A couple of days ago, CNBC commentator Jim Leventhal made a pretty astounding comment. When asked about gold, Leventhal said he had no interest in it because gold has no uses as a metal.
No uses?
What?
US stock markets had a strong week last week. The Dow Jones capped it off gaining more than 300 points on Friday.
Optimism about a trade deal with China along with increasing expectations that the Federal Reserve will slow the pace of interest rate hikes buoyed the markets.
This has led many pundits to declare that the correction is over. Some have even declared its a new bull market. In his latest podcast, Peter Schiff said that’s not what’s happening at all. What we’re seeing is a typical bear market correction and a recession is right around the corner.
The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.
As uncertainty swirls around Brexit and exactly what that will mean for the economy, Brits have been hoarding gold.
According to a statement by The Royal Mint, the demand for gold bars and gold coins spiked in December as uncertainty about the UK’s exit from the EU grew.
We have seen a significant increase in demand for gold this month and at the end of last year, a trend which we have no doubt is largely attributed to Brexit turmoil and subsequent market volatility.”
Peter Schiff has said it’s not that we have a “volatile” economy right now. We have a bubble economy, and we are at the beginning of a much bigger crisis than we went through in 2008. Peter continued with this theme on a recent appearance on Kitco News with Daniela Cambone noting that things are setting up for gold to shine in 2019. As far as the yo-yoing stock market?
It’s just the air coming out of the bubble. That’s the volatility,” Peter said.
The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.
Total holdings in global gold-backed ETFs finished above $100 billion in 2018, according to the latest data by the World Gold Council. It’s the first time ETF total gold holdings have eclipsed the $100 billion mark since 2012.
Globally, ETFs added 69 tons of gold in 2018, bringing total holdings to 2,440 tons valued at $100.6 billion.
2018 ended up as the worst year for US stocks in a decade. And last month ranked as the worst December on Wall Street since 1938. But if you owned gold, things weren’t quite as painful for you as they were for investors without any of the yellow metal. While stocks sagged, gold rallied.
In fact, gold outperformed the S&P 500 in December, through the fourth quarter, and over the entire year.
You know how to win the New Year’s resolutions game?
Don’t make any.
It’s as simple as that. As the saying goes, don’t make promises you can’t keep. Don’t write checks your willpower can’t cash. Don’t overplay your hand.
This strategy has certainly worked for me.
The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.
