Even though we all know that “good things come to those who wait” and “patience is a virtue”, it seems we have become very impatient, especially where our investments are concerned. Some people persistently choose investments providing immediate gratification versus larger, long-term profit potential, and this can be especially damaging to your retirement. However, buying gold and other precious metals consistently over time, also known as dollar cost averaging, can really pay off over the long term. Buying gold and silver incrementally, and especially when the market is down, results in you owning more when your metals eventually regain greater value.
Asset allocation strategy — sounds a little tricky to most investors, when really it is quite simple. Think of it as your total investment portfolio divided into a mix of different types of assets and asset classes reflecting your investment goals and risk tolerance. One of the keys to a successful mix is to hold assets that historically do not all move in the same direction either up or down at the same time, thereby “balancing” your portfolio. Ideally, when some assets are in a decline, others are performing well, mitigating your losses.
Some asset allocation strategies take a weighting approach that requires you to continually rebalance your portfolio. In this scenario, you would buy more of an asset declining in value, and sell an asset that is increasing beyond a previously determined percent of return or loss. Obviously in this scenario, timing is important and “rebalancing” is continuously required to maintain an ideal mix, bringing us to the subject of gold. Continue reading our market analysis
Gold prices ease back on Friday, but have made nearly a 3% gain this week on a weaker stock market reacting to lower oil prices and global economic concerns.
Read this week’s highlights in the gold market and forecasts for gold prices in the coming weeks:
Gold prices climbed to a three-week high of over $1,200 an ounce Friday, reacting to news of China cutting benchmark interest rates to help stimulate economic growth. Making more than a six percent gain this month on increasing physical demand and signs of nations adding to their reserves, some are convinced that gold has hit its bottom.
Peter Boockvar, Chief Economic Analyst at The Lindsey Group, is one market guru who just called gold’s recent dips a bottom for gold.
He stands behind gold as a true form of currency:
Bottom line, gold is money and is not just a contra dollar play, it is a contra fiat currency asset in a world where fiat currencies are being created to an extent the world has never seen.
Read more about gold’s positive gains and Peter Boockvar’s views in these top stories:
Calling a Bottom for Gold, Barron’s
We are all aware of some of the drawbacks of paper currencies, and over the last several years, we have seen how currencies can be inflated, deflated, overprinted, and devalued. But the latest jaw-dropping news is about currency manipulation, and it’s not just a notion.
Global regulators have fined five banking giants $4.2 billion for attempting to manipulate foreign exchange markets. British banks HSBC and RBS (Royal Bank of Scotland), US banks Citigroup and JPMorgan Chase, and Swiss lender UBS, have all been fined by one or more of the following regulators: Britain’s Financial Conduct Authority, the US Commodity Futures Trading Commission, the Swiss Financial Market Supervisory Authority, and the US Office of the Comptroller of the Currency.
The Financial Conduct Authority reported that “ineffective controls” at these five banks (with Barclays still under investigation) allowed traders to put the banks’ interests and their own bonuses ahead of those of their clients. Continue reading our market analysis
In a recent article, Pentagon insider and bestselling author, James Rickards explains the importance of starting your own, personal gold standard by including physical gold in your long-term savings plan. Establishing financial independence from the actions of the government and central banks is critical to the survival of your hard-earned savings.
“If some scenarios play out, you are going to see the price of gold go up… a lot. And it may go up a lot in a very short period of time. It’s not going to go up 10% per year for seven years and the price doubles. It’s going to chug along sideways, maybe in an upward trend, with a lot of volatility. It will have a kind of a slow grind upward… and then a spike… and then another spike… and then a super-spike. The whole thing could happen in a matter of 90 days — six months at the most.”
Get an in depth understanding of James Rickards’ views on the future for the U.S. economy and gold prices in this article:
Your Personal Gold Standard, Daily Reckoning
In a recent article published on FE Trustnet, Thomas Becket, chief investment officer at Psigma Investment Management, stresses that now is NOT the time to sell your gold. He believes that today’s low price levels and the anticipated geopolitical events standing on the horizon present a tremendous buying opportunity for investors. In fact, he’s confident in saying that…
Gold’s benefits will eventually shine through.
In the short term the price can certainly fall further, but looking further out we expect gold to gain.
He expects gold to gain for these 3 reasons:
- The same reason gold performed so well 2008–2011 — inflation and instability.
- Japan and Europe accelerating their stimulus measures with excessive money printing.
- Increasing demand for gold amongst consumers and central banks in ‘emerging nations’, particularly in Asia.
Read more on Thomas Becket’s expert analysis here:
Becket: Why you are wrong to give up on gold, FE Trustnet
Gold made its biggest one-day gain in five months on Friday, climbing more than 2% in a $30 jump, closing higher than $1,170 per ounce. The surge is due to a weaker dollar and a mediocre jobs report.
Recent low price levels have been very attractive to buyers in China and India, where Bloomberg suspects a great resurgence in demand “may signal an end to the longest price slump in more than a decade.”
PRECIOUS-Gold rebounds 2 pct from 4-1/2 year low after U.S. jobs data, Reuters
The U.S. Mint’s American Eagle gold bullion sales head for a second monthly increase, with a reported 56,500 ounces sold so far in October, its highest monthly sales since January and more than double the demand in September. A Reuters article released this week attributes the increase in sales to heightened global uncertainty and growing interest from retail investors in Asia and Europe.
Read the full report here: