The Time to Buy Gold Is Now


by Justin Spittler, Casey Research:

It finally happened.

On Monday, the price of gold topped $1,300 for the first time since November.

But gold didn’t just inch past $1,300. It blew past it.

Just look at the chart below. You can see that gold jumped from $1,298 to $1,315—a 1.3{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} gain.

Since Monday, gold has held steadily above $1,300.

This is a big deal, and not just because $1,300 is a big round number.

• Gold tried to top $1,300 three other times this year…

It failed each time it got close. Just look at this chart.

You can clearly see that $1,300 acted as a key resistance level. It prevented gold from rallying.

But it won’t anymore. That ceiling has been breached.

This is a major victory for gold bulls. But it’s not the only reason to like gold.

• A perfect storm has hit the gold market…

North Korea is launching missiles at Japan.

Donald Trump is threatening to shut down the government to pay for the wall.

And Hurricane Harvey has rocked Houston, America’s fourth largest city. Some estimates say the storm did more than $100 billion in damage. Now, the federal government will likely shell out billions of dollars in aid, and that means sinking deeper and deeper into debt.

Long story short: investors have plenty to be nervous about right now. And that’s good for gold.

You see, gold has survived every financial crisis imaginable. It’s the ultimate safe-haven asset. This is why every investor should own a little gold. (We recommend having 10-15{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of your money in gold at all times.)

But here’s the thing. Not everyone owns gold as a chaos hedge. Some people buy it for quick profits. They trade it.

And Monday’s big breakout could be the buy signal that many traders have been waiting on.

That’s because $1,300 was a key psychological level. It was keeping a lot of investors from buying gold.

But that resistance has been broken. And that means a lot of people who were on the fence about gold could become new buyers.

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