A few weeks ago gold smashed through its former $1350 per ounce price barrier. It hasn’t reached price levels this high since 2012, and for weeks now it’s maintained these higher highs. In fact, not only did it break through the $1400 per ounce barrier, it busted through the ceiling so fast that it reached $1430 per ounce the next day.
At the time of this writing, the current gold price is $1422 per ounce and climbing. If you know anything about precious metals investing, rising gold prices typically doesn’t bode well for the US economy. As a matter of fact, the current price spike comes on the heels of Fed chairman Jerome Powell. He’s hinting that he’ll be cutting interest rates again in July. Obviously the market reacted in kind.
But the Fed chairman’s hints at lower interest rates are only one factor currently supporting gold today. The truth is quite clear. Economic turmoil and geopolitical strife exists all around the globe right now. These factors and others are reasons enough for gold to bust through former plateau levels.
And to top it all off, other issues also factor into the equation. They include the following reasons to consider gold IRA investing:
- The trade war between the US and China.
- Tensions and potential armed conflict between the US and Iran.
- Russia and OPEC planning to drive oil prices higher.
We’ve clearly reentered tumultuous financial times on a global scale. The economic turmoil doesn’t seem like it’s going to slow down anytime soon. Investing in a precious metals IRA is an effective way to protect your economic interests. It’s the perfect way to distance yourself from the tumbling US dollar.
Busting Through the $1350 per Ounce Gold Prices Barrier
As crazy as it sounds, gold has found itself in a very limited price pattern for the last seven years. Although it would break through this price barrier on occasion during this time, speculators would then sell their gold to drive the price right back down again.
They sold their gold to take profits and nothing more. These traders manipulate prices for the short-term. But the economy and other geopolitical factors will ultimately drive up the price of gold in due time.
In fact, it’s happened numerous times in the last seven years according to George Milling-Stanley. He’s the Head of Gold Strategy for State Street Global Advisors in case you’re wondering. So he knows what he’s talking about.
According to other gold strategists, they say current technical indicators prove that the sentiment around gold is changing. And they believe it is changing for good.
Why? One expert named Nicky Shiels of Scotiabank remembers gold’s attempts to cross the $1350 per ounce barrier. It tried and failed six times during the last four years. Now that gold has finally busted through this ceiling, she believes the $1350 ceiling is now the current floor. She feels this significant move is a precursor of things to come.
Are Geopolitical Forces Driving the Price of Gold Higher?
At a historical level, gold prices and interest rates tend to move in opposite directions. When interest rates are cut by the Federal Reserve, it weakens the US dollar. This in turn causes investors to get nervous. They take their money out of riskier investments like the stock market and stockpile it in gold.
Why? Gold doesn’t fall under the purview of the Federal Reserve. And gold prices aren’t going to suddenly drop during geopolitical struggles and strife. In fact, it’s quite the opposite. Gold tends to gain value during tough geopolitical times.
Take the ongoing trade war between China and the United States as an example. Let’s not forget about the threat of war between Iran and the US. And the statement by the Federal Reserve was the final match to light gold prices on fire. They’ve busted through the glass ceiling and could very well continue to rise in this tough climate.
Is the Trade War with China Truly Over?
Unfortunately, the US and China trade war is currently on pause. But make no mistake and convince yourself that it’s over. Sure, Trump and President Xi met at the G 20 summit in Osaka. Everything wasn’t exactly wine and roses although they set their differences aside for the time being.
Some things mentioned during the G 20 summit by President Xi include:
- Current animosity between China and the United States.
- Protectionist trade policies criticized by the US.
- Multiculturalism praising during his opening remarks.
- No final breakthrough in trade talks between the US and Chinese president.
- Only temporary postponement of further tariffs while renegotiations commence.
As you can see, the trade war is far from over. In truth, it may never come to an end during the Trump presidency. This can and will certainly push the value of a gold IRA much higher in the months and years to come.
Russia and OPEC Driving Oil Prices Higher
Current oil policies are also providing support for gold. Saudi Arabia and Russia made an agreement to continue to reduce oil production for another 6 to 9 months. This will create less supply and more demand, ultimately driving the price of oil higher.
How does this affect gold prices? Typically speaking, when oil prices remain high, gold tends to remain high right along with them. This is another reason for gold prices to remain above the $1350 per ounce barrier.
