Assassination Attempt Sends Gold, Markets Soaring Again

John Maynard Keynes is often credited with saying, “Markets can remain irrational a lot longer than you can remain solvent.” This saying is usually referenced during downturns in the hope that things will turn around.

However, markets can also stay irrationally high, which is when we need to be especially careful. A bubble can build up into the stratosphere and take your solvency down with it when the crash eventually comes.

Markets usually hate chaos and uncertainty, but they can be irrational. They seem to be going up in response to a failed assassination attempt on President Trump! In this case, markets may be bubbling up irrationally, only to pop more spectacularly, as the fundamental value just isn’t there in most cases.

Is it time to count your lucky stars and take some profits now before things take a downturn?

One thing that does make sense is the lift in gold prices as this is happening. Gold was already up on Friday, likely due to hints from Jerome Powell that rate cuts are coming and mortgage rates are down. More inflation could be on the way.

But gold began another dramatic swing upwards once trading opened Monday morning after the shooting incident in Pennsylvania.

Gold broke to new highs Tuesday, topping out at $2,467 an ounce as investors reacted to political uncertainty and violence.

Steve Forbes recently spoke with Reagan Gold Group and said that the lockdowns gave us the worst of both worlds in terms of inflation—nonmonetary and monetary.

Nonmonetary inflation occurs when supply chains are disrupted and the economy cannot meet demand. Monetary inflation is currency devaluation through things like stimulus checks and money printing. He further stated that investors and retirees should see gold as an insurance policy when things go wrong. They should hold a portion of their net worth in precious metals and keep it in their physical possession, if possible.

Perhaps those wise words from Steve Forbes sum up exactly what is happening in gold markets right now. Not only do we have political chaos and uncertainty, but we are also still dealing with pandemic hangover inflation as well.

What does the future bring? The only certainty this election season is more surprises as we watch history unfold before our eyes. If you are not yet diversified out of irrational markets, perhaps now is the time before gold prices and demand get out of hand. Trade in some of that market froth for solid gold. Reagan Gold Group can help!