Gold’s Taking Off Again… …Here’s why you should ignore it. Dear John, There are a number of reasons why gold is moving higher at this very moment. But the most important one is the one you need to ignore.
As I write, gold is up over $10, having at one point barreled through the critical $1,300 ceiling on a spot basis. Silver is leaping higher along with gold.
Why the big move today?
Yes, the ADP jobs report this morning was a big downside miss, showing the slowest pace of jobs creation since May. (And this is foreshadowing the possibility of a big miss in Friday’s crucial nonfarm payrolls report for October.) Yes, the risk, however small, that the Fed would raise rates at the just-concluded November meeting has passed.
And yes, clearing $1,300 has given gold a big technical and psychological boost, and probably triggered some short-covering demand. But perhaps the biggest reason for the surge into gold is the corresponding surge in Donald Trump’s poll numbers. Of course, this is due to the latest, stunning development in the Hillary Clinton email scandal.
As you know, the FBI announced last Friday (conveniently, in the middle of our New Orleans Investment Conference) that they were reopening the investigation into her home-brew email server controversy after discovering many thousands of new emails on the computer of none other than Anthony Weiner.
As Charles Krauthammer noted in his speech the day after this news broke, if you had written these developments into a movie script, you would’ve been laughed out of any studio in Hollywood.
We live in strange times, indeed.
But while markets hate uncertainty and these developments have sparked a rush into gold, you can surely characterize this as the sort of geopolitical flashpoint that I’ve always advised against using as the basis for an investment in the metal.
These things blow over in a flash, and the sharpies trading the gold market will almost always get out of the play well before you do, and well in advance of the almost inevitable correction when things calm down. The only factor you should consider when deciding whether to buy gold is currency depreciation. By this I don’t mean retail price inflation. Rather, I’m talking about monetary inflation — the rapid expansion of fiat currency.
The good news for gold bugs is that this is going on right now, in virtually every developing economy in the world save the United States.
And, importantly, there’s a very good chance that the Federal Reserve will soon be forced to reignite its expansionary policies. Stunning Predictions From The New Orleans Investment Conference Our recently concluded 2016 New Orleans Conference featured dozens of today’s top experts, including many old favorites along with some exciting fresh faces.
I was especially pleased with the contribution of one of our new speakers, Peter Boockvar. As you know, in his many appearances on CNBC Peter has voiced a somewhat controversial opinion on where interest rates are going: He’s predicting that they’ve bottomed, and that the 30-year bond bull market is ending.
That’s not what most of the so-called experts are saying on CNBC these days. But Peter backs up his view with an avalanche of irrefutable data, and predicts that the end game will result in soaring gold prices as the Fed is forced to return to quantitative easing.
We’ll see. Regardless, I thought Peter’s presentation — as well as those of the dozens of other experts that graced our stage — provided forecasts, strategies and specific tips that are available nowhere else. If you weren’t able to make it to this year’s New Orleans Conference to enjoy this amazing experience in person, you can benefit from the next best thing: our audio and video recordings. We offer video recordings of some of our most popular General Session presentations on physically-delivered DVDs, as well as convenient on-line streaming.
In addition, all of our General Session presentations are available in audio recordings on a CD-ROM that you can play in your computer.
In all cases, while you miss out on all the give-and-take and camaraderie, you’re able to get this valuable information for pennies on the dollar as compared with actually attending the event.
These recordings aren’t yet available for ordering, but keep checking our website, NewOrleansConference.com, for availability. In the meantime, you can call us toll free at 800-648-8411 for details.
Finally, our popular year-end, double-issue edition of Gold Newsletter will feature all of my top picks for the new-year rebound that I expect in metals and mining stocks. Last year’s picks quickly soared in value, with some multiplying as much as five times in price within just a few months. If you’d like to ensure you get all these valuable picks, as well as my coverage of the highlights from the New Orleans Conference, I’ll let you take advantage of the special half-price rate that I just offered Conference attendees.
Just CLICK HERE to get Gold Newsletter through this limited-time half-price offer.
I’m confident that the new gold bull market will hand us fortunes over the next few years, and you need to be well positioned.
Just don’t buy because of the election! All the best,
Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference |
