Taking Gold Seriously

There are seasons where it’s a better time to buy gold than other times of the year. On average, gold tends to surge during the first couple months of the year. The price tends to cool down through the spring and early summer, then it takes off again in the late summer.  Soon, if the trends of the past 45 years play out, we’ll enter one of the top seasons for rising gold prices. 

In precious metal bull markets, silver, the little brother, typically lags it’s big brother, gold. After a slow start, silver catches up to gold and then eventually passes it. Once silver is ready to move, the rallies can be breathtaking.  This pattern is just starting to repeat itself in the current precious metal bull market. The gold/silver ratio is the barometer closely watched by precious metal investors. It measures how many ounces of silver it costs for one ounce of gold. Over recent years, the gold/silver ratio has fluctuated between 70-1 and 90-1, much higher than the historical average of 40-1. In the last few months, gold has been massively outperforming silver and the ratio spiked on March 18th 2020, reaching an all-time high of 120-1. Silver is now awake and starting it’s race to catch up to it’s big brother, gold . Since March 18th, silver has outperformed gold, dropping the gold/silver ratio to 106-1. As the gold price continues to climb in this current preciou

David Rosenberg, Chief Economist & Strategist of Rosenberg Research, is one of North America's most well known economists. As Chief Economist for Merrill Lynch, in 2005 he was one of the few economists that warned of a U.S. housing bubble and that it would pop.  Rosenberg has consistently recommended to have gold in your portfolio and predicts gold will reach $3,000 an ounce over the next few years.  August 2019  (as gold broke out of a 6 year base)   Gold is going up in every single currency. It's telling you it's a bonafide and durable bull rally. There are 2 parts to the story  . . . there's the fact that real interest rates are going down and in some cases going negative. That's hugely supportive for gold because gold has that interest correlation with interest rates. When interest rates goes down, gold goes up . . .   You are already starting to see flows going into the gold market. Central banks, especially in Russia and in China are bol

GDX, the ETF of major gold miners, broke through resistance of $32 this week, a new 7-year high. While gold is not far away from it's all-time highs, GDX can still double from here before it reaches it's all-time highs of $66 from September 2011.  To quote John Hathaway, one of the world's leading gold equity managers:  Gold mining stocks continue to lag the metal and, in our opinion, represent a compelling investment opportunity at this moment.

Gold or the stock market? The annual return of gold has outperformed the S&P in the last year, the last 3 years and the last 5 years.  Asset YTD (4/14/20) 1 YR 3 YR 5 YR Gold Bullion 13.8 34.2 11.3 8.0 S&P 500 -11.8 -2.0 7.2 6.6

What does Ray Dalio, the legendary founder of the world's largest hedge fund, have to say about owning gold? Gold should be a part of everyone's portfolio to some degree because it diversifies the portfolio... If your investment portfolio doesn't have at least 10% of the yellow metal, you don't know history. Ray Dalio is spot on ... throughout history gold shines. For thousands of years, gold has been viewed as the most valuable commodity worth owning. While other currencies have come and gone, gold has always maintained it's value. In the modern era, gold is what societies and governments trust the most as a reliable safe haven, especially during times of uncertainty and crisis. So why have at least 10% of your investments in gold? When events cause the value of paper investments (stocks, bonds and currencies) to decline, the price of gold typically increases. Owning gold is insurance against unforeseen events while providing meaningful diversification to y