Gold is a safe haven in uncertain times. Investing in gold will protect your portfolio. In the future, the price of gold maybe two or three times.
Investing In Gold:
Some technical analysts predict the collapse of the US dollar, the biggest rise in gold value to see if that happens. Dr. Jim Willie predicts the US dollar may lose its world’s global reserve currency status. If happens Gold will start its dream rally in history.
Trillionaire Rothschild accumulating gold for last two years now. Jacob Rothschild announced that they are reducing stock market and currency exposure and increasing their gold holdings and warns that the world is now in “uncharted waters” and that the consequences are “impossible” to predict.
Buy Some Gold It May Double or Triple in Future. I recommended my readers to buy gold around $1295 now it is around $1330. More rally to come start accumulating gold.
Gold Chart Analysis:
After hitting the all-time high at $1911 in 2011 September Gold starts to correct. The correction lasted for almost 6 years. Now the Gold Futures chart broke the falling trendline resistance around $1250. Which means it is ready for a historic rally. My target for Gold long could be $7000 around 2020. So investing in gold will help you to grow your wealth.
Gold At 1 Year High:
Central banks know more information than us.They accumulating the Gold. Gold on yearly basis gained around 0.58% that is gold trading mildly above the previous years close. If it stays above the previous year close then the Gold has a good chance of closing the year 10% higher compared to last year.
I have posted Some economical charts below which show gold rally is here.
Gold To Monetary Base Ratio:
The monetary base roughly matches the size of the Federal Reserve balance sheet, which indicates the level of new money creation required to prevent debt deflation. Previous gold bull markets ended when this ratio crossed over the 4.8 level. And bear markets ended when the ratio is below 0.5.
US Dollar and Gold Correlation:
US Dollar and the Gold have negative correlation. If US Dollar rises Gold falls and vice versa. The correlation chart is for last 10-year chart. As of now, US Dollar corrects every month and Gold is ready for a breakout. If the breakout above $1371 for gold then no one can stop gold.
Chart Data Courtesy: Macrotrends.net
US Dollar Technical Chart:
The US Dollar Index is headed for lower from start of the year 2018. When Saudi Arabia agreed to accept only US Dollar as payment for oil in 1970’s US Dollar becomes world’s reserve currency. But now the Scenario is changing rapidly from US Dollar to China Yuan. Now Russia is accepting Yuan in payment for oil.
The US Dollar once is backed by Gold and Silver, but “now is backed by nothing”.
Venezuela announced that it will no longer accept payment in US Dollar for its oil.
And China plans to introduce Gold-Backed Oil benchmark denominated in yuan and convertible into gold.
Investing in Gold To Protect from Stock Market Crash:
The world Stock markets rallying for almost 8 years now. So, Some correction or deep share market crash may happen. If that happens to invest in gold will protect your portfolio. I am advising my clients to Trim their risk asset holdings(like stocks, currencies etc,) and advising to invest in hold for good returns.