- How To Invest In Gold Online

Over the last few days, we’ve all witnessed gold breaking over the $1600 mark as stocks suffer significant losses. There is a lot of nervousness in the market which is one of the reasons why gold breaks over the 1600 mark, and people are putting gold and silver into their portfolios.

Why Gold Breaks Over the 1600 Mark

In the meantime, the US dollar is actually strengthening against both the Euro and the Japanese Yen. Investors see the dollar as a safe haven trade, as people move into the dollar and into the US equity market. In this market condition, there is a headwind for precious metals, especially gold.

The Coronavirus Threatens the Global Economy

The coronavirus has caused an unprecedented economic slowdown with investors rushing into gold to safeguard their investments. The market did not take seriously the effects of the coronavirus early and only recently came to terms with the massive threat it poses to the global economy.

A few days ago the Chinese finally admitted that their GDP is going to get hammered in the first quarter. The market now is taking this seriously. If this continues for very much longer it will have a devastating impact on global growth which will put all the central banks including the FED on full monetary easing policy and that reality is starting potentially to sink in.

More Reasons for the Gold Rally

In addition, the coronavirus is just the tip of the iceberg. There are many reasons for the price of gold to hit the roof apart from the Wuhan virus.

The overvalued stock market will have to correct itself sooner or later
The upcoming recession that is been held up by the FED
The war on cash with the Europeans continuing their negative interest rates policy
The low bond yields
The global debt bubble
Middle East tensions in Syria escalade

Conclusion

The metals, gold, and silver, continue to charge higher with parabolic moves and heavy volume. In my opinion, it will be healthy for gold to see a pullback, to allow some profit-taking if this is going to be a bull market. All the signs are there for the rally to continue, we are bullish on gold and silver.

There is no reason to sell gold, as the outlook for gold prices remains positive. All indicators are bullish on gold.

There is no end to the trade war between China and the United States.
The bond yields will continue to fall.
Brexit uncertainty still rising as the Tories lose parliament support.
The economic outlook is getting from bad to worse.
The global debt bubble.
The covid-19 effects on the global economy

Gold Consolidates

No reason to sell gold — https://howtoinvestingoldonline.com/

In my mind, gold will consolidate for a while as the formal withdrawal of the Hong Kong extradition bill, will remove fear from the global markets. Also, in Britain a bill is about to pass that will forbid a no-deal Brexit. These two events will remove fear from money managers around the world, as they will see fewer risks coming out of Hong Kong and Britain.

As a result, gold will consolidate for a while until the various central bank meetings take place in September. Central banks will continue their monetary policy as it is, we all know that. In fact, Christine Lagarde, the next president of the European Central Bank, already announced the continuation of Mario Draghi’s policies regarding quantitative easing and negative interest rates.

Silver Soars

Silver soars like there is no tomorrow, surpassing each of our target prices of $18,00 and then $19,00. On top of that, the silver-to-gold ratio has fallen from 90-1 to 79-1 and we expect the ratio to continue to narrow, while gold and silver continue rallying. Remember, it is widely accepted that the gold-to-silver ratio should be at around 60-1.

Recession is Coming

According to Frank Giustra, the chairman of Leagold, we are heading for a recession worse than the one we had back in 2008 and I agree with him.

Global debt has actually doubled since the 2008 crisis. In fact, global debt value was fueled by “cheap” money such as quantitative easing and low-interest rates.

The overpriced and overvalued Stock Market has also been fueled by massive amounts of easy money. The Stock Market has been moving up for an unusually long time and as a result, people have become accustomed to that type of behavior. They think this will keep going on forever, which is not the case and in the end, they will be hurting themselves. A thirty percent fall in the markets will be normal to see.

No Reason to Sell Gold

We are long overdue for a recession, as this was the longest economic recovery ever. If we take a better look at the recovery we’ve seen, it was a fragile anemic recovery. The growth we’ve seen all these years was nothing more than 2% or 2,5% annual growth, compared to 5% and 7% healthy recoveries in the past.

If the bad scenario takes place, we could see massive unemployment, large corporation collapse, currency war, hyperinflation, and geopolitical uncertainty.

Conclusion

Although, a serious investor should always have some insurance in his portfolio, and the only insurance is gold, nowadays it will be reckless for an investor not to own gold. As the bad news continues coming in, many investors increase the percentage of gold in their investments. The best gold investment for me is to possess physical gold.

Silver too can be handy, as it is undervalued-underpriced and it also has the gold-to-silver ratio distance to cover. Furthermore, silver tends to follow gold as it rises and as it falls. A physical ownership of silver is always a better investment.

There is absolutely no reason to sell gold whatsoever.