Truce or Retaliation

Dear Rundown Reader,

More of your opinions on trade-war tariffs:

“I think tariffs are nothing but countries and their leaders puffing out their chests.

“I understand that some may be necessary to not overwhelm their countries’ productivity and jobs but if countries would simply trade equally then I don’t think tariffs would be needed.

“Trump is killing our economy down the road if he doesn’t quit the crap and stop pissing off the world and learn to negotiate for better trade practices.”

And this from a reader who forecasts what he believes to the be the ultimate trade-war outcome:

“In the end, no matter what happens, the consumer will get the shaft. Prices will go up.”

That’s a fair assumption. We’ll see how things shake out in the next few months. Especially after the holiday shopping season.

Pivoting to a new topic altogether, after reading The Rundown today, let us know your opinion on gold as a safe-haven play.

Do you own gold or other precious metals? Why or why not? Do you go for physical gold or ETFs?

Your Rundown for Monday, September 24, 2018…

Crash-Proofing Gold

Seabridge Gold Inc. (NYSE: SA) is an exploration company that operates in Canada and the United States. Like its name, the company searches for gold deposits as well as silver and copper.

On the strength of Q2 earnings, several institutional investors are buying more Seabridge shares, including heavy-hitter Van ECK Associates.

Raising Stocks

Looking at Seabridge’s premarket price this morning, shares are up just over 7%.

Gold’s been the safe haven of choice for investors for decades but that didn’t seem to work out too well in the last market crash.

In 2008, when Lehman announced bankruptcy, the bottom dropped out of all asset classes, including gold by 30%.

Up until that time, gold was in a 7-year bull market. Its price reached an all-time high of $1,030 in March, 2008.

According to Rudi Fronk and Jim Anthony, founders of Seabridge Gold, “If a financial crisis were to unfold today, it would meet a very different gold market.”

Things are almost the opposite now. Gold’s experienced a 7-year bear market, peaking at $1,921 in Sept. 2011 and dropping to a low of $1,045 in Dec. 2015. On average, gold’s about $1,190 today.

“Not surprisingly,” though, “many investors think the next crisis will look like the last…all asset classes will fall in price including gold,” they continue. “Gold will then rocket higher as central banks confront the crisis.

“We disagree. We see few if any parallels between today’s gold market and the gold market in 2008.

“We do not expect gold to correct in the early stages of a new financial crisis; we see an almost immediate positive impact on the gold price from a crisis and central bank policy responses.”

It seems institutional investors agree.

Market Rundown for Mon. September 24, 2018

S&P 500 futures are down 6.5 points to 2,923.08.

Oil’s up $1.37 to $72.15.

Speaking of gold, it’s up $6.40 to $1,207.70.

Bitcoin’s lost $84.69 to $6,618.

Have a great day. We’ll talk tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown. Aaron’s been with Agora Financial/Seven Figure Publishing for 13 years. He's been covering technology and markets for over a decade.

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