5 Things to Know As Gold Bull Run Unfolds

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Have you ever wondered if gold is a good investment? This is for you.

1. Gold is proving its worth as a safe-haven asset. 

2019 1 oz. gold american eagle obverse

In today’s world of stepped-up U.S.-China trade tensions, market-moving Tweets, stock market volatility and economic uncertainty, gold is acting exactly as it should – as a safe-haven investment. Investors around the globe are investing in gold for its ability to diversify and protect portfolio assets.

2. Gold has entered a new bull phase and it’s just getting started.

Gold hit a 6-year high this week and is up over 17% year-to-date (YTD). Gold has chalked up more gains than the S&P 500 YTD.

UBS, a global Swiss bank, recently said it was “staying long gold” with a prediction that gold could hit $1,600 an ounce within three months.

Major Wall Street firms are now citing the potential for gold to climb as high as $2,000 an ounce over the next year. One measure of investor gold demand is gold-backed ETF holdings. In July, gold backed ETF’s added 52 tonnes. The global rush to gold is just getting started.

3. Gold is scoring new all-time highs in other currencies.

Gold hasn’t challenged its all-time high priced in U.S. dollars above $1,900 an ounce. Yet.

Gold has notched new all-time highs in many currencies including the Indian rupee, Australian and Canadian dollar, British pound and Japanese yen.

4. September is a bad month for the stock market.

Seasonally and historically, since 1950 September is the worst performing month of the year for the Dow Jones Industrial Average and the S&P 500, according to Stock Trader’s Almanac. That suggests that stocks are vulnerable to another downswing next month, which could send gold even higher. If you’ve been considering increasing your allocation to tangible assets like gold, current levels still provide an attractive long-term buying opportunity and spot gold could be more expensive next month.

5. American Eagle gold coins are in high demand.

In July, United States Mint bullion sales saw a 10% increase over June of American Eagle gold coins. This coin is one of the most widely traded gold bullion coins around the globe. Investors appreciate the safety and security of American gold eagle coins which provide incredible liquidity (can be sold at a moment’s notice) as well as the opportunity for price appreciation.

Do you have questions about gold investments or how current market conditions could impact your portfolio? Call Blanchard today at 1-800-880-4653 for a confidential and personalized portfolio review and recommendations.

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