Investors tap them for precious-metal gains

Article Excerpt

Investors saw gold jump over $1,500 U.S. an ounce in Au-gust 2019 for the first time in six years. The leap was in anticipation of an interest rate cut by the U.S. Federal Reserve. That cut did, in fact, happen. In the months since, the price of gold has dropped a bit, to $1,474 an ounce, but we believe more gains lie ahead for you. Rate cuts typically lower the U.S. dollar and spur infla-tion. Both of those are generally needed to significantly boost demand for gold and silver and further push up their prices—and the prices of related mining stocks. We don’t see precious metals as essential for a sound portfolio. But if inflation rises, gold and gold stocks will attract new interest. As well, if the world economy continues to expand, par-ticularly in emerging economies where gold is seen as a way to store wealth, consumer purchases of gold jewellery and other items will rise. That could help to lift gold…