Regal Assets Banner

Ready for the next financial crisis?

EVERYTHING YOU NEED
TO KNOW TO
INVEST IN GOLD
(TAX FREE WITHOUT ANY 
PENALTIES OR FEES)

ABOUT

Welcome investor.

We have a mission: to provide you with high-quality news and information about investing and finance whereas wise investment decisions can be made improving your risk management abilities. While we specialize in alternative asset investing, we also want to keep our news feed updated with financial informative feeds. Our goal is basically targeted at alternative investment strategies facilitating wealth preservation and retirement savings protection.

Go to News


Minimized RISK INVESTING

FREE Guides

US-Metals Investor Kit

download now

US-Crisis Currency Report

download now

US-Cryptos Investor Kit

download now


View Video Now…
(Click Image)

Bitcoin Price Surges to Record High After Tesla Announcement

The price of Bitcoin surged to an all-time high of $48,000, after Tesla, revealed that it had purchased $1.5 billion of the cryptocurrency. In its annual 10-K regulatory filing with the Securities and Exchange Commission (SEC), the electric automaker revealed that it had stockpiled Bitcoin as part of its investment strategy.

In the regulatory filing, Tesla divulged that it now held digital assets subject to market volatility:

“We hold and may acquire digital assets that may be subject to volatile market prices, impairment and unique risks of loss.

In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. As part of the policy, which was duly approved by the Audit Committee of our Board of Directors, we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future. Thereafter, we invested an aggregate of $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt.

The prices of digital assets have been in the past and may continue to be highly volatile, including as a result of various associated risks and uncertainties. For example, the prevalence of such assets is a relatively recent trend, and their long-term adoption by investors, consumers and businesses is unpredictable. Moreover, their lack of a physical form, their reliance on technology for their creation, existence and transactional validation and their decentralization may subject their integrity to the threat of malicious attacks and technological obsolescence. Finally, the extent to which securities laws or other regulations apply or may apply in the future to such assets is unclear and may change in the future. If we hold digital assets and their values decrease relative to our purchase prices, our financial condition may be harmed.

Moreover, digital assets are currently considered indefinite-lived intangible assets under applicable accounting rules, meaning that any decrease in their fair values below our carrying values for such assets at any time subsequent to their acquisition will require us to recognize impairment charges, whereas we may make no upward revisions for any market price increases until a sale, which may adversely affect our operating results in any period in which such impairment occurs. Moreover, there is no guarantee that future changes in GAAP will not require us to change the way we account for digital assets held by us.

Finally, as intangible assets without centralized issuers or governing bodies, digital assets have been, and may in the future be, subject to security breaches, cyberattacks or other malicious activities, as well as human errors or computer malfunctions that may result in the loss or destruction of private keys needed to access such assets. While we intend to take all reasonable measures to secure any digital assets, if such threats are realized or the measures or controls we create or implement to secure our digital assets fail, it could result in a partial or total misappropriation or loss of our digital assets, and our financial condition and operating results may be harmed.”

“Whether there is someone out there that would actually buy a Tesla with bitcoin now is another thing but this is a big move by the company. Some other companies may be tempted to follow but the vast majority will be far too cautious to expose themselves to the volatile world of cryptos. Musk isn’t one to shy away from bold moves though and has now put his money (well, Tesla’s) where his mouth is. Either way, it’s off to the moon we go,” stated Craig Erlam with foreign exchange firm OANDA.

This most recent news now begs the question how investors will view the electric automaker.

“I think one of the big issues we’ll see that many people had going into this was: Should I trade Tesla as a technology company? Should I treat Tesla as an automobile company? And I think now as a Bitcoin investment it changes how you look at Bitcoin itself in terms of where will this start fitting into the balance sheets of major corporations, as well as day-to-day life. How does their board, C-suite and large shareholders feel about this? It’ll be interesting to see all the parties that have a voice over the next few months, when they weigh-in, and if this philosophy changes for Tesla, a little bit more,” explained TD Ameritrade Chief Strategist, JJ Kinahan.

In 2020, Tesla’s stock skyrocketed 500% and for a spell became the fifth most-valuable American company. By January 2021, its founder, Elon Musk, surpassed Jeff Bezos, to become the wealthiest person on the planet. As of February 2021, Musk’s net worth is estimated to be roughly $206 billion.

“If any lesser mortals had made the decision to put part of their balance sheet in Bitcoin, I don’t think it would have been taken seriously. But when the richest man in the world does it, everyone has to take a second look,” said Thomas Hayes, managing member at Great Hill Capital LLC in New York.

Unsurprisingly, the latest news of Tesla’s investment strategy ignited a Bitcoin frenzy, sending the price of the crypto to a record high. To date, the price of Bitcoin has risen over 50% in 2021. Many cryptocurrency analysts now see the Tesla announcement as just the beginning of more mainstream adoption of Bitcoin, particularly by more Fortune 500 companies.

In light of the news, Bitcoin has now surpassed both Tesla and Facebook to become the ninth most valuable company on Earth. Its market capitalization is now estimated to be close to $900 billion.

