Gold Hits New Highs in All Major Currencies

The Worldwide Turn to Gold Continues!

If you are adding gold to your profit and protection portfolio, you are in good company!

The price of gold hit new highs in February in all the world’s major currencies, according to the World Gold Council, a London-based industry trade association.

The cross-currency performance is important to note, so that the bull market is not incorrectly attributed just to the US dollar market.  The dollar has been in decline for most of the year.

The WGC shares our repeated warning about the re-inflation in the pipeline now and the return of stagflation.  It finds that “there are several factors that could reinstate the thorny problem of higher inflation, especially at a time when deteriorating economic conditions may necessitate interest rates staying low. The US economy is likely in ‘stagflation’ and consumers appear to see it that way.” 

The WGC’s assessment of risk and reward in today’s gold price comes down heavily on the side of “reward.”

• The “Trump trade” – stronger dollar and US stocks – has taken a back seat amidst concerns about tariffs and hawkish foreign policies, conditions that will likely remain.
  
• As governments look to increase military spending, budgets deficits are likely to increase and credit ratings to fall.
  
• At the same time, despite inflationary pressures, markets expect a more dovish Fed, pricing in at least two full rate cuts by the end of the year.
  
• These factors combined are creating a particularly supportive environment for gold.

To learn more about the prospects for gold in our rapidly changing global environment, speak with a Republic Monetary Exchange gold and silver professional today.  He can help you create a portfolio designed to protect your family and your wealth.