We've all known this was coming, we just didn't know when.
For the first time in five years, the Federal Reserve's preferred inflation gauge hit its target. Despite all of the deflationary forces, like lower consumer spending, higher savings rate and stagnant wages, the Fed was able to boost the personal consumption expenditures (PCE) to over 2%.
This means another rate hike is coming, and our 52-week high for gold this summer could come as early as May.
With central planners worldwide taking unprecedented actions for the past 10 years, we've always speculated on the ultimate exit strategy. No matter whom we spoke with, whether it was Doug Casey, Rick Rule, or former CIA advisor Jim Rickards, a new war has always been a reliable bet.
Last month, the new Secretary of State said this about North Korea: "diplomatic efforts of the past 20 years to bring North Korea to a point of de-nuclearization have failed."
He also said "military action was on the table."
Friday, the new Secretary of Defense added that "North Korea has got to be stopped!"
A new war in Asia would allow central planners to extend emergency measures for another decade.
It would allow the market to ignore exploding U.S. deficits that are coming, because it could all be blamed on the war efforts and "protecting America."
Keep in mind that all of this is heating up while President Trump is scheduled to host the Chinese President on April 6th and 7th here in the U.S.
In the 2000s, we had a rising rate environment, exploding personal and public debt, and war.
Major indices rose, gold went up for 12 consecutive years, and it all ended with the 2008 financial crisis.
With negative real yields, one investment I am certain of is hard assets.
We recommend up to 10% of your liquid net worth be in precious metals for financial insurance and peace of mind as the central planners and Western governments once again lead humanity into a very dangerous time in order to keep their Ponzi schemes going.
For readers looking to position themselves in a gold junior, I suggest our new gold stock suggestion that just started to trade on Friday.
It has a better upside in 2017 than any other junior on the TSX Venture exchange, in my opinion.
Best Regards,
Kenneth Ameduri
Crush The Street.com
Editors Note: To download our most recent gold stock profile, click here.
Kenneth Ameduri is the chief editor and cofounder of financial publication letter CrushTheStreet.com. He was a founder in Future Money Trends and Wealth Research Group, which have gone on to be vital sources of education and wealth for hundreds of thousands of readers. In his 20s, Ameduri has founded multiple businesses that have gone on to be worth millions of dollars. Ameduri was also a founder of FMT Advisory, which successfully manages millions of dollars in client funds. He is an ardent student of Austrian economics and anticipating market trends as he has successfully invested and built companies for more than 15 years.
Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
Disclosures:
1) Kenneth Ameduri: I, or members of my immediate household or family, own shares of the following companies referred to in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies referred to in this article: None. My company has a financial relationship with the following companies referred to in this article: Kenadyr Mining Corp. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor's fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview or article until after it publishes.
Chart courtesy of the author
