In a bumpy week for gold trading, the precious metal edged slightly higher for the second consecutive week, with most of the gains coming from the days leading up to the much anticipated Fed meeting minutes. As soon as the minutes were released online Wednesday, gold futures for December delivery were so volatile, prices ranged from $1,340.50 to $1,352.60 per ounce within the span of about two minutes.

Among other things, this powerful reaction to the details of the meeting displays the Federal Reserves impact on the gold market, because traders and investors are looking to dissect every last word of the meeting in hopes of gaining clarity on rate hike timing.

The minutes very clearly showed that Fed policy makers are not willing to raise rates until they are fully in agreement on the outlook of the US economy. Naturally, the idea of Fed officials not wanting to damage the economy by raising rates prematurely is beneficial for gold, so prices rapidly recovered from the initial sell-off to $1,340.50.

The minutes also showed that many Fed officials want to hold off on a rate hike until they see further signs of economic growth and inflation. Jim Steel, an analyst at HSBC, noted the longer the Fed delays a rate rise, the better for gold.

Besides the fact that low interest rates are generally thought to be favorable to gold, the idea that the US economy may not be as robust as it seems could have also contributed to the intraday rally.

Nevertheless, gold managed to lose some steam and didnt finish the week as strong as many analysts expected. Gold has traded between $1,360 and $1,340 per ounce for the last three weeks with the exception of three days where it broke above $1,360, but this was evidently not sustained.

Markets across the board are famously quiet this time of year, so volume is light and liquidity is often scarce. Therefore, rapid, knee-jerk like reactions (like after the release of Fed meeting minutes) are to be expected since there is limited market depth to absorb large buy or sell orders.

Comments from New York Fed President William Dudley and San Francisco Fed President John Williams spurred a minor sell-off for gold on Friday. Since there is not a significant amount of economic date coming out, investors are observing Fed officials very closely for any cues on interest rates. The slightest comment that vaguely hints at when or if a rate hike might occur can have shockingly dramatic impacts on gold.

With that said, investors should buckle up. In the coming week, Fed Chair Janet Yellen (along with a host of other central bankers)will be speaking at the annual Jackson Hole Monetary Policy Conference on Aug 26^th. For an event that only occurs once a year, and with Fed officials who are clearly timid about the US economy, the impact on gold should be dramatichopefully to the upside.

Safe havens for cash are quietly disappearing, under new rules for money market funds that go into effect October 14, 2016–just two months away.

Redemption fees and restrictions on fund withdrawals will make prime money funds less attractive to investors who want ready access to their cash during periods of high market risk. Many will look toward gold as a more liquid alternative and a historically strong store of value.

The new rules have already had an impact on the money market fund landscape. Tax-free institutional money funds have started to disappear from the market. According to iMoneyNet, the number of tax-free institutional funds is down from 95 in July 2014 (the month when the new rules were announced) to just 38 this past June.

Fund companies have had two years to prepare for these changes, and many have already changed their money fund lineup in advance of the new rules.

Lets look at these primary changes that are coming this October, and how the simple diversification into a gold position could alleviate the growing risks involved in your cash positioning

Redemption restrictions

Starting that day, prime money funds–defined as those that invest in corporate and municipal bonds along with government and agency debt–will be permitted to enact temporary withdrawal restrictions or charge fees for fund redemptions in times of market stress.

The purpose of this rule is to prevent a run on a money market fund similar to the one that crippled The Reserve Fund during the 2008 financial market crisis.

Money market funds have traditionally been used as a safe haven for investor cash and to provide ready liquidity should investors need to make withdrawals.

The new redemption fees and withdrawal restrictions mean investors may not be easily able to access their funds when they may need them most.

Fee and withdrawal restriction rules apply to both retail and institutional prime money funds. Those money funds that invest exclusively in government and government agency debt (known as non-prime or government money market funds) are exempt from this rule.

Floating NAVs

Another significant change coming this October is floating net asset values (NAV) for certain money funds. Historically, money funds strive to maintain a per-share price of $1 to provide capital preservation for investor deposits. It was never guaranteed that money funds would maintain stable net asset values. But all money funds sought to avoid breaking the buck to preserve investor confidence.

Under the new rules, prime institutional money funds (those that cater to large investors and invest in corporate and municipal securities) will have to allow their net asset values to float or fluctuate in value. Thats a significant change from the traditional objective of stable value that these funds have long sought to achieve.

