There’s just something awesome about gold, isn’t there?
From its shine, to its weight in your hand, to the value of it, there’s plenty to love about the world’s favorite precious metal.
So why has it taken a nosedive this week? On top of discussing why, let’s also dig into the possibility of now being gold’s tipping, and whether you want to be investing in it or dumping it fast…
The metal itself has dropped from over $1,310 per ounce to below $1,270 per ounce…in a matter of two days!
But why?
Sure, the market dipped on Tuesday, but not nearly enough to be the cause of gold’s fall. And gold doesn’t have as close a correlation to the overall market as any regular stock would.
(That’s part of its charm, actually. And the same can be said for most commodities)
The other answer I heard as to why gold fell is that the news for Deutsche Bank isn’t as gigantic a catastrophe as people thought. Think about that…because it isn’t a CATASTROPHE, the world is now in perfect harmony.
And perfect harmony is what would make gold dip. You see, this precious metal has become a hedge against central banks (and the disaster they’ve created).
Investors flock to gold when they are bearish on the market, economies, etc.
So why did gold really dip?
It’s an overreaction by investors. Short covering. Some of the smart money on the market to fall based on Deutsche Bank or anything else has to be reeled in and closed out.
But the more important question is: where’s gold really headed?
Let’s see…a bet on gold is a bet that something will go wrong. Here’s just a few things that could go/will go/are already going wrong:
- Deutsche bank is in horrible condition, which just adds to the heavy weight of poorly-run Italian banks. That’s even more bad news for an already-beaten down Europe.
- The stock market itself is overdue for a correction, and if you look at the global index, we’ve been in nothing more than a bear rally over the past couple of months.
- Volatility from the presidential election looks to be on the cards one way or another. And if Trump wins in what now looks like a “shocker” type of vote, we could see the market take a beating 10 times worse than it did after Brexit!
- The possibility of war blooming from seeds being planted in North Korea, China, Russia, and Iran is real. If you know where to look, the signs are there to see (a story for another day, I suppose).
And that’s just a few of many major issues!
I’ve been bullish on gold for quite some time, and have made good money on it to (as have subscribers to Midas Wave Alert). And I don’t see any reason to bail on it now just because of an overreaction from investors.
The long-term outlook is still very bright for gold in my eyes.
