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Tags: diversify | stocks | precious | metals
OPINION

Now Is the Perfect Time to Diversify From Stocks Into Precious Metals

Now Is the Perfect Time to Diversify From Stocks Into Precious Metals
(GilbertC/Dreamstime)

Mike Fuljenz By Wednesday, 05 September 2018 05:49 PM EDT Current | Bio | Archive

September is the worst month for stocks and the best month for gold.

Beyond that, the current stock market is now in record territory – the longest bull-market ever – while gold is in a very depressed situation, similar to past market bottoms. The time to diversify is not AFTER the stock market has fallen, or gold has taken off, but before these major moves begin.

History has shown that stock market declines can happen fast. Stock market declines happen faster and sharper than stock market increases, while the opposite is true with gold: Price increases in gold are far sharper and faster than the declines in gold prices. Here are some examples of stock market dangers:

  • Earlier this year, January 26 to February 8, the U.S. stock market declined over 10% in just 10 trading sessions. The Dow Jones Industrial average suffered its only two 1,000-point daily declines in one week, falling 1,175 points on February 5 and 1,033 points on February 8, 2018.
  • We are now approaching the 10th anniversary of the financial crisis of 2008, triggered by the failure of Lehman Brothers on September 15, 2008. The stock market fell sharply (down 40%) in just two months, September 19 to November 20, 2008, eventually falling 55% by early 2009.
  • The current bull market has become the longest-ever bull market, eclipsing the bull market that ran from October 10, 1990 to March 25, 2000. The current bull market began on March 6, 2009. That doesn’t mean it will end tomorrow, but its days are historically numbered.

There is no particular hurry to exit stocks and buy gold, but the point is that you should not wait for stocks to start falling, because when the correction comes, it can come fast, leaving you with weaker bids for your stocks.

Better to be a week or a month early than a day late.

The same goes for gold. When gold takes off, it rises rapidly. You can easily miss the first 10% of the rise. Wall Street often does! They wait for the first big move before they issue their buy signals.

For instance, American Gold Eagle Coin sales picked up noticeably over the summer months at the U.S. Mint this year. During the first four months of 2018, only 72,000 ounces of American Gold Eagle coins were sold, but total Gold Eagle sales escalated to 105,000 ounces in the next four months of the year, May to August.

More importantly, sales of American Gold Eagles more than doubled in the summer of 2018 vs. 2017:

American Silver Eagle coin sales also increased in August, even though American Silver Eagle sales are down for the year as a whole. In August 2018, 1,530,000 one-ounce Silver American Eagle coins were sold by the U.S. Mint, almost 50% above the sales of 1,025,000 silver ounces in August 2017.

Mike Fuljenz is a member of the Newsmax Finance Brain Trust. He is also the editor of the NLG award winning Michael Fuljenz Metals Market Weekly Report. Discover more by Clicking Here Now.

© 2023 Newsmax Finance. All rights reserved.


MikeFuljenz
When gold takes off, it rises rapidly. You can easily miss the first 10% of the rise. Wall Street often does! They wait for the first big move before they issue their buy signals.
diversify, stocks, precious, metals
513
2018-49-05
Wednesday, 05 September 2018 05:49 PM
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