Gold is a traditional holding of true wealth holders and comes under no threat of government rules change. Controlled by you, the investor, gold allows you real freedom to control your wealth management and is a growing advantage desired in this turbulent financial age.

How bad can a fund run be?

Weve already seen how devastating a run on the money market fund can be to investors. A run may start small, but redemptions can cascade and create an avalanche that leaves existing shareholder to wonder how their stable money fund suddenly became unstable.

Thats what happened in September 2008 to The Reserve Fund, one of the oldest and largest money funds in the marketplace. The Fund held about $800 million in Lehman Brothers securities when the investment bank went belly-up. That investment represented around 1% of the total fund assets.

But when that $800 million dropped to zero due to Lehmans bankruptcy, it was enough for the The Reserve Fund to break the buck and trigger a shareholder stampede for the exits. $40 billion of the funds $62 billion in assets was gone by the day after the Lehman collapse. The Reserve Fund halted withdrawals for seven days, then eventually cashed out the remaining shareholders at 99 cents per share.

Money funds will soon be able to slow redemptions and control future runs on their assets. But money fund investors will bear much of the burden, either through redemption fees that reduce the value of their cash holdings or withdrawal restrictions that prevent ready access to capital.

Thats why gold may become more appealing to investors look for an alternative to money market funds for their cash. Gold can be easily and readily sold in the marketplace, providing adequate liquidity when investors need cash. Plus, gold has traditionally been a strong store of value over the long term (although values fluctuate often within short-term periods.)

A new money fund world

If you currently have cash in a money market fund or are considering a money fund as a stable value alternative, do your homework first to understand how these new rules affect fund pricing and redemptions. And remember, gold is an excellent store of value and offers readily liquidity in all market environments.

Founded in 1975,Blanchard and Companyhas been the premier source for clients who invest in precious metals and rare coins. To join the more than 450,000 clients already investing wisely, give us a call today.

Gold prices are up 25% for the year-to-date through August 8th. Thats better performance than most major asset classes have turned in so far this year.

After this torrid run, you might expect professional investors to cool on the precious metal. Instead, love for gold continues to burn brightly for some leading money managers.

Two prominent U.S. managers recently made separate but similarly dramatic announcements about gold — forget about nearly all other asset classes and turn your attention to gold.

Thats exactly how I feel sell everything. Nothing here looks good. That was Jeffrey Gundlach, chief executive of DoubleLine Capital, quoted in a July 30 article on Reuters. Gundlach believes in an upside for gold and sees prices continuing to rise to $1,400 per ounce. His firm continues to own gold and gold mining stocks in their portfolios.

Then theres Bill Gross, renown fixed income investor and manager of the Janus Global Unconstrained Bond strategy. I don’t like bonds; I don’t like most stocks; I don’t like private equity, he wrote in his August 2016 monthly commentary. Real assets such as land, gold, and tangible plant and equipment at a discount are favored asset categories.

Why are these two leading money managers so enamored of gold right now? Its what they and many other professional investors see in the current market environment–too many risks and not enough return to reward investment.

The twin forces of higher risks and lower returns create ideal conditions for gold prices to continue their upward trajectory. Among the higher risks are:

Elevated valuations — Major indexes like the S&P 500 are in record territory but earnings growth for S&P 500 companies is on the decline. For companies that have reported 2nd Quarter earnings so far, FactSet reports earnings growth is down -3.5%.

Stocks appear to be overvalued at current market levels. Higher prices and lower earnings means the current P/E ratio for the S&P 500 remains above its 5- and 10-year averages.

Weak global growth — U.S. economic growth has been at or below 2% for four consecutive quarters, with the annualized rate for Q2 2016 coming in at 1.2%. The current U.S. economic recovery has been notably weak, but things are better here than in other parts of the world: quarterly GDP in the Euro-area has been below 1.0% for two years, while quarterly GDP in Japan has flip-flopped between growth and contraction over the past year.

Theres reason to be optimistic about future economic growth in the U.S. with continuing strength in the job market. The improving outlook may give the Federal Reserve the green light to resume interest rate hikes later this year.

But the investment markets dont seem to share the same view. According to the Fed funds futures market, odds that the Fed raises rates at all by its December meeting at not even at 50% as of August 8. That means many market pros expect sluggish worldwide trends to persist, enough to keep the U.S. central bank on the sidelines for the rest of the year.

