Gold Strategy

April 1, 2019

Investors continue to find the Equity markets attractive even with no end in sight to the China and Brexit negotiations.

With investors feeling confident that their investments are in good shape, safe haven investments like Gold and Bonds can be overlooked at this time.

But let us not forget that in 2018 market sentiment flipflopped back and forth daily between “Risk-On” and “Risk-Off” ideology. Every day we continue to see risk in the headlines, whether geopolitical or economic, anything can happen in a moment that will turn markets around. Not to mention the continued ongoing political rumor mill here in the States.

These headlines can take a toll on a trader and investors’ emotions, but can also provide opportunities.

That’s where a Dollar Gold cost averaging strategy can make a lot of sense. When the price of Gold declines, many smart Gold investors see it as a buying opportunity to create a truly balanced portfolio.

At the time of this report, Equity markets are called up over two hundred points. So, when the price of Gold is most ignored by investors that might be the best time to, so to speak, “put your toe in the water” and put in place your dollar cost averaging strategy.

Palladium

Palladium prices have experienced a much-needed correction in the past week and may be vulnerable to further declines in the short term. Despite this continued tightness in supply the market is likely to see prices test higher across the medium to longer term.

To back up that philosophy, Johnson Matthey estimates that the Palladium supply deficit could reach one million ounces in 2019. So maybe there still significant room to the upside in the price.

Today’s Palladium EFP is quoted by some dealers at Minus 40 minus 20. If the EFP stays in negative territory higher prices are always a possibility.

Have a wonderful Monday.