There has been no shortage of talk about the ongoing global economic slowdown. It seems that there is a constant supply of fresh data suggesting that the slowdown is not only ongoing but could be accelerating. An ongoing slowdown, or even recession, should not come as a huge surprise at this point. The current expansion has gotten quite long in the tooth and began to falter as soon as the Fed tried to normalize monetary policy.
In what may be considered another shot across the bow, the copper market cannot get anything going to the upside. The market has been stuck in a trading range from $2.55 to $2.70 for some time now. The market has not only seen a lack of upside pressure despite supply issues, but it is looking increasingly vulnerable to a fresh decline in price.
As if the price weakness were not enough, copper supplies also appear to be building up in LME warehouses. The bottom line is that industries that use copper have been buying less of the metal. Although not a perfect indicator, this could potentially be another warning sign for some serious economic times ahead.
The poor performance for copper may also suggest that companies do not see things getting a lot better any time soon. Some of the primary issues that global markets are contending with include:
- The U.S. slowdown
- The Chinese slowdown
- Significant weakness in Germany and the EU
- Middle East tensions
- The ongoing trade war
The variety of economic and geopolitical issues not only makes the current slowdown likely to continue but could also put the global economy back into a full-blown recession.
The Fed and other central banks will do what they can to fight the recession, using lower rates and even fresh QE.
It may not be enough, however, and the next recession could be even deeper and longer than the last. Stocks may try to continue their ascent as rates go lower, but after a 10-year long bull market, the best gains have been had. Not only could stocks see a lack of further upside, but they could become more vulnerable to a significant sell-off.
That makes now the ideal time to diversify with asset classes that may potentially outperform during the next recession. Against the backdrop of lower rates, a weaker dollar, lower stocks and even higher inflation, there may be no better asset class to look to than gold. Don’t ignore another warning sign.
Adding this key asset class has never been easier, and perhaps never more important. Speak with an Advantage Gold account executive today about the potential benefits of gold ownership. Our associates are here to answer any questions you may have and can even show you how to build a significant allocation using an IRA account.
Don’t wait for the downturn to accelerate into a recession before acting. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: copper industries, copper market, lower rates, middle east tensions, ongoing slowdown, price weakness, trade war