gold bars

When the analysts at Capital Economics say $1,400 gold is ahead, investors listen.

After all, this is the fabled company that won the Wolfson Economics Prize: the second most prestigious economics prize in the world (after the Nobel Prize)!

These days, Capital Economics is looking past the current burst of economic growth to a darker period they believe lies just ahead for America.

“We are more positive on the prospects for [gold] prices in 2019 and 2020 when a cyclical slowdown in the U.S. economy will force the Fed to end this tightening cycle sooner than it anticipates,” said Capital Economics commodities analyst Simona Gambarini.

Capital Economics believes that a looming slowdown is near at hand, driven by higher rates, fading economic power and the fallout from trade tariff wars.

According to their analysis, this will drag on growth and eventually cause the Federal Reserve to reverse direction and lower rates again in 2020.

What is going on?

Their two major points to ponder are as follows:

A trade war that spirals out of control is a big potential risk on the horizon. Especially if NAFTA collapses: probable collateral damage from America’s troubled relationships with other countries in the Americas.

Capital Economics believes that “the latest tariff threats… raise the risk of a much worse scenario, in which exports fall outright.”

The recent rise in rates is eerily similar to other pre-recessionary periods, says Capital Economics.

“The sharp rise in real market interest rates seen in recent months is already feeding through to a rise in household borrowing costs,” they say. “That is as large as the average increase in real rates seen prior to the past five recessions,” the report continued.

Capital Economics doesn’t pull any punches when summarizing the situation: “There is a significant risk of a recession in 2020,” say their detailed report.

This sobering forecast gives everyday, hard-working investors like you and me plenty of reasons why safe-haven assets like gold and silver deserve strong consideration for our home safes and/or IRAs.


Kitco global trading director Peter Hug stated this week that the current premiums for physical gold make it a great time to consider gold.

“Retail buying has begun to emerge, which suggests investors remain engaged, albeit looking for lower entry points,” Hug wrote this week.  “In past cycles, when lower prices enticed buyers in quiet markets, the demand surge caught producers by surprise and premiums rocked higher.”

Will prices rocket higher before the end of 2018?

Hug says that the most important thing to focus on is how to acquire gold at the current historically compelling levels.

“Physical premiums remain at historic lows for investors looking to add to their holdings,” said Hug.

In his regular CNBC commentary, NationsShares chief investment officer Scott Nations agreed that gold might be at an attractive buying level and said “I’m buying.”

Compelling perspective for anyone looking to protect their assets from volatility and the decline of the U.S. dollar over the medium to long term.


According to a June market study in Forbes Magazine, investment pros regard gold as an attractive diversifier against dollar decline and market volatility.

Do you agree?

Forbes pointed out four key components of their findings:

1.Gold tends to rise when the dollar falls

2.Gold is good to own in times of “market stress”

3. Gold’s natural volatility helps it diversify well against stocks and bonds

4. Adding gold can reduce overall portfolio volatility

Says Forbes, “Lower volatility is tantamount to lower risk.”

In my opinion, that’s what every investor should strive for: lower volatility. Especially those who are looking down the barrel of imminent retirement.

Your family’s future and your legacy are simply too important to put at risk, for any reason!

According to Forbes, all the veteran investors they interview tend to own gold for one of the following three reasons: “To help with portfolio diversification, or as a hedge against the declining value of paper money, or as insurance that you’ll always be able to raise cash by selling some of the metal.”

Do one of these scenarios apply to your and your retirement future?

It is common to have a lot of questions before making your decision.

Luckily, it is easy to learn what you need to know to make a good decision about gold or opening a gold IRA.

Please let us help you take that first step.