Political uncertainty — Earlier this year, political dark clouds gathered over Britain and Europe with the results of the Brexit vote and the U.K.s decision to depart the European Union. Concern is spreading that copycat breakaway movements will emerge in other E.U. countries and weaken economic growth on the continent.

But uncertainty also darkens the outlook for the worlds one shining beacon of optimism, the United States. The current presidential campaign has been one of the most contentious in history. And Election Day is still three months down the road. Gold should continue to shine as the level of anxiety increases.

Higher risks would be fine if investors see prospects for returns equal to the risks. But thats far from the current situation. Many money managers expect low returns for the foreseeable future. Here are a few reasons:

Low bond yields — Fixed income investors continue to be squeezed by historically low rates on bonds. While U.S. government bond yields seem to have found a floor of support as of late, yields on U.K. government bonds have dipped following Bank of England interest rate cuts, and yields on many Japanese and Eurozone bonds are negative.

Many market watchers are focused on negative government bond yields, for good reason. The amount of global government bonds yielding less than zero continues to grow. The World Gold Council (WGC) sees around 40% of global developed market debt with negative yields.

Much of the outstanding government debt is in the hands of global central banks, leaving less for fixed income investors. WGC also estimates that for global government bonds with yields above 1%, only 17% is available to investors.

Stock market vulnerability — Stock investors have seen multiple market shocks in the last 12 months, from last Augusts currency devaluation in China to the Brexit vote in the U.K. this past June. Many investors see these short downturns and sharp rebounds as part of the new normal in the global financial markets.

With stocks hovering at record highs, the possibility of future market shocks and continued volatility will grow. Stock analysts are tempering their expectations for returns in the second half of 2016, based primarily on these heightened risks. Equity performance may still come out on the positive side, but many professional investors believe gains will be harder to come by in the next few months.

All of these factors make gold more attractive in the eyes of money managers — not only for its traditional safe haven status in times of economic stress, but also as an asset class with the potential to provide growth for investors.

Founded in 1975, Blanchard and Company has been the premier source for clients who invest in precious metals and rare coins. To join the more than 450,000 clients already investing wisely, give us a call today.

Morgan dollars have been popular among rare coin collectors over the years. Investors continue to find value in the late 19^th and early 20^thcentury silver dollars when pricing them at auction.

A 1882 Morgan dollar with a rare grade of MS-66+ by PCGS recently fetched $9,900 at a July auction.

Morgan dollars attract the interest of collectors and investors because of their large size, distinctive design, and different variations. They are ideal for collectors looking to build sets, with four different obverse and reverse designs and five different mint marks.

These coins have an interesting history behind them as well. They were at the center of a long back-and-forth battle in the late 19^th Century between silver interests and those who backed a single gold standard for the U.S.

Morgan dollars emerged as a response to the Coinage Act of 1873, which effectively ended silver dollars as legal U.S. tender. Around that time, the price of silver was low due a glut in supply from newly discovered mines in Nevada. Silver producers could take bullion to a mint to have coins produced for a small fee, and profited when the price of the silver bullion was lower than the value of the coin.

Increased circulation of silver dollars challenged the standing bimetallist policy of both gold and silver as accepted legal tender in the U.S. The Coinage Act of 1873 effectively (although perhaps not intentionally) ended that challenge and placed the U.S. firmly on the gold standard. That position would last into the early 20^th Century.

But different business and regional interest groupsfrom silver mining companies in the West, to farmers in the Midwestremained supportive of the bimetallist policy. They wanted to re-introduce silver dollars as a means of promoting economic prosperity during the long recession of the 1870s.

Eventually, lawmakers from Midwestern states drafted legislation that would bring back silver dollars as legal U.S. tender. President Rutherford B. Hayes vetoed the bill when it landed on his desk, fearing a surge in inflation that would hurt businesses, but his veto was overridden and the Bland-Allison Act became law.

The Bland-Allison Act committed the U.S. Treasury to monthly purchases of silver bullion to mint into silver dollarsthese became the Morgan dollars, named after the coins designer, George T. Morgan. The Bland-Allison Act was repealed two years later by the Sherman Silver Purchase Act, which sought to end silver dollar production within one year. That law was repealed as well.