Precious Metals IRA Investing: A Remarkable Safe Haven Retirement Investment
The instability, economic turmoil, and current geopolitical climate prove that it’s time to open a gold IRA account. Never allow yourself to become a hostage of an unfavorable economic and geopolitical situation.
Instead, take some time to learn how to hedge your bets against inflation and other factors. Are you ready to take matters into your own hands?
Learn about investing in a gold IRA sooner rather than later. In fact, we recommend visiting the List of Top 10 Gold IRA Companies. It’s an excellent resource to further your education about precious metals investing for retirement.
Do you have any questions on the article or how to protect yourself from the worst that is yet to come? Ask below!
I’ve been keeping a close eye on this trade war between the US and China due to the fact that I have a decent investment in a number of American tech stocks…unfortunately I also invested a bit in AliBaba!
I’m wondering what your views are on the length of these negotiations, as they are not only affecting gold prices, but also numerous American (and British) stocks?
These days I tend to hold my breath whenever Trump comes out with something new…as I realise how many markets could be affected by it!
Hello Chris! Gold prices tend to go up when stock prices go down and vice-versa. In the end, my view is that stocks are not worth the long-term value as much as investing in physical gold is. The stock market is extremely volatile, but we can count on gold prices to continue rising in the long-term not only because of imminent financial catastrophes but also the continuing printing of currency (fiat money). The dollar continues to be devalued because of money printing but that will only make gold prices higher. Stocks, on the other hand, will rise in value if gold decreases in value, but we can see that gold tends to rise in value in the long-run so it’s the solid winner. Thank you for dropping by and the inquiries!
Very interesting post. From the outside it has appeared that the economy has been doing well. However your comments about the rising gold prices has provided food for thought in that area. I have thought about investing in gold before but never really understand how one could do so. The Gold IRA is something I am going to look into. Thanks
Hello Robb and thank you for the comment! You may feel free to navigate the website for more information about investing in a gold IRA! Thank you for dropping by!
Investing in gold is a means of breaking through economy fluctuation. I have been contemplating about where this war between US and iran, Us and China would land. I can’t believe the repercussion is already manifesting. As if I knew this would happen before I took a cleverr step in investing in gold but not gold IRA. I don’t know if you’ve heard about mene before. Where is this company for gold IRA located? I think I will have to check on that and see what they offer.
Hello Stella! You can learn more about a gold IRA here and you can view more information about gold IRA companies here. You are right to invest in physical gold, but a gold IRA may be more convenient because you can simply rollover or transfer a part or your whole retirement plan into it. The gold IRA company takes care of all the work for you, including holding the physical precious metals. Thank you for dropping by with your comment and inquiries!
I have been advised by several people in the past couple of years to invest in gold. I am grateful I ran across your article. You gave these advisements a lot of validity and backed it up with real world economic complications for examples of why it is a great idea. Thanks so much for that!
I will bookmark your site and return for more great investment advice and tips. Thanks again!
Hello Shannon and thank you for the encouraging comment and sharing your own experience with investing in gold! I’m glad you found the articles in my website helpful. Thank you for bookmarking my website and thank you again for the supportive comment!
I haven’t personally done a lot of investing in the markets, but I have always been told that investing in precious metals was the way to go. You have built a strong case in supporting this. Gold is a commodity that will always be strong even thru the turbulent times. Do you have suggestions for other precious metals to invest in? As I believe, when we make investments, I hold strong that it is for the long term and would want to invest for my retirement.
As you have pointed out politics plays a big role in the commodities for investing and affects the value of our shares very quickly. With tensions between the US and China, and the fact that oil prices could be driven up you make some really valid points on investing in gold. Thank you for your great insight, I plan to explore this opportunity further. Look forward to your response.
Hello Wanda! Thank you for the comment and sharing your own personal experience and insight about the precious metals market with us! Indeed, gold and other precious metals will do well even in financially turbulent times. I recommend three other precious metals and in this order: silver, platinum, and palladium. All three precious metals will not only do well during times of economic crisis but as I perceive, will also rise in value in the long-run as long as the United States Federal Reserve keeps printing the dollar as a fiat currency not backed by anything. Oil prices tend to go up along with gold. It is best to invest in physical assets that can stand the test of time such as land, oil & gas, and physical precious metals. I’m glad you came to my site, Wanda! And thank you for the encouraging comment!
Hi!!
