Gold has had a tough few months. A dollar rally and rising interest rates have weighed on the yellow metal, driving the price down nearly 8% over the last three months. But as Mike Maharrey pointed out on last week’s Friday Gold Wrap podcast, gold is on sale right now and that means a buying opportunity. Smart shoppers shop sales. Now may the be the perfect time to buy gold.
Mike isn’t the only one who sees opportunity in the gold market right now. Some people in the mainstream see it too. In fact, a CNBC Trading Nations headline yesterday declared that even though gold is having an “ugly year,” it has led investors to a buying opportunity.
Gold got off to a roaring start in 2018, with the price rising more than 4% during the first quarter. But the yellow metal finished June down the same amount and has continued to fall during July. Despite the weakness in gold over the last couple of months, the World Gold Council says several factors provide some optimism for the rest of the year. In its mid-year outlook report, the WGC pinpointed three primary macro trends that will likely boost gold in the coming months
Have you ever thought about owning gold?
That may seem like a strange question. You’re probably thinking to yourself, “Why everybody has at least thought about investing in gold.” But that’s apparently not true – at least not in Australia. According to a poll conducted by Australia’s leading gold bullion company, 45% of Australians have never even thought about investing in physical gold.
The fact that so many people have never even thought about investing in gold explains why 85% of Australians don’t own any of the yellow metal.
In another sign the stock market bubble could be near the popping point, investor margin debt hit a new record high, even has the Dow Jones has sold off around 2,500 points since highs earlier in the year.
According to the Financial Industry Regulatory Authority (FINRA) margin debt hit $669 billion in May. That represented a 2.9% increase from April.
What exactly is margin debt and why does it matter?
European gold-back ETFs continued to add yellow metal in June, but globally, total holdings fell for the first time in nearly a year as gold flowed out of North American and Asian funds.
Global gold-backed ETF holdings fell by 49.3 tons to 2,434 tons in June, according to the latest data released by the World Gold Council. It was the first month of net outflows since July 2017.
Even with the sharp June drop, total ETF gold holdings globally remain up on the year by 63 tons.