Wednesday, October 23, 2024

♟ 3 Reasons Why I'm Going All-in on Gold

Trade of the Day Logo

View in browser

Gold bars

"Interest rates, our debt, and the Middle East are all playing into Gold's 52-week highs."

Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance

Karim Rahemtulla

Gold is the gift that keeps on giving in 2024.

As of this week, the metal hit another new all-time high.

And when you look at our current fiscal situation – this shouldn't come as a surprise.

Gold Hits New Highs
 

As you'll see in the chart above, Gold is now worth more than $2,700 per ounce, and people are piling in at higher levels ahead of the election.

Here are 3 reasons why the gold bull run is still going.

This "AI parallel" stock is expected to grow 12,300% by 2030.

Just $5,000 could turn into a $620,000 windfall.

Full Details Here

1. Our fiscal situation is out of control

Our fiscal situation is pretty unbearable at the moment. Sure, the S&P 500 is consistently hitting all-time highs. People are out spending money. I'm in Las Vegas right now, and I noticed the airlines were packed on my way over here.

But the lack of visual evidence of a recession is only a short-term thing.

Over the last 30 years, our debt problem has steadily gotten worse and worse.

It doesn't matter which political party is in office, the debt has been rising. Plus, whoever wins the election is promising a ton more spending in 2025. So it doesn't look like this fiscal problem is going away anytime soon.

2. Interest rates aren't budging (despite rate cuts)

Last month, the Federal Reserve made its first rate cut in over 4 years.

The intent was to lower interest rates, but that hasn't happened.

In fact, the latest data from Freddie Mac shows the average 30-year mortgage rate has actually increased 6.4% over the last 4 weeks since the move.

This is due to the long-term rates showing our fiscal house is not in order. Meaning the government has to raise more and more money and that creates an imbalance.

You might think "a higher interest rate should equal lower gold prices." And that's true in a conventional sense.

But these aren't conventional times.

The truth is that if our country keeps issuing more debt and spends like crazy on the government side, interest rates can't come down.

The only way out of the current mess is to devalue the US dollar and the debt, both good for gold.

3. The Middle East/Ukraine situation

The situation in the Middle East and Ukraine also isn't helping. We're roughly one year removed from when tensions started to heighten in the Middle East. Almost three years ago, Russia launched its first military operation in Ukraine.

The cost of war to Israel's economy up is estimated to be around 12% of its GDP.

As for Russia/Ukraine, the U.S. doesn't trade with them as much, but the Ukraine/Russia war has affected U.S. businesses and caused gas prices to increase, which has also contributed to inflation.

There's also ever-lingering concern that Iran could escalate into a broader war in the Middle East.

This fear has already spilled bullish sentiment over to Gold's little brother – silver. As of today, Silver is within $35 an ounce, which it last hit back in 2012.

Logo

YOUR ACTION PLAN

For these key 3 reasons, I believe gold still has plenty of room to run going forward.

Right now we're positioned on 4 gold plays in Catalyst Cash-Outs, and I recently let readers in on a special gold company that also just hit 52-week highs.

In fact, this rare gold group has been seeing significant volume over the last few days, and it's a backdoor way you get in at roughly $20 an ounce vs. the current $2,500+ price.

Click here to unlock this rare gold pick.


INSIGHTS YOU MAY HAVE MISSED

Let's Go Long - Spotify

Why Sideways Action is Good for This Buying Signal

Expedia

Playing Acquisition Rumors

Kamala Harris

5 Sectors Set for Major Shifts if Harris Wins

Permian Basin

Why Permian Resources Might Be The Next Big Play

SIX AI Dividend Stocks to Buy Now (FREE INSIDE)

Marc Lichtenfeld - income expert and author of Get Rich with Dividends - is giving away his Free AI Income Playbook...

No credit card required!

Inside, you'll get the names and ticker symbols of his TOP SIX AI dividend stocks right now, including...

  • A special income play that pays double-digit yield
  • How to get into an AI income trust
  • And finally, Marc's No. 1 dividend stock for AI income.

Click here before the download link expires.

Instagram

Follow Us on Instagram!

FACEBOOK

YOUTUBE

 

No comments:

Post a Comment

PNP sues Sara for 'assault,' AFP revamps her security

The Quezon City Police District on Wednesday filed the first criminal complaint against Vice President Sara Duterte that stemmed from her ou...