Gold is about to hit $2,000.
And, at this rate – with inflation, fears of recession, and the potential for escalating conflict – gold could see $2,500, even $3,000 gold before long.
No joke.
In fact, according to Jeff Currie, Goldman Sachs global head of commodities research, as quoted by Bloomberg, “It’s a perfect storm for gold right now.”
“There’s three legs to this story. One, you have strong investor demand for gold over concerns about inflation, recessions, and downturn in places like Europe. The second leg is central bank buying … and with the situation in Russia, they’re likely to accumulate dollars in reserves they can’t do anything with. What can they do with it? Buy gold.”
We also have to consider that Russia isn’t backing off from Ukraine.
Instead, they’re only intensifying the situation, flying nuclear bombers near the border of Ukraine. Even Zelensky is warning of a Russian nuclear attack and is calling for a stockpile of radiation pills. While there’s hope Russia won’t go nuclear, your guess is as good as mine.
Also, should Russia go nuclear, the global response could get ugly – and fast.
Markets
- The Dow is down 45 points to 34,311
- The S&P 500 is down just over 12 points to 4,375.25
- The NASDAQ is down 47 to 13,846.75
- Gold prices are up $7.82 to $1,995.86
- Bitcoin is down 2.62% to $39,281.45
- Oil prices are up about a quarter to $107.20
- The VIX is up 1.18 to 23.88
Trading Tips
Never invest without a stop loss.
It can be costly.
It’s just an insurance policy in case your stock pulls back too much. It also protects you from losing too much money. Some traders use a -25% stop loss for example. If the stock falls 25% from your buy-in price, the stop is triggered and the trade is over.
Investors can also use a trailing stop loss.
What’s nice about this one is that it removes all emotion from the trade. If your stop is hit, you’re out automatically. There’s no second-guessing. If your stock pushes higher, the trailing stop resets higher, too, never triggering until it plummets.
With a trailing stop, if my trade drops by let’s say 15%, I’m automatically stopped out, no questions asked. Now, if the stock continues to move higher, my stop is never triggered. It allows unlimited capital appreciation.
As long as a stock keeps going up, the trailing stop will never get triggered.
Such a stop keeps us from selling our stocks at the wrong time while in a solid uptrend, while preventing losses from wiping out your portfolio. Basically, it forces a stock to be sold. No emotions. No fretting. It’s all automatic.
This strategy keeps you in winners and gets you out of losers. And over time will go a long way to making you a much wealthier investor.