Hawkish Fed Sparks Rally in Gold and Silver

With economic growth continuing around the world, most notably in the U.S. and major global markets, attention has been drawn away from gold and silver—but investors should reconsider this stance, as these factors signal a great buying opportunity for the two metals. Last Wednesday’s Fed meeting saw rates rise from 1.75% to 2%, with rates forecast to end the year near 2.4%. The Fed is expected to raise interest rates two more times this year for a total of four rate hikes in 2018. Despite this news, the Federal Reserve might not be in for smooth sailing—something which could bode well for gold and silver.

Although news of the rate hikes initially led to a dip in metals prices, metals were quick to recover, with gold and silver climbing to above $1,300 per ounce and $17 per ounce, respectively. Silver's jump, in particular, caught investors' attention, as the metal has only climbed above $17 once since early February. Investors should also keep an eye on the Gold/Silver Ratio (GSR), which reflects the amount of silver it takes to purchase one ounce of gold. The GSR has been progressively decreasing in recent weeks as gold and silver prices continue to climb and the gap between the two metals shrinks. Earlier this year, the GSR reached 80, and historically, following such a move, silver prices will begin to correct and outpace those of gold to the upside. Several experts believe we could be seeing this right now...

Many argue that inflation coupled with weak housing, auto, and retail sales doesn’t speak well for the Fed—which could eventually lead to higher metals prices. Head of commodity strategy for Saxo Bank, Ole Hansen, argues, “The risk of another cat-out-of-the-bag rally (for gold) has increased—not least considering the dollar rally showing signs of pausing following the recent run-up, U.S.-China trade worries not going away, and rising inflation concerns keeping U.S. real yields range bound.”

American Flags and American Eagles

We have two great ways to own gold and silver... inspired by Flag Day last week and the upcoming Independence Day holiday. For investors looking to take action while the two sister metals are priced relatively lower on a temporarily stronger economy, we have two excellent opportunities for you to add gold and silver to your portfolio. Right now, 10-ounce SilverTowne American flag bars are available at a remarkable premium. For a limited time, you can purchase these 10-ounce silver bars for just Spot + 99¢ per ounce* for any quantity ordered.

¼-ounce gold American Eagles are now also selling at attractive premiums, which is particularly uncommon for fractional gold. Fractional gold coins are ideal for investors looking to start investing in gold in a more affordable price range and are the perfect investment for those seeking greater divisibility in their investments—but the premiums are typically much higher than 1-ounce coins. Usually, the smaller the coin, the higher the premium. However, right now, you can purchase ¼-ounce gold American Eagles for just Spot + 5% per ounce*.

To add either of these attractively-priced gold and silver products to your portfolio, please call us at 800-831-0007 or email us. With inflation increasingly on the rise, metals prices are largely expected to increase in the coming months, making now the time to add to your holdings.

*Prices subject to change based on market fluctuation and product availability. Prices reflected are for cash, check, or bank wire. ¼-ounce gold American Eagles are available in random dates. Minimum order of four (4) ¼-ounce gold American Eagles and ten (10) 10-ounce SilverTowne American flag bars. Offer expires Friday, June 22, 2018, or while supplies last.