Production of silver Morgan dollars continued between 1878 and 1904. In 1898, another law directed the Treasury to mint the remaining silver purchased by the Sherman Act into silver dollars. Once that inventory of silver was depleted, Morgan dollars would no longer be minted (although a one-time mintage in 1921 did occur.)

These silver dollars never gained widespread acceptance as currency at the time, and banks discouraged their use. Millions of Morgan dollars never saw the light of day, remaining out of circulation and locked in vaults at the U.S. Treasury for many decades.

These dollars were eventually released for sale during the 1960s and 1970s. At the time, the release of these uncirculated Morgan dollars depressed the values of those specimens that were in collectors hands.

Morgan dollars are often available at auctions today for investors and collectors looking to build sets of different Morgan dollar varieties. Especially for those rare specimens in top condition, their current values make them worthy of consideration for serious investors and collectors.

Trusted by both experienced investors and those just starting out, Blanchardprovides expert consultation in the acquisition of bullion and American numismatic rarities. Give us a call today.

Gold prices have risen strongly in 2016, appreciating around $300 per ounce since the start of the year. Gold demand has risen along with gold prices this year. In Q1, gold demand reached nearly 1,300 tonnes according to World Gold Council data, a 21% increase over the same quarter last year.

Nearly half of that demand (47.8%) came from the investment markets. And much of that demand was driven by exchange-traded funds. In the first quarter, gold demand from ETFs topped 363 tonnes, representing more than 28% of the total demand for the quarter.

An article in Barrons August 1 edition noted the success of gold ETFs have booked so far in 2016. (See Gold ETFs Wont Lose Their Luster This Year.) Globally, gold ETFs hold over 2100 tonnes of the precious metal. One ETFSPDR Gold Shares, marketed by State Street Global Marketsholds 43% of that gold.

The Barrons article states that the popularity of gold ETFs since 2011 (measured by fund flows) have mostly overlapped with the increase in gold prices during that time. Whether ETF flows are driving gold prices or merely following them is hotly debated. In reality, both claims can be true, depending on market conditions.

In the current economic climate, market conditions appear to be the primary driver behind the rising interest in gold among investors. Investors typically turn to gold as a store of value when interest rates decline or inflation rises. Right now, both forces seem to moving in a way that would help support a continued rise gold prices.

First, its well documented in the financial press that interest rates around the globe are on the downswing this year. Most notably, longer-term government bonds in Japan, Germany, France, Switzerland and other advanced economies have dipped into negative territory.

This is significant because global financial markets have never been here before. Negative interest rates have existed only in theory before, in the realm of economic textbooks. The outcome of these negative interest rate policies is largely uncertain, even among economists and market experts.

Ultimately, low and negative interest rates discourage saving. There is no incentive to keep money in a savings account if youre paying a bank for the privilege to do so. When savers dont earn anything on their deposits, they look elsewhere for a stronger store of value. And gold has traditionally fit the bill.

Then theres inflation. Throughout much of the current economic recovery, inflation has been mild and even non-existent. This was especially true in 2015, when declining oil prices reduced inflation to its lowest levels since the preceding recession.

The story has been much different in 2016. Oil prices have risen, giving inflation rates a jolt consumers have not seen since 2014. The core inflation ratewhich excludes volatile energy priceshas been above 2% for the past eight months, a trend not seen in at least four years.

The combined forces of low interest rates and higher inflation will put a continued squeeze on savers. Not only will they earn next to nothing on their deposits at near-zero yields, the little they do earn may be reduced further by higher inflation. In this scenario, gold will remain an attractive alternative for investors.

Is there potential for this situation to reverse? At the recent Federal Open Market Committee meeting on July 27, the Federal Reserve opened the door to a Fed rate hike later this year. As of this writing, the markets seem to expect rates to rise between 25-50 basis points at the Feds next meeting in September.

But on a global level, rates appear to be moving in the other direction. Australias central bank lowered rates to a record low of 1.5% on August 2nd. And last week, the Bank of Englanddropped their already-low rate to 0.25% in an attempt to resuscitate the U.K. stalling economy in the wake of the Brexit vote.

Even if interest rates rise in the U.S. later this year, inflation may also tick higher and continue to squeeze real returns for savers. Tighter labor markets have led to an increase in wages for U.S. workers this year. And it appears that these workers are spending their higher wages tooconsumer spending remained robust in Q2 and was the only factor contributing to the tepid pace of economic growth in the 2nd Quarter as well.

