Gold Standard and Watchlists

For your opinions on monetary policy and more…

“President Nixon was compelled to go off the gold standard as a result of President Johnson’s  double wars — Vietnam and the War on Poverty. Johnson faced… a HUGE deficit in the annual budget.  

“At that time, Social Security was off-budget and Medicare had not really started.  SO… Johnson (or his minions) added the Social Security Trust Fund ( which was showing a net surplus each year at that time) and also Medicare to the Consolidated Federal Budget — and presto! — the deficit looked MUCH better.”

And this on privacy:

“For the reader who’s unconcerned about anyone listening to random conversations, he should be concerned about social engineering and, at least, the fact that a digital thief can leverage enough of your conversations [for] identity theft.

“At the other extreme, you have the thought police: Even your casual conversations can be flagged by any three-letter agency as something for concern, placing you on someone’s watchlist that can restrict your life in unknown ways.”

Your Rundown for Friday, July 19, 2019:

Gold “En Fuego”

Yesterday, gold’s price hit a six-year high — this as a result of the Fed dangling the prospect of interest rate cuts? Tensions with Iran?

Does it matter?

At The Rundown, we’ve talked about gold numerous times. (Notwithstanding the market notes.) We’ve surveyed readers about who owns gold and why. We’ve even cajoled readers to diversify with precious metals.

We genuinely hope you took our advice.

Back in February, we said: “We’ve previously recommended one gold ETF: VanEck Vectors Gold Miners (GDX). And with gold’s ascension in 2019, mining stocks are getting a lift.”

And how…

At Market Watch this morning we read, “Gold futures are brandishing lustrous gains but a popular exchange-traded fund focused on companies that mine the yellow metal is en fuego.”

On fire. GDX is dashing up and to the right — by 33% year to date.

To put that in perspective, compare to gains in the broader market this year…

  • Dow’s up 17%
  • S&P 500’s up 19%
  • Nasdaq’s up 24%

So does GDX still have room to grow? Analyst Jeff deGraaf says: “We see momentum building in the miners again and it’s likely that the next leg higher is starting with yesterday’s breakout.”

Invest accordingly.

Oh, and if you’ve already bought into gold, mining stocks or precious metal ETFs this year, we’d love to hear your story.

Market Rundown for Fri. July 19, 2019

S&P 500 futures are up 4.75 to 3,002.25.

Oil’s up 69 cents to $56 for a barrel of WTI.

Gold’s added $10.40 to its price of $1,438.50 per ounce.

Bitcoin is down $117.80 to $10,520.04.

Have a great weekend. Don’t forget to check out Saturday’s best-of issue.

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 and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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