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Donít Look Now, but Gold Just Finished Its Best Year Since 2011
Market Oracle ^ | 1-5-2017 | Money Metals

Posted on 01/05/2018 6:55:48 AM PST by blam

Metals investors may have missed it given the gloomy sentiment that plagued markets for much of 2017, but gold just finished its best year since 2011.

Perhaps in a year like the one just passed, 13% gains are simply not inspiring. U.S. stocks finished about 25% higher for the year, and crypto-currencies including Bitcoin left all other asset classes in the dust. Bitcoin gained roughly 1,400%.

Die hard gold bugs enter 2018 waiting for crypto-bugs and stock bulls to see the value of precious metals. Fortunately, precious metals have served reliably both as an inflation hedge and as a safe haven for most of recorded history. It looks less and less probable investors will get through another 12 months while ignoring both inflation and market risk simultaneously.

While other markets were finishing 2017 strong, the U.S. dollar ended the year with a whimper. The dollar fell 10%, its worst performance in more than a decade.

That weakness has yet to manifest itself as price inflation in consumer goods and services. It has instead shown up in asset prices.

Consumers have yet to feel their dollars getting weaker, which may explain much about why a traditional inflation hedge like gold isn’t getting a lot of attention. That may change in the months ahead, particularly if President Donald Trump can add his debt-financed infrastructure spending program to the tax cuts recently passed. Both initiatives represent fiscal stimulus for Main Street, and a shift from Wall Street oriented monetary policy including Quantitative Easing.

Fiscal stimulus programs should contribute to more weakness in the dollar, as deficits and borrowing increase. Yes, the Republican led Congress could insist on spending reductions elsewhere to compensate for tax reduction and infrastructure spending, but only the most naive would consider that a genuine likelihood.

(snip)

(Excerpt) Read more at marketoracle.co.uk ...


TOPICS: News/Current Events
KEYWORDS: commodities; gold; investing; preciousmetals

1 posted on 01/05/2018 6:55:48 AM PST by blam
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To: blam

Trump’s fault!™


2 posted on 01/05/2018 7:01:57 AM PST by null and void (this tagline abducted by aliens)
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To: null and void

Doctor Copper
"Often cited by market and commodity analysts, Dr. Copper is of course not a person, but an idea that copper prices have a strong ability to assess overall economic well-being."

3 posted on 01/05/2018 7:11:48 AM PST by blam
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To: blam
Hmmm... stocks up AND gold up at the same time?

Is that supposed to happen?

4 posted on 01/05/2018 7:30:59 AM PST by grobdriver (BUILD KATE'S WALL!)
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To: blam

Bitcoin is not crypto and it’s not currency. It has no value until converted into money. Potential value is not value.


5 posted on 01/05/2018 7:44:02 AM PST by I want the USA back (Lying Media: willing and eager allies of hate-America savages.)
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To: blam

So what? You want everybody to run out and buy gold?

Consider this: If you paid $28,000 for 20 ounces of gold in Jan. of 2011, today your 20 oz. would be worth $26,360.

If you had bought 151 shares of Amazon on the same day in 2011 for approx. $28,000, today your stock would be worth approx. $184,043.

Gold and other precious metals might be good for long term investment if you can wait 50-100 years for a decent ROI.


6 posted on 01/05/2018 8:22:52 AM PST by Colo9250 (A.G. Sessions should resign immediately for the good of the country.)
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To: blam

Still looks like a bargain


7 posted on 01/05/2018 8:37:47 AM PST by silverleaf (A man who kneels for the national anthem doesn't stand for much of anything)
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To: Colo9250

Gold is not an investment
Its a wealth preserver

Yes its for the long term

In 2011 you could choose from thousands of stocks and bonds and funds
It was certainly possible to choose wisely
And also possible to choose... poorly


8 posted on 01/05/2018 8:41:57 AM PST by silverleaf (A man who kneels for the national anthem doesn't stand for much of anything)
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To: blam

Gold prospers when there is fear in the market. I thought things were going well.


9 posted on 01/05/2018 9:18:19 AM PST by joesbucks
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To: null and void
Trump’s fault!™

That could be bad. Remember, gold prospers when there is fear in the market.

10 posted on 01/05/2018 9:19:12 AM PST by joesbucks
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To: Colo9250
"So what? You want everybody to run out and buy gold?"

I don't want you to do anything....I don't care what you do. I posted the article FYI.

That's all.

11 posted on 01/05/2018 10:14:14 AM PST by blam
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To: joesbucks
"Gold prospers when there is fear in the market. I thought things were going well."

My guess.

People are buying gold due to inflationary fears driven by an improving economy?

12 posted on 01/05/2018 10:17:26 AM PST by blam
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To: blam
US Services Sector Slumps As New Orders Crash Most Since Lehman
13 posted on 01/05/2018 10:49:12 AM PST by blam
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To: blam

for some reason, inflation has been downplayed and even denied in some instances.


14 posted on 01/05/2018 11:34:54 AM PST by joesbucks
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