“Time to Position in Gold Is Right Now”

(July 20, 2017 - by Mark O’Byrne)

Time to position in gold is right now” – James Rickards
– Fed has hit the ‘pause’ button; No more rate hikes for foreseeable future
– Fed’s theories “bear no relation to reality” and has “blundered by raising rates”
– Growth is weak, inflation is weak, retail sales and real incomes are weak
– Tight money, weak economy & stock bubble classic recipe for market crash
– Reduce allocations to stocks and reallocate to defensive assets such as gold
– “Gold will be the big winner when the Fed suddenly realizes its blunder”

Gold in USD – 10 Years

James Rickards, geopolitical and monetary analyst and best-selling author of  ‘Currency Wars’, ‘The Death of Money’ and ‘The New Case for Gold’ wrote yesterday in the Daily Reckoning that the “time to position in gold is right now.”

In an timely piece, Rickards points out how the Federal Reserve is behind the curve, has “theories that bear no relation to reality” and has “blundered by raising rates.” This is happening at a time when the U.S. economy and stock markets are very vulnerable.

Rickards warns that growth in the U.S. remains weak, as are inflation, retail sales and real incomes. Tighter money in a weak economy with a stock market bubble is a classic recipe for stock market crash.

After making his case succinctly Jim concludes:

“It’s time for investors to go into a defensive crouch by selling stocks and reallocating assets to cash, Treasury notes, gold.

In particular, gold will be the big winner when the Fed suddenly realizes its blunder and has to pivot quickly to ease, probably by late summer. The time to position in gold is right now.”