have gold, you inherently sleep better at night.

In conclusion, gold is not about the price and the appreciation or short-term decline in values that we’ve seen recently. Gold is about having a prudent percentage allocation of your net worth in tangible precious metals.

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In a noteworthy rebound, both gold and silver prices rallied Thursday morning in response to signals from the Federal Reserve indicating a shift towards a more accommodative monetary policy. This positive momentum comes after a week and a half of declines in the prices of both precious metals, with gold hitting all-time highs on December 3rd before experiencing a subsequent drop back under $2000.

The yellow metal had faced a downward trajectory following its record-breaking highs, making this recent reversal particularly significant for investors looking to regain lost ground and creating a sense of optimism for future price growth.

Silver, often called “the poor man’s gold,” also witnessed a notable rally. The white metal had similarly experienced a price dip in the weeks following the recent peak in gold prices. However, with the growth in the price of silver, optimism for continued growth has increased.

The Federal Reserve’s indication of a looser monetary policy has prompted investors to reassess their portfolios, especially given the potential impact on various asset classes. The central bank’s move reflects a broader effort to stimulate economic growth and address prevailing headwinds.

This positive shift in the precious metals market, particularly following the recent volatility, underscores the intricate relationship between central bank decisions and financial markets. As investors navigate an environment marked by economic uncertainties, the renewed interest in gold and silver as safe-haven assets suggests a rekindled confidence in these commodities’ ability to hedge against rampant inflation and currency devaluation. 

The coming days will reveal whether this trend continues or if new developments will reshape the landscape again.

The post Gold and Silver Rally as Federal Reserve Signals Looser Policy appeared first on Fisher Precious Metals.

Gold prices achieved record highs over the weekend, breaking the all-time high and surpassing the $2,100 mark. Investors witnessed an unprecedented rally as current economic uncertainties and geopolitical tensions increased demand for safe-haven assets. This historic rise in the price of gold started its growth at the beginning of October. This rise first started not long after the Hamas attack on Israel.

While the Monday trading session brought a correction, bringing gold back down under $2,050, analysts are optimistic about the potential for sustained growth. Investors and experts closely observe market dynamics, anticipating the recent surge to indicate a broader trend. The correction is seen as a natural market response since profit-taking and short-term adjustments are common occurrences. The question that can arise after a large jump followed by a decrease is where do we go from here? Should we be expecting gold to keep dropping? Will gold jump back up again? After large price jumps, investors often liquidate to ensure profits before reinvesting in the market. So it would not be reasonable to immediately think that gold will keep falling. Now that gold has shown it can break the $2,100 mark, it is very possible if even likely to see gold jump again and achieve new record highs in the near future.

Investors should stay informed and monitor market conditions, as the recent surge in gold prices raises expectations for potential further growth in the coming weeks. Although nothing is guaranteed, no one should be surprised if gold once again jumps over $2,100.

The post Gold Achieves Record Highs Surpassing $2,100 appeared first on Fisher Precious Metals.

The price of gold has surged past the $2,000 mark and keeps rising as it gets closer and closer to its all-time high. Gold’s positive surge defies expectations amid high interest rates and bullish economic data. However, gold has proven its resilience, which begs the question of how reliable these economic indicators are.

The unexpected strength of gold, traditionally considered a safe-haven asset, highlights the complexity in the current economy. Historically, high interest rates and positive economic projections would lead to a decrease in interest for gold rather than an increase. This contradiction begs the question, what happens when the Fed inevitably drops interest rates? What kind of impact could an adjustment in interest rates have on an already increasing gold price?

Investors are closely monitoring developments in the gold market as they assess the potential implications for broader financial markets. The rally in gold may prompt a reevaluation of prevailing economic narratives and strategies as traditional correlations between interest rates, economic performance, and gold prices are being tested. This also raises questions about the legitimacy of the claims that the economy is moving in a positive direction.

As the situation unfolds, financial analysts and investors adjust their outlooks, recognizing that gold’s resilience could indicate underlying uncertainties not fully captured by current economic data.

