{"id":1079819,"date":"2018-10-09T18:10:00","date_gmt":"2018-10-09T18:10:00","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=1079819"},"modified":"2018-10-09T18:10:00","modified_gmt":"2018-10-09T18:10:00","slug":"5-charts-that-show-why-gold-belongs-in-your-portfolio-now-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1079819","title":{"rendered":"5 Charts That Show Why Gold Belongs in Your Portfolio Now"},"content":{"rendered":"
\"central
click to enlarge<\/small><\/a><\/p>\n

2. Banks on a Gold-Buying Spree<\/h3>\n

While I’m on this subject, central banks have been net purchasers of gold since 2010, with China, Russia, Turkey and India responsible for much of the activity. Just this week, I shared with you the news that <\/a><\/div>\n<\/p>\n

The annual \u201cIn Gold We Trust\u201d report by Liechtenstein-based investment firm Incrementum is a must-read account of the gold market, and its just-released chartbook for the 2018 edition<\/a> is no exception.<\/p>\n

The strengthening U.S. dollar has lately dented the price of gold, and rising interest rates are making some yield-bearing financial assets more attractive as a safe haven. But as Incrementum shows, there are many risks right now that favor owning gold in your portfolio.<\/p>\n

Below I’ve selected five of the most compelling charts that highlight why I think you need gold in your portfolio now.<\/p>\n

1. The End of Easy Money<\/h3>\n

To offset the effects of the global financial crisis a decade ago, central banks increased liquidity by slashing interest rates and buying trillions of dollars’ worth of government securities. Now, however, it looks as though banks are ready to start tightening, and no one is really quite sure what the consequences will be. The Federal Reserve was the first, in late 2015, to begin hiking rates, and it’s been steadily shrinking its balance sheet for about a year now. Other banks are set to follow suit. According to Incrementum, the tide will turn sometime next year, with global liquidity finally set to turn negative. In the past, recessions and bear markets were preceded by central bank tightening cycles, so it might be a good idea to consider adding gold and gold stocks,<\/a> which have historically done well in times of economic and financial turmoil. <\/p>\n

\n

2. Banks on a Gold-Buying Spree<\/h3>\n

While I’m on this subject, central banks have been net purchasers of gold since 2010, with China, Russia, Turkey and India responsible for much of the activity. Just this week, I shared with you the news that Poland added as much as nine metric tons<\/a> to its reserves this past summer. If gold is such a \u201cbarbarous relic,\u201d why are they doing this? As Incrementum writes, \u201cThe increase in gold reserves should be seen as strong evidence of growing distrust in the dominance of the U.S. dollar and the global monetary system associated with it.\u201d Having a 10 percent weighting in gold and gold stocks<\/a> could likewise help you diversify away from fiat currencies and monetary policy.<\/p>\n

\"change
click to enlarge<\/small><\/a><\/p>\n

3. Too Much Debt<\/h3>\n

Everywhere you look, debt is rising to historic highs, whether it’s emerging market debt,<\/a> student loan debt<\/a> or U.S. government debt. Meanwhile, higher rates are making it more expensive to service all this debt. As you can see below, interest payments will hit a record $500 billion this year. It’s forecast that the federal deficit will not only reach but exceed $1 trillion in 2019. How will this end? Earlier this year, I called this risk the \u201cglobal ticking debt bomb,\u201d<\/a> and I still believe it’s one of the most compelling reasons to maintain some exposure to gold. <\/p>\n

\"US
click to enlarge<\/small><\/a><\/p>\n

4. An Exceptional Store of Value<\/h3>\n

In U.S. dollar-denominated terms, the price of gold is down right now. But in Turkey,<\/a> Venezuela,<\/a> Argentina and other countries whose currencies have weakened substantially in recent months, the precious metal is soaring. This alone should be reason enough to have part of your wealth stored in gold. Need further proof? According to a recent Bloomberg<\/a> article, the cost of a black-market passport in Venezuela right now is around $2,000. That’s more than 125,000 bolivars, or 68 times the monthly minimum wage. A Venezuelan family that had the prudence to own gold would be in a much better position today to survive or escape President Nicolas Maduro’s corrupt regime. In extraordinary circumstances such as this, the yellow metal can literally help save your life.<\/p>\n

\"gold
click to enlarge<\/small><\/a><\/p>\n

5. A Sterling Time to Buy Gold?<\/h3>\n

Finally, a word about timing. According to Incrementum, some of the best gold buying opportunities have been when the gold\/silver ratio crossed above 80\u2014that is, when it took 80 or more ounces of silver to buy one ounce of gold. If you look at the chart below, you’ll see that such instances occurred in 2003, 2009 and late 2015\/early 2016\u2014all ideal times to accumulate. We see a similar buying opportunity today, with the gold\/silver ratio at a high of 83 as of October 8. What’s more, gold stocks are the cheapest they’ve been in more than 20 years<\/a> relative to the S&P 500 Index.<\/p>\n

\"highs
click to enlarge<\/small><\/a><\/p>\n

Curious to learn more? Download my popular whitepaper on gold’s love trade by clicking here!<\/a><\/em><\/strong><\/p>\n

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. By clicking the link(s) above, you will be directed to a third-party website(s). U.S. Global Investors does not endorse all information supplied by this\/these website(s) and is not responsible for its\/their content.<\/p>\n

The S&P 500 Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.<\/p>\n

Diversification does not protect an investor from market risks and does not assure a profit.<\/p>\n

…read more<\/a> <\/p>\n

From:: Frank Talk<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

click to enlarge 2. Banks on a Gold-Buying Spree While I’m on this subject, central banks have been net purchasers of gold since 2010, with China, Russia, Turkey and India responsible for much of the activity. Just this week, I shared with you the news that The annual \u201cIn Gold We Trust\u201d report by Liechtenstein-based […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[365],"tags":[],"class_list":["post-1079819","post","type-post","status-publish","format-standard","hentry","category-franktalk"],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1079819","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1079819"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1079819\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1079819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1079819"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1079819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}