Precious Metals Help Overcome Market Stresses
The volatility that plagued the stock market for most of 2018 went into overdrive in December. The U.S. dollar’s role in the global economy may be dwindling. But investors who were alert to these troubles and savvy enough to allocate a portion of their money to gold were not nearly as disappointed as those who remained “all-in” on equities. Now, heading into 2019, it appears market upheaval is just beginning, and gold looks stronger than it has in a long time.
- One of the biggest stories going into the new year was the stellar show put on by gold to close out 2018. Bloomberg points out the metal’s December rally was its best one-month gain in nearly two years. They note that the good times for gold are expected to continue; the Bloomberg report quotes analyst Benjamin Lu of Phillip Futures, among others, who says the safe-haven demand for gold will “remain vigorous” through the near term.
- If you have any doubt about gold’s potential to keep portfolios running strong during both short- and long-term horizons, an article from mutual fund company U.S. Global Investors will clarify things for you. Frank Holmes, CEO of U.S. Global, delivers clear bottom-line results: Through the end of 2018, gold bested the S&P 500 “for the month, quarter, year and century.” Don’t believe it? Check out the piece for yourself here.
- The world is moving away from the U.S. dollar. The latest supporting evidence is news from the International Monetary Fund (IMF) that the U.S. dollar’s allocated share of global currency reserves is now at a five-year low. And it turns out, the dollar is being threatened by more than just the Chinese yuan. The IMF points out the euro’s share of reserves has reached a four-year high and the Japanese yen’s share is now at a 16-year Look to Reuters for more details.
- Precious metals are making a strong move to the upside, but silver is once again being overlooked by all of the attention gracing gold. Could that be a grave mistake by investors this time around? Silver has nearly doubled gold’s return over the past 30 days, but the truly big story is the prediction from precious metals analysts that silver could increase as much as 40% in 2019. For details, check out the latest blog article from Augusta.
Gold is a safe-haven asset effectively uncorrelated with the stock market and other asset classes. It often will soar when stocks and even bonds and real estate are under tremendous pressure. Precious metals can help investors fight the effects of economic stresses such as those facing the stock market and the U.S. dollar. Do you own gold or silver right now? If so, do you own enough? For more information, call Augusta Precious Metals today at 855-242-4121 or visit Augustapreciousmetals.com.