Posted By Isaac Nuriani
Mr. Iuorio told CNBC: "I'm a longer-term bull in gold and, if you look at the long-term chart, the trend is still higher. What the Fed said yesterday is disconcerting to the market, and that's why the dollar rallied so hard."
Iuorio is referring to the Federal Reserve’s June 14 0.25 percent rate hike. This was an expected move. It broadcasts the Fed’s concern that we have a strengthening economy that will lead to inflation. The rate hike makes borrowing more expensive, and therefore makes it harder to finance profitable projects. It also strengthens the U.S. dollar, which hurts American exporters by making their goods more expensive in local currency terms.
However, suppose the Fed is wrong? That’s what Iuorio believes, and he sees future deterioration that will cause the dollar to drop. As the price of gold goes up when the dollar loses value, Iuorio predicts investors will turn to investing in gold and silver — and other commodities.
On the political front, the FBI witch hunt into President Trump continues. Does anyone really think the Republican Congress is going to impeach Trump? We believe this is a big nothingburger, but nonetheless could have the capacity to roil markets before the affair is resolved. That’s likely to be good for gold, which is where many people put their money during tumultuous times.
Tons of investors believe the best method of investing in gold is a tax-favored account, such as an Augusta® Gold IRA. That’s because you get to deduct all your contributions to our physical gold IRA — up to $6,500 a year (if you are age 50 or older). Furthermore, your IRA gold investment accumulates value tax-deferred, meaning you only pay taxes on the money you withdraw from any gold IRA you buy at Augusta Precious Metals. By the way, you can also purchase silver in your IRA, so precious metals investing was never easier. Augusta is a leader among gold investment companies. Perform a gold IRA review online yourself, and you’ll see Augusta Precious Metals is well thought of by a host of gold investment customers. So don’t wait – open an Augusta® Gold IRA or Augusta® Home Delivery™ Gold IRA today!
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