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SELL GOLD OR BUY GOLD?

People all day have been asking the same question.  The phone has been ringing off the hook and I have customers coming in and asking, “Gabe, will gold go up or down?  My answer is, I do not know!  If I look at the trends, fundamentals and strength of a dollar it signals sell gold.  Gold has a lot of support in the $1230 to $1250 area it looks like. It made its March and May lows there earlier in the year. The relative strength index is below 30 – meaning it is coming into the “buy” zone. Gold stocks were up 5% yesterday while gold was stable – that is often a bullish divergence.  So does that mean buy gold?

The fundamental reason to own  gold is that it is a hedge against governments.  From a political perspective, 2016 has been the year that keeps on giving. I don’t see that changing. For all the volatility, you want a long term position.

The whole election  was a valuable lesson.  With Trump being elected everyone said gold will go up and stocks would go down.  The markets reacted quickly and then ran the opposite way.   The lesson is, once you get swayed, it is very easy to get carried away.

For my own personal portfolio I will still keep 5% in physical gold.  Short term signals tell me to sell my gold and then buy at a low, but now I know better.  I will keep 5% of my net worth in physical gold.  If I’m wrong it won’t be the first or the last time.  At West Town Jewelry & Loan we are here to sell you gold or buy your gold.  W are the top gold buyers in Chicago.  Please stop by for a free appraisal.  As far as Jewelry goes, gold is still very high.  I would wait to see what happens after this holiday weekend.  If Monday gold is going down, I would sell off.

 

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