While a myriad of forces pushed the gold price around in 2018, it basically ended the year flat. This report recaps the year in gold, shows how it compared to other asset classes in both short and long timeframes, and explores the factors to watch in 2019.
Volatility in the global equities markets continued as weaker-than-expected economic data and the chaos surrounding Brexit fanned fears that the globally connected economy is headed for a slowdown.
I’ve been a holder of gold since the 1970’s. At that time, I was purchasing gold and silver for business reasons and found that, as the price was steadily increasing, I would be wise to buy more than I needed immediately, as I would most certainly profit from it in the near future.
Stocks continued to be extraordinarily volatile this week despite what appeared to be a relatively successful meeting between US President Trump and Chinese President Xi Jinping at the G20 conference in Buenos Aires over the weekend. The trading week was shortened in the U.S. due to a national day of mourning that was declared to honor former US President George H.W. Bush who passed away on November 30.
Liberal economist Paul Krugman proclaimed earlier this year that “gold is dead.” An Economist article stated that “there is no point in investing in gold, any financial investment is better.” And Warren Buffett, one of the most successful investors of modern times, has never liked gold.
It was a short trading week in the U.S. due to the Thanksgiving holiday. U.S. markets were closed on Thursday, and opened for a shortened day on Friday as retailers geared up for a hoped-for rush of shoppers to kick off the holiday shopping season.
Let’s say that you and several other shareholders owned a large building and you had reason to believe that its structure were faulty. Possibly you’d not maintained the building properly and you now realized that, if it were to fall down, you’d be liable for any damage caused.
Trade and tariff impacts combined with ongoing tensions in the Middle East to continue rattling markets this week. Technology stocks in particular struggled as earnings season begins to wind down. Several big tech names, like Apple, and Alphabet (formerly Google) either missed on their earnings expectations or announced things during their conference calls that spooked investors.
Whenever a movie has been a huge hit, the film industry tries to follow it up by doing a sequel. The sequel is almost invariably far more costly, as there’s the anticipation by those who create it that it will be an even bigger blockbuster than the original.
The release of the Non-Farm Payrolls report for September was eagerly awaited this week after the Federal Reserve’s latest rate hike last week. Italy’s continued budgetary problems triggered multiple rounds of uncertainty for markets this week in addition to the ongoing global trade frictions.