This is horrible!!! Is it really!!! If yes, then this is like a bad dream. The price already became $1422!! How can it be handled I never know. This war bitween the US and china is really creating so much trouble for us to trade with them. Good to know about the war is currently in pause.
Hi Touhid! Indeed, it is horrible for the economy but it’s actually good news for people who have already invested in physical gold. Thank you for the comment!
Your review about the research on the list of best IRA option that you share on your post is very helpful and i ts educating, I learn the reason why gold will be on the support that it had break which will now turn to its resistance so that it can favor all the investors with the best IRA options, this is another information on how to make extra income through the best IRA options. Thank you your post is helpful
Hello AmDetermined! Thank you for the encouraging comment. I am glad my posts were helpful to your learning!
Thank you very much for this information. I have heard of gold IRA investing in commercials on the radio recently, but I needed to do some research and that is how I found your website. I currently have an IRA and I also have precious metals of gold and silver in a safety deposit box in my bank.
Is there a way that I can rollover my current IRA into a precious metals IRA, or would you suggest I start from scratch? Though I do not intend to move my gold or silver bullion, just out of curiosity, is there a way to move some of my bullion into a precious metals IRA or is that metal purchased from with the IRA itself?
Hello Robert! Thank you for the comment and the inquiries. You can read more about how to rollover your current traditional IRA into a precious metals IRA here. Basically, it is easy to rollover or transfer any traditional or Roth IRA into a precious metals IRA. A note to remember is that a rollover usually has a minimum amount (about $10k) while you can easily transfer any amount of funds from your current IRA into your new precious metals IRA.
As for the precious metals bullion your currently have, it is most likely that not all of them are IRA-approved. The IRS laid out some prerequisites for the fineness of the precious metals, so that IRA-approved precious metals coins and bullion have to be at a specifically laid out high level of purity. You can read more about IRA-approved precious metals here.
My recommendation is that you still rollover or transfer your current IRA into a precious metals IRA. Just keep the physical precious metals that you are currently holding, but add the precious metals IRA into your portfolio for added protection.
Thank you for the comment and inquiries! I wish you all the best in your investment decisions!
Hello,The
article is about the reason for rising gold prices. In this article, we
show the main reason for rising gold prices is some political problems
between China and us. If the problem doesn’t get solve it’s too tough to
buy gold for the public. It also affects the economy of U.S.Now the
current price of gold is 1422 per ounce & it is climbing which is
not good news at all.
Hello Jazom! Thank you for the feedback – I am glad you learned much from my post! Rising gold prices are no good news at all but for the investors who have been investing in physical gold it may come as the best news. That’s the irony. Thank you for the comment!
Hello,It’s a
great concern for the U.S. because the way rises the prices of gold.
From this article, it’s clear that the main issue of this problem is
China & US war. Now the price cross $1400 which is very bad news for
the public of the US. The politicians hope that the problem will solve
soon
Hello Jazom! Indeed, the trade wars are highly to blame for the rising gold prices, but so is the continual printing of paper currency by the fed. The only thing that the politicians can do right is to put the gold standard back, but we know that is not happening anytime soon which will only make the price of gold increase in the long run. Thank you for chiming in!
Hi,Alas! This
is a bad news gold price is rising day by day. This price is already
reached $1400 per ounce barrier. In fact, it is Busting Through the
$1350 per Ounce Gold Prices Barrier. This price rising will create many
problems in the world gold business. Take the ongoing trade war between
China and the United States as an example. Let’s not forget about the
threat of war between Iran and the US
Hello Taj! I’m glad my article is an eye-opener for you! Indeed, we have way too many financial catastrophes ahead of us and the best thing to do at these times is to simply invest in physical gold. Investors will have to make that decision for themselves before time runs out. Thank you for the comment!
hi david!Nice
article. Thank you to give the informations. The US and chaina war
really put us in trouble in trading gold. It really creats problem to
purchase this precious material specially for the traders like us. It is
totally surprising to know about the price of over $1400!! Hope the
condition will be okey soon!
Hi Tanzila! Yes, the problem is very bad for traders but it’s good news for physical gold investors! This is why I encourage everyone to invest in a gold IRA rather than paper assets like stocks, bonds and currencies. Thank you for the comment!
Hello David!This
is totally surprising and annoying that the price of gold is rising too
high. Stucked to know that the price is over $1400 in a very short
period of time. Thanks for sharing this. Purchasing gold from the third
world is now easy and profitable I think. There will be no other option
if this war is not finished. Happy to know that the war is in pause now.
