TURNMIRE TRADING NEWS MINUTE
Gold At Costco!? What’s It Mean?
Have you noticed something shiny in the aisles of Costco lately? That's right, we’re talking about gold bars!
It might seem strange to see these precious metals next to your favorite bulk buys, but it turns out there's a big reason why gold is having a moment.
So, what's going on? Well, many experts — and even regular people on the street — believe the whole world economy is shakier than it appears.
There's inflation, which means your dollar doesn't buy as much as it used to. And while it seemed like it had been under control, last month’s CPI print showed that it’s proving to be more persistent than The Fed would like.
Then we have the uncertainty…
The Russia/Ukraine war is now well into the start of its third year and many experts believe it's not just about Ukraine... if Putin gains a foothold, many believe he has global ambitions, to spread his campaign to the rest of Europe and beyond.
Meanwhile, we have instability in the Middle East, as the war between Israel and Hamas has at times involved Lebanon and more recently has extended to include Iran. Just the potential oil shocks that a wider Middle East conflict could introduce is enough to send shivers down your spine.
Economic concerns like inflation and persistent supply chain issues are compounded by a changing global order. The decline of the US and the vacuum it creates could lead to the rise of China as a major world power.
At the same time, things here at home aren’t great.
Despite government reports showing low unemployment and high job growth, credit card debt is at all time highs, and the delinquencies — people that can’t pay their credit card bill — are at levels we haven’t seen in over a decade.
And the government’s money-printing and low interest rate plan seems to be running into problems.
All this leads to a shaky outlook on the economy.
And when things get shaky, people tend to turn to gold. Gold has a long history of holding its value, even when other investments go down.
That's why you might see people at Costco, along with their usual grocery haul, grabbing some gold too.
Many experts are saying that gold’s recent bull run, peaking at 22% from the February lows could just be the start. Plenty of experts, including our own Jeffry Turnmire, have been talking about gold potentially reaching $3,000/oz or even $5,000/oz.
Jeffry even tells us that he has one mega long-term upside target as high as $30,000 an ounce – though that’s an extended target that’s potentially 10 or more years away. are a bit longer term.
Think of it like this: If it feels like things are going to get worse before they get better — war, high food prices, debt, inflation — gold is likely to keep climbing.
And those folks buying gold at Costco could be right on the money.
— The Jeffry Turnmire Trading Team
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