Dollar Weak, Gold Investments Strong
Posted By Isaac Nuriani
We often point out gold strengthens when the dollar weakens. One reason is that a punk dollar reminds us it’s paper, which means it takes a leap of faith to assign it value.
The weaker the dollar, the more faith it takes. All ye of little faith in paper should be praised for letting your eyes, and wallets, turn to gold.
Precious metals – gold and silver – have been real money for millennia, and I’m pretty confident this will be true for as long as humans walk on two legs. Here’s what’s happening now…
Let’s break away from the cosmic reverie and acknowledge that gold just marked its longest winning streak (five days!) in the last two months. On July 20, gold settled at $1245.50 an ounce, up $3.50 for the day and 1.4 percent for the week.
At the same time, the U.S. dollar is tanking against the euro, which might mean that the Brexit panic has run its course. The reason for the euro’s strength is an indication from the European Central Bank that it will stop depressing interest rates this fall. Thus, people would rather own euros instead of dollars. And smart people (ahem) would rather be investing in gold and silver.
Keeping the Faith in Gold Investments
Last week’s blog pointed to gathering economic and political turbulence, and things got only worse in the intervening seven days. The Russian scandal is sucking up all the energy in Washington, making it much harder to drain the swamp.
Now it looks like all those congressional promises of repealing Obamacare were nothing but cheap talk. And where the heck is that tax cut we’ve been promised, senators? No wonder folks are snapping up gold – it’s getting harder to keep the faith in anything else.
Stocks look insane, constantly making new highs while their underlying fundamentals weaken. Once the next bear market starts, we’ll all be extremely happy we put a percentage of our wealth into precious metals.
One of the Best Gold Investment Companies
We believe the best way to grow your gold stash is investing in gold or silver through an Augusta® Gold IRA, which is a self-directed IRA that lets you deduct your contributions up to $6,500 a year ($5,500 if your younger than 50). With a gold IRA rollover, you take an important step to protect your retirement savings from all those things that like to weaken our economy.
With IRA gold or silver, you gain value tax-deferred – you only pay taxes on withdrawals, which you don’t have to begin until you reach age 70 ½.
If you haven’t started already, there is no better time than now to begin investing in a physical gold IRA, and Augusta Precious Metals is one of the best gold investment companies. We work hard to treat our customers right by committing to the golden rule: treat people the way you’d like to be treated – like family. Contact us today!