Posts by Adam Baratta

December 19, 2017 |

Another Rate Hike and another Bounce Higher

Gold on the rise Crop

This past week, the Federal Reserve raised interest rates by 25 basis points in a move that was widely expected. The rate hike announcement did not have a significant impact on markets, and stocks actually moved higher despite it. The central bank also stuck to its previous forecast of another three rate hikes in 2018. Investors may not be buying it, however. Although the economy has shown major improvement in many areas, the sustainability of such improvements may be questionable. Then there is also the... Continue Reading

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December 13, 2017 |

Be Ready for the Rebound

on the way

Gold has been on its heels in recent trade, as a number of factors have been working against the metal. Higher stocks, the possibility of a tax deal being made and a lack of any fresh bullish news have all likely played a role in the metal’s lackluster performance. The upcoming Fed meeting is also possibly taking a bite out of the market as well, as investors get ready for another 25 basis point hike from the central bank. A rate hike seems like a... Continue Reading

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December 7, 2017 |

Isn’t the Whole Idea to Buy Low and Sell High?

Gold Coin Plant

When it comes to the gold market, perhaps the old saying should be changed to “buy low and sell high-if ever.” That is likely the mentality behind gold investors at this point, as the yellow metal remains stuck in a trading range. The gold market has some issues working against it currently. Higher stocks, a stronger economy and overall robust appetite for risk are all playing a role in the market’s current lack of upside follow through. In the absence of any fresh, bullish catalyst,... Continue Reading

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December 1, 2017 |

Don’t Be Fooled

It seems that everywhere you look these days, people are talking about how well the economy is doing. In fact, recent GDP data does point to further economic strength, and the Fed has even stated that it still plans on moving forward with additional rate hikes. Stocks continue to reach fresh all-time highs, and investor appetite for risk remains quite robust. There comes a time in every bull market, however, when investor complacency reaches levels that warrant a significant correction or even reversal in the... Continue Reading

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November 27, 2017 |

Watch Rates for Higher Gold

Rally

When it comes to the notion of higher interest rates, most investors automatically, and mistakenly, assume that higher rates equates to lower gold prices. Given the past decade of ultra-low rates and QE, however, such a correlation could actually have the direct, opposite effect of what many assume. The benchmark 10 year note could possibly hold the keys to substantially higher gold prices in the months and years ahead. That’s right: A higher 10 year yield could actually boost gold rather than drag it down.... Continue Reading

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November 24, 2017 |

The Bubble is Getting Bigger

According to Investopedia, a bubble is “an economic cycle characterized by rapid escalation of asset prices followed by a contraction. It is created by a surge in asset prices unwarranted by the fundamentals of the asset and driven by exuberant market behavior. When no more investors are willing to buy at the elevated price, a massive selloff occurs, causing the bubble to deflate.” According to Wikipedia, a bubble is defined as “trade in an asset at a price or price range that strongly exceeds the... Continue Reading

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November 15, 2017 |

Put That Old 401k to Use

gold-egg-icon

The amount of people that leave an employer and simply let their employer sponsored 401k plan sit and rot is truly astounding. Once an old 401k plans begins to sit, it becomes susceptible to erosion from annual fees and a lack of diversification. Not to mention the fact that there is no longer funds flowing into the account on a regular basis. Leaving an old 401k to simply sit is a colossal waste of time, capital and resources. Not only may the account bleed money... Continue Reading

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November 3, 2017 |

Gold to Move Higher on Lack of Exploration

breakout is brewing

Gold has a number of reasons to potentially move higher from current levels. A weaker dollar, low rates, government debt and the potential for a major stock market collapse could all keep the metal moving higher in the coming months and years. There is another major bullish factor that could also be a major driver of gold prices. A lack of exploration could put a major crimp in supplies, fueling a price rise. In a recent article on Kitco.com, Lamgold President and CEO Stephen Letwin... Continue Reading

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October 30, 2017 |

3 Reasons to Add Gold to Your Portfolio Right Now

Gold Stone

When many investors think of investments in gold, they think of higher gold prices. Investors have been thoroughly trained to think of investments in terms of if I buy XXX at $10 and sell it later at $20, I have made a 100% return. Now, let’s be clear. There is nothing wrong with buying low and selling high. And who wouldn’t want to make a profit on an investment. Gold, however, offers numerous intangible benefits in addition to the possibility of higher prices. Many of... Continue Reading

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October 24, 2017 |

Will Tax Cuts Weigh on Gold?

FED

The Senate has voted and passed a budget plan that could potentially pave the way for significant U.S. tax cuts. The House plans to take up the budget blueprint (approved by the Senate 51-49) as early as next week. A quick passage through the House could enable a tax cut plan to move forward expeditiously. The initial reaction being seen on Friday is dollar strength and gold weakness. That’s all it is, however, a knee-jerk reaction. Whether or not tax cuts might weigh on gold... Continue Reading

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