Higher wages and greater spending generally place upward pressure on inflation. So its likely savers will continue to feel the pinch from low real rates of return. That should help gold maintain its attractiveness to investors and keep gold demand and prices elevated.

Blanchardhas helped more than 450,000 investors with expert consultation in the acquisition of bullion and American numismatic rarities. Every day, new and experienced investors alike join with Blanchard to manage and protect their wealth.

If you want to invest in gold, gold coins are a great choice. Coins are easy to transport, have lower fees than gold bars, and are beautiful to collect and look at. However, before you buy any gold coins, you should understand the investing basics so you can make the right decisions for your portfolio.

Bullion gold coins

There are two main categories of gold coins. First, there are bullion gold coins. These coins are currently being minted by the governments of countries. Some common bullion coins include the American Eagle, the Canadian Maple Leaf, and the South African Krugerrand. Every bullion gold coin is standardized to have the exact same purity so know what you are buying. In other words, every American Gold Eagle 1 oz. coin will be exactly the same. Bullion coins also track the value of the spot price of gold. These coins are like a straight investment in gold.

Rare gold coins

Rare gold coins are more like collectibles, like buying artwork. These coins can sell at a higher price than regular bullion coins because they are rare collectibles on top of being gold. However, buying rare gold coins can be more difficult because these coins are not standardized. You really need to do your research to make sure that the rare coin actually delivers what it promises. For example two old coins might have the same name but have different gold purity because standards were less strict hundreds of years ago. Physical problems like dents and scratches can also make rare coins less valuable.

One way to stay safe is to only work with dealers that are part of the Professional Numismatists Guild or the American NumismaticAssociation. These associations review rare gold coin dealers and make sure they deliver quality results to their investors.

Picking your first gold coin

If you are new to buying gold coins, you are best off starting with bullion coins versus rare coins. Bullion coins are safer investments, take less research, and are easier to sell. As you grow your portfolio and get more experience with gold, you can comfortably expand to rare coins.

If you are in the United States, it is also better to stick with North American coins like the American Gold Eagle or the Canadian Maple Leaf. There is more demand for these in the United States so it is easier to buy and sell these coins. Another advantage is that you can store American Gold Eagles and Canadian Maple Leaf coins in an IRA, a tax-advantaged retirement account. Additionally, country coins such as the Austrian Philharmonic and Australian Nugget can further support your investment strategy.

Finally, when you decide on the size of your coins, bigger is usually a better choice because your overall fees will be lower. Dealers charge a per coin fee so you would end up paying more in fees to buy four ounce gold coins rather than one 1 ounce coin.

Finding a dealer

To buy gold coins, you need to buy from a gold dealer. The government does not directly sell to individual investors. When you compare gold dealers, costs are a big concern as each dealer can charge a different fee over the actual price of the coin. Average fees are about 4% to 5% over the spot price of gold. In other words, if the spot price of an ounce of gold is $1,300, the fee for buying a one ounce gold coin should be $52 to $65. A lower fee is better for your investment return.

However, you should consider more than fees for your decision. A dealers reputation is also extremely important because there are some dishonest companies out there that over charge or even defraud investors. You should check to see how long a dealer has been in business and whether they have good customer reviews. Blanchard has helped more than 450,000 investors to date with expert consultation in the acquisition of bullion and American numismatic rarities, and makes a great choice for a first time investor. You should also watch out for dealers that promise free storage or delayed delivery because these are signs of a scam.

Payment and delivery

Many gold dealers only accept payments in cash and advanced payment is required. Typically, you can expect to receive your shipment within 10-14 day, via regular mail. A sudden surge in demand may have an impact on availability, so it is best to keep this possibility in mind. You should ask your dealer about their current inventory and average delivery times before you make a purchase.

Storing your gold coins

You need to keep your gold coins in a safe place where they are protected against theft, fire, or other problems. A bank safety deposit is a solid choice. You could also set up a safe at home, in order to keep your coins adequately protected.

While a gold dealer can store your gold, this is usually not advantageous for gold coins. Dealer storage fees are high and the traditionally small size of coins makes them easy to keep within your financial institution. Wherever you store your coins, you should buy insurance to protect them against theft. The bank does not provide this insurance for you.

