Ongoing Economic Risks Sends Gold Prices Soaring to Six-Year Highs

Ongoing economic risks are sending precious metals considerably higher. At the time of this writing, gold was trading at $1,551.80 an ounce; up 20.7% year-to-date and at its highest levels since April 2013. Silver prices have also been on a tear, up 16.7% this year at $18.50 an ounce.

What’s juicing precious metal prices? Gold and silver are safe-haven investments during times of economic uncertainty. That means investors add gold and silver to their portfolio to limit potential losses during a market correction.

What Are Some Global Economic Issues?

There is a lot of uncertainty out there right now, from the U.S./China trade war and fears of a global recession. Here in Canada, gold and silver are being boosted by our own challenges with China, the economy, and the Bank of Canada.

First, the U.S./China trade war, which has now entered its second year, is having a material impact on the global economy. President Trump has said that trade wars are easy to win, but they aren’t.

The U.S. economy, the largest in the world, is showing signs of slowing down and the country could slip into a recession as Americans gear up to vote in late 2020. China, the world’s second biggest economy, is growing at its slowest pace in more than 15 years.

Three of Europe’s largest economies are most likely already in a recession. This includes Germany, Italy, and the U.K. This could spell disaster for the Eurozone, the largest economic block in the world.

Can’t central banks just implement the same kind of monetary policies they did during the 2008 financial crisis to stave off a recession? Not this time around. Already low interest rates, rising debt levels, and uncertain trade-policies mean central banks don’t have the same kind of ammunition they did. All of which suggests that central banks could be powerless when it comes to preventing a global recession.

What Are Some Canadian Economic Challenges?

Because of economic challenges in Canada, investors are flocking to gold and silver. China may be busy with the U.S., but not so busy that it cannot put a big dent in the Canadian economy. The Canadian government detained Huawei CFO Meng Wanzhou last year on behalf of the U.S., who accused her of violating U.S. sanctions on Iran. On an economic front, China retaliated by stopping all purchases of Canadian beef, pork, soybeans, and canola.

At a time when central banks, including the U.S. Federal Reserve, are lowering their key lending rates, the Bank of Canada has been holding steady. This suggests the Canadian economy is doing well. But the economy only appears to be doing well because of the strong housing sector.

Holding interest rates pat while other central banks are lowering theirs could send the Canadian dollar higher, which isn’t exactly good for trade. Especially in light of the weak energy sector.

What if the Bank of Canada lowers rates? This move will make borrowing even cheaper, which could add even more fuel to the Canadian housing market, which is already viewed as being some of the most overvalued in the world.

Learn-To-Trade.com, Canada’s Leader in Stock Market Trading Courses

Economic uncertainty, both in Canada and around the world, has sent gold and silver prices soaring and easily outperforming the broader markets. Gold is at levels not seen since 2013 and silver is at its highest levels in two years. This suggests investors are nervous and afraid a correction is around the corner. It doesn’t mean investors should run for the exits. The trading professionals at Learn-To-Trade.com can show you how to profit whether the markets are soaring, selling off, or trading sideways.

As Canada’s oldest and leading provider of stock market trading courses, the experts at Learn-To-Trade.com can teach investors of every skill level how to trade more confidently and profit more consistently.

Those who take our stock market trading course will learn how to read charts and conduct a thorough technical and fundamental analysis, read economic cycles, and spot market trends. They also learn about foreign markets, commodities and futures trading, stock index trading, forex, and cryptocurrencies. We’ll also teach you about risk management and capital preservation.

At Learn-To-Trade.com, we understand that investors have different needs, that’s why we provide a unique, Lifetime Membership that allows you to re-attend any part of the program as often as you’d like.

To learn more about Learn-To-Trade.com’s stock market trading course, contact us at 416-510-5560 or by e-mail at info@learn-to-trade.com.

Photo credit: iStock.com/Olivier Le Moal

The following two tabs change content below.
George Karpouzis is the co-founder of Learn-to-Trade and has been personally providing education and mentoring to over 3000 members since 1999. George has been trading in the stocks, options, futures and forex markets using technical analysis since 1986. With the help of advancements in trading technology the Learn To Trade program is now accessible worldwide. His background and passion for teaching brings an invaluable asset to our members. George is constantly striving to improve the program content and develop new strategic relationships for the benefit of the members. Add me to your G+

Testimonial 1

Don’t hesitate jump into it right now. You will be glad you did!

Susan C

Learn To Trade
4.0
2014-08-19T04:45:40-04:00

Susan C

Don’t hesitate jump into it right now. You will be glad you did!

Testimonials 2

The ongoing support has been the reason for my success

Patrick L

Learn To Trade
4.0
2014-08-19T04:46:33-04:00

Patrick L

The ongoing support has been the reason for my success

Testimonial 3

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

Steven R

Learn To Trade
4.0
2014-08-20T02:56:18-04:00

Steven R

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

Joseph L

Learn To Trade
4.0
2014-08-20T10:36:37-04:00

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

Harley S

The course is amazing. Where were you 30 years ago?

Harley S

Learn To Trade
5.0
2014-08-20T10:37:39-04:00

Harley S

The course is amazing. Where were you 30 years ago?

Partick M

I learned the basics I needed to trade successfully.

Partick M

Learn To Trade
4.0
2014-08-20T10:38:34-04:00

Partick M

I learned the basics I needed to trade successfully.

Iouri G

I like making money. I’m very happy, so far so good

Iouri G

Learn To Trade
4.0
2014-08-20T10:39:27-04:00

Iouri G

I like making money. I’m very happy, so far so good

Akos B

I learned things it would have taken me years to figure out

Akos B

Learn To Trade
5.0
2014-08-20T10:40:05-04:00

Akos B

I learned things it would have taken me years to figure out

Robert B

There is always someone ready to answer my questions.

Robert B

Learn To Trade
4.0
2014-08-20T10:40:59-04:00

Robert B

There is always someone ready to answer my questions.

Uldus V

I was impressed with the course’s professionalism and enthusiasm.

Uldus V

Learn To Trade
5.0
2014-08-20T10:41:40-04:00

Uldus V

I was impressed with the course’s professionalism and enthusiasm.

Dean K

I wish I knew about trading as a business years ago!

Dean K

Learn To Trade
4.0
2014-08-20T10:42:24-04:00

Dean K

I wish I knew about trading as a business years ago!

Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

Peter P

Learn To Trade
4.0
2014-08-20T10:42:57-04:00

Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

Shelley P

Learn To Trade
5.0
2014-08-20T10:34:39-04:00

Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

Amir

Hi George,

I just wanted to thank you again for the amazing work on the tutorials especially Options trading.   Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!

Amir

Learn To Trade
5.0
2016-10-07T08:56:52-04:00

Amir

Hi George, I just wanted to thank you again for the amazing work on the tutorials especially Options trading.   Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!

Linda S

It is so fun! It is like playing Chess for me. Readjusting my position/move as market reacts. He really enjoying it now (he said it is like going to candy store for him as there are so many options to pick for option strategy). He thinks he can make 100% return. We both really appreciate your program and your teaching! We would not able to trade in less than 2mths if it wasn't for your program!

Linda S

Learn To Trade
5.0
2019-09-04T14:23:05-04:00

Linda S

It is so fun! It is like playing Chess for me. Readjusting my position/move as market reacts. He really enjoying it now (he said it is like going to candy store for him as there are so many options to pick for option strategy). He thinks he can make 100% return. We both really appreciate your program and your teaching! We would not able to trade in less than 2mths if it wasn't for your program!
4.4
15