The talking heads of the media are all running around looking at gold declaring it is over. The run had finally ended. The Wall Street Journal wrote, Gold tumbled after a surprise release of U.S. strategic crude oil reserves fed into investor expectations of lower inflation amid slower economic growth. Apparently, everyone feels better due to the release of less crude oil than the U.S. uses in three days so the worry is over. WSJ then followed up with, A strong dollar, which rallied against the euro as concerns about inflation eased, also pressured gold prices. Of course, now we can all sleep easy tonight, the Dollar is back as strong as ever! (Sarcasm: Dollar down 13% from last year)
Martin Sosnoff chairman and founder of Atalanta Sosnoff Capital wrote in Forbes, In the current stock market, I can’t find any excesses for gold to feed off. The market’s correction is painful but orderly, like a pop up behind home plate. Gold needs another Black Monday to surface but won’t get it. Gold has no use other than insurance when things like the Dollar & Stock Market crash. That is a bad thing because? We have been telling you that for months, metals are financial insurance when bad things happen to good portfolios.
I could go on to others but you get the point. Gold is cycling through the summer gearing up for the fall. Now during this current retraction is a great time to add or start a Tangible Asset Portfolio. Take the time to assess your position and make the call to buy as gold pulls back before the fall surge.