It looks as though the all in commitment to support all assets and hopefully restart the U.S. economy will get another boost soon with the 484 billion USD deal being signed by the House of Representatives. More debt, more fuel to the fire when the pandemic calms and quite possibly a weaker USD and inflation due to many companies having to shut down and the disruption of supply chains.
Investors afraid of inflation will buy gold.
Investors afraid of a debasement of the USD, will buy gold.
Investors afraid of higher taxes may well buy gold for part of portfolio.
Investors afraid of deflation will buy gold.
The current geopolitical uncertainty may drive investors to buy gold.
Investors may substitute cash with gold to diversify, given that they yield about the same.
What to look at:
Here are the mining companies and the ETF that I monitor. Having a strong start to the day!
Please note the author of this owns several of the investments listed above in own portfolio!
If you are interested in looking at what to add to your portfolio or to trade, let us know and we will work with you to find the best fit.
To be fair here is an article posted on the Seeking alpha website in 2018 with five reasons not to buy gold.
Many valid points, but our view is based on what we think the market will do with gold and that there are enough investors that will allocate for the reasons listed above to drive the price higher.
|Ticker||Date Opened||Entry Price||Stop||Target Price||Current Price||% Change|
|Short DAX (GER30.I)||2020/04/23||10,450||10,525||10,150||10,360||+0.87%|
|Short Golden Ocean Group Ltd (GOGL:xosl)||2020/04/21||37.35||38.50||34.00||36.56||+2.20%|
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