The post Gold Surges Past $2,000 Despite Economic Data appeared first on Fisher Precious Metals.

Another significant milestone has passed as the United States’ annual interest payments on its national debt push past an unprecedented 1 trillion dollars. To offer perspective, the nation spent $867.94 billion on its military in 2022, leaving over a 130 billion dollar gap between our nation’s defense and our interest payments. This financial milestone is a glaring indicator of the alarming trajectory of government spending and the bill being pushed on America’s future.

The soaring interest payments result from a combination of factors, including escalating interest rates and the enormous size of the national debt. It should not be surprising when our interest rates keep rising that our payments will keep rising with them. The relentless accumulation of debt and borrowing practices continue regardless of the impact on the future of our nation.

This milestone underscores the urgency for reevaluating fiscal policies and spending practices. Analysts are calling for a comprehensive approach to address the root causes of the escalating debt, emphasizing the need for responsible financial management to safeguard the country’s economic stability. However, the temptation to keep adding to the national debt to pay for government programs and other wasteful spending is too high, as no one wants to be the one who took away the treats, even if those treats are unhealthy for the people receiving them.

The post U.S. Debt Interest Payments Eclipse 1 Trillion appeared first on Fisher Precious Metals.

Gold, a traditional safe-haven asset, has seen its prices drop (after a surge in demand took place immediately after the attack by Hamas that began the ongoing conflict in Gaza). Multiple factors may influence this retreat.

Of particular note, investors are increasingly speculating that the ongoing conflict in Gaza may remain localized. This belief is a significant shift, as geopolitical tensions often boost gold prices. As people become more optimistic about the Middle East, there is less inclination to seek refuge in a safe-haven asset. This has led to a retreat in the gold price as the demand shrinks.

Another potential reason for the recent gold price retreat is profit-taking. Investors may be exiting gold positions while they can realize a profit. This widespread profit-taking could account for the drop in the gold price.

Will it continue to retreat? The answer to that question is hard to determine. There is still the potential for further geopolitical fallout from the Israel-Gaza conflict, and uncertainties like China’s actions regarding Taiwan still exist. Anyone claiming to know the exact future outcome is likely misleading you because no one can predict with certainty.

This is why dollar-cost-averaging is so important. Instead of reacting to market fluctuations or speculating about the future, consider a consistent approach. Purchase the amount of gold you desire regularly, whether monthly, quarterly, or another set schedule, and do not be swayed by price movements.

In conclusion, gold’s retreat is part of its dynamic nature in financial markets, but its enduring appeal remains as a store of value. The evolving Gaza conflict scenario may continue to influence gold prices in the future, but it is still unclear what the final outcome will be. However, acquiring the metals you desire is crucial without being overly influenced by a constantly fluctuating market.

The post Gold Prices Retreat After Safe-Haven Surge appeared first on Fisher Precious Metals.

All the financial news channels are talking about gold.  Main Street and Wall Street are both turning more bullish.  Gold has recently rebounded from almost $1800 to $2000, now pulling back slightly to $1985 to consolidate gains.

Anyone who has dealt with me knows I am not a price prognosticator, and if anything, I have, through my 28 years in the business, been very conservative in my price projections.  Why the newfound bullishness (referred to as ‘hopium’ in the crypto space)?

8 Reasons to Believe Gold Will Keep Rising

·  Look how well gold has done in the face of an extremely strong dollar.  For most of my precious metals career, a strong (or very strong) dollar is a death nail for gold

·  Gold doesn’t pay interest.  You can now easily get 5.5% on your money in short-term treasuries.  Anytime in the past when cash returns “good” yields, it has been bearish for gold, yet it is only $85 off its all-time high in USD terms.

·  You may not know that gold is today at an all-time high against ALL major currencies around the world – it has already broken out from previous highs

·  Central banks are buying gold in droves while simultaneously expanding their monetary base through printing.  Maybe they know something???

