BFI Group Blog

Stay informed about the news at BFI and in a world of rapid change

BFI Bullion
November 1, 2018

Gold Snapping Out of Its Sleeping Beauty Mode

When the stock market corrected recently, on the back of rising yields and lackluster global economic data, gold (and silver too!) finally snapped out of its mode of inertia. For a measure of how much last week’s surge in gold prices may have caught many in the market by surprise, consider that hedge funds had just made their biggest-ever bearish wager on the metal days before.

As described in detail in Dirk Steinhoff’s article “,THE BUYING OPPORTUNITY OF THE DECADE”, we are all witnessing one of those investment moments, one of those bear market bottoms that even though they’re plain for all to see, most investors will still miss out on.

After several years of downward or sideways movement of gold and silver prices, the next few months could make history. In the rear-view mirror of our financial journey, those who recognize AND ACT on this bear market bottom, those brave and patient enough to go against the crowd, will be the winners in the coming years.

As most other investors lose big in stock markets, bonds and all kinds of paper securities, those of us owning physical gold and silver will be reaping the benefits of a sound investment, made at the right time.

Gold prices headed for their biggest gain since March 2017 last week. After a slump in global equity markets and data showing slower-than-expected U.S. inflation, demand for gold as a store of value shot up.

Bullion gold, which touched a six-week-high $1,218.60 an ounce last Thursday, has traded near $1,200 since late August as traders weighed geopolitical risks that could boost the metal’s allure as a haven against rising interest rates that dampen its appeal.

Speculators boosted their net-short position in bullion futures and options to the highest level since at least 2006 in the week that ended on Tuesday, according to government data released three days later. By Thursday, gold was extending its rally, climbing to levels unseen since 2016, as a rout in global stock markets and weaker-than-expected U.S. inflation raised bets that the Federal Reserve will slow the pace of interest-rate increases.

Hopefully, our subscribers won’t remain in the “Sleeping Beauty” mode either… If you haven’t stocked up on gold and silver yet, now is the time to act. ,Call us for advice and guidance.

,>> Read More

Download PDF Blog Post
Download • 288KB