Hope it will be finished as soon as possible
Hello Radeet! Sure, but there is a good side and a bad side to all this like the two sides of a coin. For one, it’s bad news for paper asset investors who invest in stocks, bonds, and currencies but good news for the investors who have wisely invested heavily in precious metals until now. Thank you for the comment!
Hi!
Thanks for sharing this. This gives the important information we need to decide about oir trading. Though the war between US and china is in pause but it is not over yet. So there is so much tension about trading and this is not in mood of lowering. The price of $1422 per ounch is really intolerable. Hope the summit between Trump and the president Xi will bring some good solution.
Hello Polash! Unfortunately, the summit did not bring such good news and China has also sanctioned US products the same way the US has sanctioned Chinese products. There is no good news foreboding for the economy at this moment except for the investors who have invested in physical precious metals until now, especially gold. Thank you for the comment!
Hi David,
Gold is very important in our economy. But it is a matter of great sorrow that the main reason for rising gold prices is many political problems between China and the USA. It is a curse in the world economy. Gold has found itself in a very limited price pattern for the last seven years. Currently, the gold traders are in tension. We want it to be normal.
Thanks for a nice review 🙂
Hello Hossen! Thank you for the encouraging comment! There are many factors for the rising gold prices including the trade wars, but we especially have to remember that fiat money is continually being printed by the Federal Reserve in copious amounts and not backed by anything. If we do not go back to a gold standard or at least have the dollar be backed by something tangible, the price of gold will only continue to rise. Thank you for the comment!
Glad to hear that the price of Gold is rising. As a holder of a few small kinebars, its good news for me. The only negative point for people who want to make money now is that its a long term investment.
I used to buy gold until 2013 then I stopped, and now I think I made a mistake, I should have continued. Since 2012 up to 2016 the price of gold was decreasing (one of the reasons why I stopped). I believe the lowest rate was around 1100 dollars per OZ. However, when I see how the price is “climbing” I want to invest in gold again.
As you mentioned, there are few essential factors that influent the demand and I am more than sure that the price will rise even more shortly. I fully agree that investment in gold is safe, and we shouldn’t worry about geopolitical struggles.
Sometimes for beginners, it’s hard to understand the market. I will be back on your site to educate myself a bit more 🙂
Hello Snap Brisk and thank you for sharing your experience with investing in gold with us! Yes, I think you did make a mistake when you stopped investing in gold but it’s never too late. The reason that the price of gold will rise in the long-run is mostly due to the fact that the Federal Reserve keeps printing the dollar, which is fiat currency not backed by anything. If the United States does not go back to the gold standard or at least make the dollar backed by something tangible, the dollar will only continue to decrease in value and gold increase in value in the long-run. This is why I believe you should invest in physical gold in the long-run. Short-term ups and downs are caused by many factors, but we’re not going to see the Federal Reserve stop printing money anytime soon (well, only God knows), so it’s very safe to invest in gold – even now. Thank you again for sharing your experience with us and the encouraging comment!
Hello,
in this article, we show the main reason for rising gold prices is some political problems between the USA and China.we know that China progressed a lot in the economy. But many countries do not like china. I think it is a curse in world economy. It is not good at all. According to other gold strategists, they say current technical indicators prove that the sentiment around gold is changing. We want the Gold Market to be normal. Thanks for a nice review.
Hello Touhid and thank you for the comment! We do know that the sentiment about gold is changing, and it’s mostly because people are now aware that it is the best thing to invest in in a bad economy. This is a good thing for wise investors and a bad thing for the majority of the people who want to cling on to the dollar. Thank you for again for the supportive comment!
Hello David,
First of all, it’s a fantastic article. Because, I came to know about the price hike of gold. Recently the US is facing a great problem where the prices of gold are rising day by day. It also impacts the economy of the US. The main reason behind some political problems is the trade war against china. I feeling bad for the financial problem of the country. But, a bit happy too because there is a person who is my financial rival. He invests in gold. That’s why I said ‘fantastic’. No offense!!!
Really don’t want to hurt anyone.
thanks for the news and nice article 🙂
Hello Harber and thank you for a very unique and entertaining comment and also for sharing that information about your friend. Now, it’s your turn to invest in gold if he is a financial rival don’t you think? You don’t want him to excel above you in investments do you? Now is the time to invest in physical gold! Thank you for chiming in, Harber!