Investors Moving to “Larger” Holdings in Gold
$GLS, $SLV
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.
Investors Moving to “Larger” Holdings in Gold added by Paul Ebeling on
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Paul Ebeling
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