September 4, 2024

(HEDGE AGAINST MARKET RISKS WITH GOLD & SILVER)

September 4, 2024

Hello everyone.

Let’s get real. August, September & October are usually very tricky months for the stock market. Or to put it another way, the market is usually awful and moody during these months. So, expect quite a bit of turbulence during this time.

The market could pull back 7-10% during this time. The U.S. election is coming up and the Fed meets in mid-September to deliver rate cuts or not. The environment makes people nervous. And people become cautious at this time.

The release of the non-farm payrolls data this Friday could cause a lot of volatility. If the August data comes in hotter than expected, September rate cut expectations might be quickly marked down.

Still, markets are pricing in a 67% likelihood that the Federal Reserve will cut by a quarter percentage point in September, according to the CME FedWatch Tool.

Stock up on Gold as a hedge against geopolitical and financial risks.

Going into year-end and well into 2025, we should see gold rally toward $3,000, particularly with the near 100% certainty (depending on data) that the Fed will cut rates in September, and possibly again later in the year.

Investment bank analysts at Goldman Sachs point out that emerging market countries are continuing to buy gold – with purchases tripling since the middle of 2022 amid fears of U.S. financial sanctions and a mountain of sovereign debt.

China is weighing on crude oil and copper prices. Its weak real estate sector provides only limited upside for steel, which presents challenges for iron ore prices. But this “winter season” cannot last forever. According to BHP’s CEO, we could start to see a turnaround in China’s real estate sector within the next 12 months.

Analysts at Goldman expect copper to average about $10,100 per metric ton in 2025, well above this year’s average of $9,231.

Goldman’s view long term is that metals important for the energy transition away from fossil fuels, such as copper, will ultimately reach scarcity pricing as demand grows, investment declines, and inventories fall.

Recommendation: Scale into gold and silver stocks on down days over the next eight weeks, particularly if you have no holdings in this sector.

You should be looking at (GLD), (GDX), (WPM), (SLV), (GOLD), & (NEM).

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If you have good profits from any LEAPS recommended earlier this year or last year, consider taking profits.

QI CORNER

Cheers

Jacquie

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