Gold Breaks Past 5-Year Highs! Is This the Ultimate Signal that the Recession Has Landed?

With all the recent talks of interest rate cuts by the Federal Reserve and traders already factoring this into the price of stocks, gold has gone up by 10% in the last 2 months, but this may only be the beginning.

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 this week on the heels of more Federal Reserve theater with President Donald Trump. At this point, 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 could result in the short term.

Anyone paying attention to the real global economy knows that a slowdown has been ongoing for the last 6 months minimum. Central banks around the world from Australia, to India, China, the European Union, and now Russia, have all been moving to lower rates in order to keep their economies from tanking for the time being.

Even funds manager BlackRock in Australia is now shorting the Australian Dollar as it foresees the Australian Central Bank lowering interest rates down to a ground-scraping 0.5%.

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 option to consider since there is an ongoing shortage of silver miners in the industry, which means ones retail investors head into silver in large numbers there will be a lack of supply that will contribute to huge upside in the shiny metal.

Additionally, Silver is great because it is small enough for barter/exchange for goods and services in an emergency, and it also qualifies for precious metals IRAs.

Global Political Instability on the Rise

With the recent posturing and threats made on both sides of the current US/Iranian conflict in the Strait of Hormuz, the price of oil can be expected to see a rise as the body of water sees 10 – 15% of total world oil production pass through on a yearly basis. It seems the West has its heart set on some type of direct military confrontation as the rhetoric increasingly turns to missiles fired and tankers attacked.

No one know how this whole thing will develop, but with underlying world economic weakness and increasing political strife, it makes even more sense to hold gold and silver, especially with the recent bursts in price to break out of 5-year price ranges.

Do what you can to prepare your investments now, while you still can.

Protect Your IRA or 401k from an Economic Collapse with a Gold IRA Rollover

 
A Gold IRA:

*Can protect you from the devaluation of the dollar due to un-payable US national debt
*Helps you make money even as stock markets decline, drop in price, or even crash
*Provides all the same tax benefits of a traditional IRA or 401k

Click here to receive a free Gold IRA investment kit or Call 1 (844) 912-1706

IRA and 401k Rollover to Gold

Also Watch: Last Week’s Video Predicting Gold Price Breakout
 

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In This Volatile Tweet-Sensitive Stock Market, Should I Buy Bonds as a Safe Haven Investment?

Trump’s tweets and China trade talks seem to be the order of the day and the main perceived market mover, but it’s never that simple. The US economy is at the end of its latest business expansion cycle spanning almost 10 years, and an inevitable recession is due sooner or later.

Should I Buy Bonds?

 
Many investors, potential retirees, pension holders, and people with 401ks and IRAs will find themselves pondering if they should sell stocks and buy bonds at the onset of a financial crisis. Today we’re going to cover the pros and cons of shifting your funds into bonds.

Bonds are pretty safe, first of all. But sometimes, like now, they may not even keep pace with inflation. So an investor may have to decide whether they want to lock in a slight loss over 10 years or keep their money in riskier financial instruments and assets like stocks, mutual funds, and ETFs.

Not all bonds are created equal. Government bonds are pretty low yield and usually sit around 1 – 3%, and their yield and price all vary according to the interest rates set by the Federal Reserve. If Trump gets his wish and the Fed lowers interest rates even further, then you can believe that you’ll earn even less with bonds over the long-term, and it may be harder to sell them should you desire to down the road.

Corporate bonds, on the other hand, have higher yields, but are a lot riskier these days. Experts are advising against stocking up on this type of bond as corporations have the highest levels of debt in history. This makes a default or a bankruptcy on their obligations a serious consequence you will want to plan for ahead of time.

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How Do Bonds Hold Up Over Time vs. Precious Metals

 
Ultimately, you can just sideline your cash if the stock market doesn’t appear to be on an upswing. Bull markets don’t last forever, and neither will the current one. If anything, a triple-top appears to be coming in on the Dow Jones, which is often a sign that the market will reverse course and enter a new trend.

But don’t think that you only have to have bonds or stocks, or just cash for that matter. Inflation is not likely to ever go down or be accurately reported (the official inflation does not match the avg price of a car year over year along with other indicators like rent and food), and if you lock your money into bonds, you can expect to have less purchasing power once your bond sells and you collect your money back, even with interest.

This is why gold and silver, historically undervalued at the present moment, hold such promise for all investors and retirees. Precious metals tend to do very well during economic downturns and are a good hedge against a quickly inflating currency, loss of reserve currency status for the US dollar, as well as a store of value and safe haven while the market is falling.

How to Protect Your IRA or 401k from a Market Correction with Gold

 
A Gold IRA:

*Can protect you from the devaluation of the dollar due to un-payable US national debt
*Helps you make money even as stock markets decline, drop in price, or even crash
*Provides all the same tax benefits of a traditional IRA or 401k

Click here to receive a free Gold IRA investment kit or Call 1 (844) 912-1706

Rollover IRA and 401k to Gold

Return to thebestgoldirarolloverguide.net