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Weekly Touchpoint: U.S. Political Upheaval Could Boost Price of Gold

Posted By Isaac Nuriani |

The price of gold continues to move sideways, hovering around $1,500 an ounce. Although the metal has yet to resume its meaningful upward surge, it also shows no interest in giving back the gains it has made over the previous three months. Many experts see the current period as no more than a current pause in what they believe will be an eventual breaching of the $2,000-an-ounce level. Not only do all of the factors that sparked the latest jump in precious metals prices remain intact, but more recent influences, such as the decision by Democrats to pursue a formal House impeachment inquiry of the president, are poised to help strengthen the price of gold even more. Our look this week at important news for practical retirement savers begins with one expert’s view of how he believes impeachment worries could affect gold.

  • Gold’s price spike in the wake of the House of Representatives’ announcement that a formal impeachment inquiry of President Trump would be opened certainly got the attention of traders, some of whom are now suggesting a deeper commitment to the metal on that basis alone. “The move in gold looks convincing enough to warrant some attention as it’s unlikely the political storm clouds over Washington are about to dissipate any time soon,” wrote Stephen Innes, Asia-Pacific market strategist at AxiTrader, in an analyst note. Innes added that impeachment worries “might continue to weigh on equity market sentiment, possibly send U.S. yields lower and could undermine confidence in the U.S. dollar.” It’s another reminder of gold’s potential to thrive during uncertainty, regardless of where that uncertainty originates from. Bloomberg has more.
  • Emmanuel Roman, CEO of Pimco, one of the world’s largest money managers, with a whopping $1.8 trillion in assets, predicted at a conference last week that the U.S. economy will slow to just 1% growth by the first half of 2020 as the ongoing trade war with China continues to weigh heavily. As Roman puts it, “Obviously the big elephant in the room is the trade war with China and how it will resolve itself.” Noting other troubles, including Brexit and growing concerns about an all-out shooting war between Iran and Saudi Arabia, Roman revealingly said, “There’s only so much monetary policy can do to reignite growth.” Get details from CNBC.com.
  • Not only is there no real end in sight to trade conflict between the world’s two biggest economies, but now one Federal Reserve Bank president says the trade war between the U.S. and China effectively has killed free trade going forward. In a recent speech detailed by Yahoo Finance, Fred Bullard, who oversees the St. Louis Federal Reserve Bank, said it’s time for everyone to “prepare for a future with somewhat higher tariffs and non-tariff barriers than we have seen historically.” Bullard added that the ever-worsening trade clash “is a reversal of the trade liberalization consensus that existed in the United States for the last 75 years” and that, notably, there’s no other nation prepared to take the lead on free trade.
  • Do you plan to retire? If so, you’re close to being in the minority. A recent poll reveals nearly half of all Americans say they will work into their golden years. A closer look at the data suggests the dream of enjoying a relaxed and prosperous retirement has become the casualty of a severely weakened economy. That means at least some of those who claim they will keep working because they want to remain productive may not be telling the whole truth. To learn more about this concerning trend and how owning physical gold and silver can help make sure your future includes an actual retirement, read Augusta’s latest blog article here.

There’s no shortage of catalysts capable of sparking a renewed push by gold and silver to significantly higher price levels. Trade troubles, global economic weakness and geopolitical uncertainty are only three of the influences that remain highly threatening to the good order of traditional markets and assets – and very rewarding to precious metals. Now you can add significant political discord to the list. Legendary asset manager Mark Mobius said recently that the beneficial factors for gold are so abundant that everyone should be buying the metal now, regardless of price. Have you purchased yet? If not, call Augusta Precious Metals at 800-700-1008 or visit Augustapreciousmetals.com.

Augusta cannot guarantee, and makes no representation, that any metals purchased by a customer will appreciate at all or appreciate sufficiently to make a profit, and there is no certainty that any metals can be sold for a profit. The future value of the coins you purchase cannot be predicted. You could lose money. Don't purchase Augusta products with money you can't afford to lose. Prices may rise and fall over time or rapidly. Past performance of any coin does not guarantee future results. Premium coins are sold for more than the value of the precious metal they contain. Augusta's prices and buy-back prices are determined and controlled by Augusta. This purchase is speculative and unregulated.