August 2019 - Week 4 Edition
Precious Metals Having Their Best Year Since 2010
Near the end of August, gold is up 20% for 2019 so far – its best year (by far) since 2010 – and we are about to enter gold’s best time of the year – the holiday season in various cultures, when gold jewelry gift giving is popular. Going back to 1975, when gold trading was legal in America, the entire growth in gold’s price came during the six months from September 1 through February 28. Gold averaged 1% per month price gains from September through February in the years 1975-2018, compared to zero net gains in the other six months, February to August, due primarily to jewelry fabrication for seasonal holidays.
Gold and silver’s biggest price increases came after President Trump started threatening tariff increases on May 5. The stock market has fallen since then while precious metals have risen 20% during a nearly four-month escalation of the trade war between China over the late Spring and summer months of 2019:
Silver has now outpaced gold’s growth over the last four months and has nearly matched gold for the full year – 19% for silver vs. 20% for gold – with the two major stock indexes falling 2% since early May.
When gold rises significantly over an extended period of time, we typically see many more new and old customers respond to industry advertisements. Over time this often results in more customers entering the rare coin market and rising prices!
Gold Reaches Another 6-Year High
Gold reached another 6-year high of $1,545 this week, and silver reached a near three-year-high of $18.40 – well beyond our year-end goal of $18, which we first posted just last month! The latest rise in gold is due mostly to President Trump’s escalation of the Trade War last Friday with a Tweet emanating from the G7 meeting in France in which he raised tariffs on Chinese exports to America and “ordered” American businesses “to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA” adding that “We don’t need China and, frankly, would be far better off without them.” That sent the stock market down and gold up. Please call us today to get our latest input on these exciting times and how they may benefit you!
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