·  If the Fed continues raising the Fed funds rate, they risk breaking the bond market.  Smart money has finished shorting bonds.  We might see another 25 basis pt rise in December, but the consensus is that’s the last.  The Fed may or will have to pivot if the economy shows overt signs of cracking.  Gold will rise when interest rates fall (treasuries don’t look so attractive).

·  If inflation remains elevated, gold will do well

·  If our proxy or direct entry into these world conflicts (Israel, Gaza, Lebanon, Iran, Syria, Ukraine / Russia, China / Taiwan, and whoever is next) continues, gold will do well.  REMEMBER:  We have a very myopic view here is the U.S..  But what if you lived in the Middle East, Asia, the former Soviet Union, or Argentina (what a disaster), where would you put your money?  In the local currency or gold?

· Gold is private. Christine Lagarde, President of the European Central, is now rolling out a CBDC.  Transparency in – Freedom and privacy out.

There are more items I could add to this list. 

What Would Cause a Decline?

·  If the yield curve re-inverts (the 10-year yields more than short-term treasuries), that will confirm a recession/stagflation/deflation (we are already in the beginnings of a recession now.

·  The stock market is drawn down 10-35% – all assets will sell off, including (paper) gold.  Investors will indiscriminately go to cash, including their paper gold holdings (physical investors rarely sell).  History shows that gold doesn’t sell off as deep and rebounds quicker.

·  With 33.5 trillion in current debt and 200+ trillion in unfunded liabilities, and the U.S. becomes truly insolvent in the eyes of our trading partners, could gold be recalled?

·  Peace and harmony return to the equity, bond capital markets, the geopolitical landscape, and the debt is paid off – bad for gold, but we would be okay with that.

Conclusion

I believe there is a strong chance we will finish 2023 at $2100 or above and 2024 at $2500 or better.

Finally, please remember that we all want our gold (and silver by proxy) to increase in value.  But do not forget the privacy, insurance, and tangibility it offers.  It helps to cure insomnia in this insane world.

BONUS:  If you have read E.B. Tucker’s excellent book “Why Gold Why Now” (if you haven’t, I would very strongly suggest it), and/or seen E.B. on YouTube, you know that he is both enlightening and entertaining.  He has a free newsletter published twice monthly, packed with excellent information (and a little humor).  Subscribe here The Tucker Letter

The post GOLD: HIGHER FOR LONGER? 8 Reasons Why Metals are Headed Higher! appeared first on Fisher Precious Metals.

Last week, gold surged significantly after the terrorist attacks from Hamas on Israel, marking its best performance in months. Experts believe it may surpass the $2000 per ounce mark by the end of 2023. 

Several factors may keep driving the price up: 

Economic Uncertainty

The global economy remains unstable due to various factors, such as inflation concerns, market fluctuations, and the many geopolitical tensions that are currently taking place. Investors often do and have been turning to gold because of these economic issues and concerns. 

Inflation Concerns

Speaking of economic concerns, there is the very real issue of inflation. Gold is a traditional hedge against inflation, and the fear of rising prices and currency devaluation attracted investors seeking protection against inflation. The current inflation rate is at 3.7%, an improvement from last year but still higher than people should be comfortable with. People keep flocking to gold to protect their wealth as prices of other items keep climbing.  

Geopolitical Tensions

Ongoing global disputes and conflicts, such as those in Ukraine and Israel, have increased the appeal of gold as a safe-haven asset. The war between Russia and Ukraine has no signs of slowing down, and the conflict in Israel could lead to unrest in the entire Middle East. With the threat of even more violence, people worldwide are turning to gold to protect assets, and this increased demand affects the gold price even here in the United States.’

Conclusion 

In summary, there is plenty of potential for gold to keep climbing as we get closer to the start of 2024. This is far from a guarantee that gold will hit $2000, it is impossible to be sure, however, if it does reach that point again this year, no one should be surprised.

The post Gold Had Its Best Week in Months, But Could It Break $2000?  appeared first on Fisher Precious Metals.