Thinking of investing? Have questions? Blanchard has helped more than 450,000 investors to date with expert consultation in the acquisition of bullion and American numismatic rarities, and makes a great choice for a first time investor.

Proof coins are valuable to investors and collectors because they are the first specimens of a mintage and often have unique and distinguishing characteristics that make them valuable and highly desirable.

But even among high-quality proof coins, there are subtle differences that can affect their value and collectability. When looking to purchase proof coins as an investment or to add them to an existing collection, its crucial to understand how the grading system in distinguishing high-quality proof coins.

As a case in point, lets look at this 1875 Trade dollar that was recently purchased at a July auction for $25,000. It was listed at the time of auction with a proof grade of 67.

Proof coins are graded on a 70-point scale, but only those coins with a grade of 60 or higher are considered worthy of investment. Youll often see this number grade in the coins description with a PF or PR, which stands for proof.

At the top grade of 70 are proof coins of perfection. No flaws can be seen even at 5x magnification. These coins represent the best strikes of the mintage and are the most valuable proof specimens to own.

Naturally, the quality and value of the proof coins decreases as you go down the scale. The differences between the grades are often based on common qualities for imperfections, strike and wear.

Imperfections Flaws will be barely perceptible at higher grades, but gradually become more visible as you go down the scale. At PF-64 and below, imperfections become more obvious to the naked eye.

Strike How strong was the imprint at the time of stamping? Proof grades above 65 are generally considered to be well struck. At 64 and lower, strike quality is judged to be average.

Wear The highest investment-grade proofs should have no signs of wear, indicating they were kept out of circulation. Any sign of wear drops the proof grade below 60 and reduces its potential value.

The creator of the original 70-point scale was William H. Sheldon, a psychologist by profession but a fervent numismatist whose lasting contribution to the coin world is the foundation of todays grading system.

It was Sheldons classification system that deemed any grade above 60 as mint state, to identify coins that had been withheld from general circulation and preserved for their investable value.

Sheldons grading system was adapted by the two leading coin-grading firms, Numismatic Guaranty Corporation (NGC) and Professional Coin Grading Service (PCGS). Both firms interpret Sheldons original scale with slight differences. Therefore, you may see different proof grades for the same coin, based on which firm issued the rating.

That was the case for the 1875 Trade dollar sold at the July auction. The PF-67 grade was issued by NGC in 2016. But the previous year, PCGS gave the same coin a 66 grade.

Whats interesting is that the Trade dollar was purchased at a lower price this year even though it had a higher grade. In 2015, the same coin was sold at auction for over $28,000.

Sometimes grades arent everythingmarket sentiment can often play a bigger role in determining a coins value. Moreover, the grading system is subjective after all, with a strong human element at work.

But the grading scale can be an important tool for investors and collectors, to help them understand the quality of the coins they are considering for purchase and the value they can add to their overall holdings.

Golds allure has been strong as of late. Prices for the precious metal are up 20% over the last year. Meanwhile, U.S. stocks and bonds have eked out only meager single-digit gains during the same period.

There are many signs indicating that the bull market for gold has plenty of room to run. The recent climb in gold prices was driven in part by economic uncertainty around the world, and terror threats in global hotspots.

There are, however, also good economic fundamentals behind golds strong performance. Demand for gold right now is as healthy as it has been for many years. Its a lesson straight from the pages of an Economics 101 textbook: Prices rise when demand increases.

Demand for gold surged by 21% in the first quarter of 2016, according to a World Gold Council report in May. That was the second-strongest quarter of demand growth for gold on record.

Much of this robust demand is coming from the investment markets. The World Gold Council also reported that investor demand for gold in Q1 of 2016 reached 617.6 tonnes nearly as much as the previous three quarters combined.

Over half of that demand is coming from exchange-traded funds (ETFs). Inflows to gold ETFs reached a seven-year high in the first quarter. The last time investor interest in gold hit these levels was at the tail end of the global financial crisis and recession in 2009.

What factors are driving the demand for gold and creating favorable conditions for the gold bull market to continue?

The lingering uncertainty of Brexit: It is hard to say with any certainty how the United Kingdom and the European Union will fare in a post-Brexit world. Most economists have said leaving the EU will likely cause a slowdown in the UK economy over the short term. Only the severity of the looming recession is up for debate.

But the long-term consequences of the UK vote to leave the EU will be sorted out over the next few years. Much will depend on Britains ability to negotiate with its EU partners as the Brexit process continues. Thats leaving many investors with a sense of trepidation about investing in global markets.

