Investors Moving to “Larger” Holdings in Gold

Investors Moving to “Larger” Holdings in Gold

Investors Moving to “Larger” Holdings in Gold


Gold lost 15% of its value since last Summer as the USD gained on the outlook for higher interest rates and Republican Donald Trump won the presidency on a bro-business platform.

While most investors love stocks over the precious Yellow metal, it may pay to be contrarian as Trump’s campaign promises  become reality

The Trump Rally has lifted the S&P 500 about 6% to record highs as stock market Bulls point to the possibility of tax cuts, billion-dollar infrastructure spending and scraping of anti-business government regulation.

US economy faces daunting obstacles to growth because of trillion-dollar public debts that will sap productivity as the Fed raises borrowing costs.

Note that increase of 100 basis points in rates boosts debt service by $470-B annually, that is 2.5% of GDP, money that cannot be spent growing the economy because it is paid to holders of US debt.

  • Feb 2017 Gold ended Friday’s session down 10.40 (-0.9%) to 1173.20/oz
  • Mar 2017 Silver closed Friday’s session 0.13 lower (-0.8%) to 16.51/oz

Savvy investors say the odds that Gold will shine brighter this year are growing, and that the commodity may be the hero investment of Y 2017.  One said, “I have moved to a large holding in Gold.”

HeffX-LTN Analysis for GLD: Overall Short Intermediate Long
Bearish (-0.31) Bearish (-0.26) Neutral (-0.21) Bearish (-0.46)
HeffX-LTN Analysis for SLV: Overall Short Intermediate Long
Bearish (-0.32) Neutral (-0.10) Very Bearish (-0.56) Bearish (-0.29)

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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