Gold Soars Past 5-Year Highs – It seems the cat has been let out of the bag, with gold prices breaking out of 5-year highs in the week on the heels more Federal Reserve theater with President Donald Trump. At this stage, it’s clear the central bankers know they will have to cut rates, so they are just holding out and stalling as long as they can to slow the drastic outcome that may result in the short term.
Anyone taking note of the How To Protect Your 401k recognizes that a slowdown continues to be ongoing for the last half a year minimum. Central banks around the world from Australia, to India, China, the European Union, and today Russia, have been moving to reduce rates to keep their economies from tanking for now.
Even funds manager BlackRock within australia is now shorting the Australian Dollar because it foresees the Australian Central Bank lowering interest rates down to a ground-scraping .5%.
Silver Not Lagging Far Behind Gold – Silver is another great option, rising 3% in the past week and breaking key resistance. Silver is another fine choice to consider since there is a continuing shortage of silver miners in the industry, meaning ones retail investors head into silver in large numbers you will have too little supply which will play a role in huge upside inside the shiny metal.
Additionally, Silver is wonderful because it is small enough for barter/exchange for products or services in desperate situations, and in addition it qualifies for precious metals IRAs. At the same time we percieve the disappearance of a yield curve within the Treasuries markets, as now the 3-year bond yields a lot more than all other bonds with the exception of the 30 year. This mass bond buying is clearly being done by large institutions to help keep yields so low that folks is definitely not prepared to park their money in a safe place, but alternatively keep it on the stock market until the central bankers all finally use up all your tricks and determine to permit it fall
Global Political Instability on the Rise – With the recent posturing and threats made on both sides from the current US/Iranian conflict inside the Strait of Hormuz, the buying price of oil could be expected to see a rise as the body water sees 10 – 15% of total world oil production go through over a yearly basis. It seems like the West has its heart set on some form of wphxrd military confrontation as the rhetoric increasingly turns to missiles fired and tankers attacked.
No one understand how this whole thing will experience, though with Gold IRA Rollover weakness and increasing political strife, it can make much more sense to keep silver and gold, especially with the current bursts in price to interrupt from 5-year selling prices.