Gold has benefited from ongoing currency fluctuations in the wake of Brexit. Many analysts in the foreign-exchange markets believe those swings will continue. That gives gold the potential to ride these favorable waves for some time to come.

Unrest on the global stage: Last months Brexit surprise was the headline event that bumped up gold prices. But other recent global events also played a part, including terror attacks in Orlando, Fla., and Nice, France, and a failed coup in Turkey (a major player in the gold market).

Global turmoil and threats of terrorism heighten investor concerns about the future. The increased perception of danger and uncertainty drives a flight to safety away from currency and equity markets and into the relative safe harbor of gold.

In light of recent events, it seems these extreme acts of violence will become part of the new norm. These heightened risks to security will continue to draw investors to gold.

Lack of confidence in global central banks: The Federal Reserve played a major role in rescuing the U.S. economy during the 2008 financial crisis. But saving the day came at a heavy cost: Bond yields fell to historically low levels, bond-market risk increased with the run-up in prices, and fixed-income investors found few options for cash flow at a positive real rate of return.

Now, global central banks are following the Feds playbook for jump-starting their own sluggish economies. The European Central Bank and the Bank of Japan are doing brisk business in the bond market. As a consequence, yields in global bond markets are falling too.

Rates for 10-year German and Japanese government bond are negative. So are yields on 30-year Swiss government bonds.

These negative-interest-rate policies at global central banks havent had their intended effect yet. Meanwhile, global investors are running out of options for growth, so gold may keep its shiny luster while these central banks continue to fight their uphill battles.

The time remains right for gold.

Market momentum is with gold investors right now. The conditions that make gold attractive as an asset class slowing economic growth and geopolitical uncertainty are likely to be with us for the next few months, if not the next few years.

The recent price surge shouldnt deter investors from considering an increase or addition to their gold allocation. Theres still room for the gold bull market to run.

Gold futures for August delivery declined on Friday by 0.67% to cap the second consecutive week of losses for the precious metal. As gold closed down on the day for Friday, the final price traded on the CME was $1,322.10, which is undeniably indicative of support above the $1,300 price-level.

Michael Armbruster, the co-founder at Altavest noted how it appears gold is finding support just above the $1,300 level just as the stock markets rally looks like it is getting tired. When the equity market eventually starts to pullback, he advised clients to look for gold to ignite again to the upside.

Until then, many analysts attribute the weekly decline to profit-taking and the closing out of bullish positions, especially after such an extended period of solid gains. Another possible, and arguably more likely, explanation for the recent decline in gold stems from easing global equity market fears. Throughout periods of low volatility, the demand for safe haven and risk-averse assets (like gold) diminishes, so declining prices are somewhat tacit.

Looking across the board, stocks are at record highs and volatility is nearing a record low, so if there is one takeaway from the overall market, its that there is simply no current fear amongst investors. And gold owners should see this as positive, since gold prices are, oddly, remaining strong despite a monumental decline in volatility in the wake of last months Brexit decision.

Furthermore, the July gold sell-off should not come as a complete surprise not only because of current low volatility, but also because of past events. Historically, gold has ritualistically sold- off for a few weeks throughout almost every July since the financial crisis of 2008. For July of 2014 and 2015, gold futures lost 4.97% and 8.83%, respectively.

Diminished liquidity as a result of increased legislature preventing banks from speculating on commodities, such as gold, likely contributes to the summer sell-offs, but the lack of current market fear and volatility seals the declining price deal.

Although gold prices have closed lower for two straight weeks, gold is still up roughly 25% year-to-date, which puts virtually every other asset class (like stocks and bonds) to shame.

In terms of recent market-moving events, the European Central Bank released an announcement last week regarding interest rates that was pretty vague and ambiguous as to when the next rate adjustment will occur. The tone and content of the message indicated that future rate hikes are by no means out of the realm of possibilities, so this could also have also contributed to golds decline.

With the historical aspect of July gold trading and current low volatility in equity markets, the subtle weekly decline for gold seems explicable. Going into the week of July 25^th, the only potential gold-moving event is a Bank of Japan announcement on Thursday, but there are many more economic events to kick off the month of August that are likely to induce volatility and increase the desire for gold.

Want to learn more about investing in precious metals? We’ve got answers here.