Saturday, September 22nd, 2018 MST

Stocks move higher, so do the metals

Over the last two weeks, the Dow Industrials rose eight of the ten sessions, tacking on more than 800 points for a 3.2% increase and spreading optimism that the bull market is back on track.  The Dow hit two records highs this week.

According to  the Wall Street Journal, investors seems less concerned about the developing trade war between the US and China.  However, Monday a 10% tariff will be imposed on $200 billion of Chinese imports, and the tariff is set to increase to 25% at year end, which begs the question: Will the Chinese retaliate?  Trump is on record for saying that if the Chinese impose tariffs on US exports to China, he will slap still more tariffs on Chinese goods sold in the US.

$1300 gold forecast by year end

Morgan Stanley, a longtime establishment investment house, recently released a report on gold that stated: “We rarely use gold in our asset allocation, but occasionally there are opportunities and currently we see one of them.”  Morgan Stanley & Co.’s global commodity strategist has a $1,300 per ounce price target on gold by year end.

Reasons to buy silver

As silver continues to touch new lows, bearish reports abound.  One called it the worst investment ever.  Really? The reasons to buy silver lie neither in the metal itself nor its many industrial and medical applications.  Silver should be bought because it — along with gold – has for millennia been proven to be safe