Gold Safe Haven as Coronavirus Spreads, Oil Crashes

The price of gold has been the only asset not in a total freefall of late as a result of the coronavirus, with investors still backing its status as a safe haven and store of value.  After hitting a 7-year high of $1,700 prior to the escalation of the pandemic last week, gold is still staying strong near the $1,600 level.

Since late 2018, more and more investors have been flocking to the precious metal as protection from increasing levels of economic volatility.  Fears of a recession have been steadily increasing as more and more warning signs become apparent, and that was before the chaos that has recently ensued as a result of the global COVID-19 epidemic.

Gold prices have also been boosted by the recent crash in the oil market, with prices plunging by nearly 50% year-to-date as OPEC+ talks have stalled.  Russia has refused to cut its own oil output, angering Saudi Arabia in the process. The Saudis on the other hand, feel that chronic overproduction has become a serious problem and wants to further limit output among members to protect the group’s interests as a whole.  In response, Saudi Arabia has retaliated with a scorched earth policy, drastically slashing prices for its buyers. The result is that the lines have now been drawn for an ongoing price war between Saudi Arabia and Russia.

Previously agreed production limits among OPEC+ members expire at the end of the month, which means that both Saudi Arabia and Russia can start pumping out as much crude oil as they wish on April 1.  Just the mere threat of a price war has further damaged markets already shaken by the COVID-19 coronavirus, and a continuation will mean even more severe geopolitical consequences.

Ali Khedery, a former Senior Advisor for Exxon in the Middle East, feels that “$20 oil in 2020 is coming.”  He goes onto explain that there will most likely be “huge geopolitical implications. Timely stimulus for net consumers. Catastrophic for failed/failing petro-kleptocracies Iraq, Iran, etc – may prove existential 1-2 punch when paired with COVID19.”

This is in contrast to what experts originally predicted, which was a production cut to compensate for a decline in global demand thanks to the coronavirus outbreak.

While the combination of an oil war and the coronavirus could have continued devastating effects on the stock and bond markets, it could do the opposite for gold.  The price of gold was up 5.8% just last week, and prior to the escalation of the coronavirus pandemic, the all-time high mark of $1,895 suddenly wasn’t so far off.  While the climb to that zenith may be delayed for a few months until the world can recover from the virus, the bullish momentum is still there overall.

Gold has actually been the only asset hanging on as of late, as S&P 500 futures were down nearly 5% to start the week.  Things didn’t get any better, as the stock markets continued to slide as news of the pandemic worsened. Besides oil, energy commodities have been struggling in general, with natural gas prices falling due to a massive drop in demand.  United States bond yields are hitting new historic lows, with the yield on U.S. 10-year treasuries briefly falling below 0.5% this past week. The “safe haven” benefits of gold are now more apparent than ever, with the precious metal now poised for even more growth

These negative trends in the rest of the markets don’t look likely to change anytime soon, as the situation with the coronavirus still continues to worsen.  Up until now, the markets have shown some resilience thanks to optimism that the outbreak could be successfully contained. These hopes are evaporating more and more every day though, with over 90 countries around the world reporting confirmed cases of COVID-19.

Marc Chandler, managing director at Bannockburn Global Forex, feels that “the containment of the coronavirus has failed.”  He adds that “the precise economic impact may be unknown…but policymakers and investors do not need such precision. The direction of the shock is clear.  The magnitude is less known, but a cursory look suggests the near-term economic impact is likely more moderate to severe rather than minor.”

Chandler also touched on what is perhaps the scariest element of the situation so far:  the unknown. Investors, particularly those in Europe and North America, don’t fully understand yet how the virus will affect economic growth.  Because of this, the markets are still potentially weeks or months away from a full-on panic, despite the heavy losses that we’ve already seen. What we are currently seeing could just be the tip of the iceberg.

Long story short, experts expect the price of gold to continue to stay strong as long as the coronavirus is dominating the headlines.  Fears of a global recession will persist along with it, as interest rates approach zero or lower. All of this is great news for gold, and the bullish signals show no signs of letting up.

More and more savvy investors are stocking up on gold, and it’s not too late to get in at what is still a relatively low level.  Even if the coronavirus is eradicated in a few months, many of the world’s top economies are still inching closer and closer to an inevitable recession.  By investing in gold, you’re not only protecting your portfolio from the volatility of the markets, but you’re setting it up for significant future growth, as well.

At Regal Assets, we believe in providing you with trusted and proven precious metal investment options.  We take pride in the way we do business and have enjoyed helping our clients grow their portfolios for over a decade now.  Our expert team members work side-by-side with you every step of the way, so you can be sure that your wealth is safe and in a position to grow.

See for yourself what we offer with our FREE Investor’s Kit.  It explains Regal’s IRS-approved investment options and how they work.  We’ll help you choose the right strategy to achieve your goals.

Silver Will Outperform Gold in 2021 According to Commerzbank Analysts

Analysts at Germany’s Commerzbank have a bullish forecast for silver in 2021, according to their recently released outlook for precious metals report. The bank’s analysts foresee silver outperforming gold as the global economy begins to recover from the COVID-19 pandemic, thus fueling the industrial demand for silver.

“The arguments for a further increase in the silver price are, in our opinion, overwhelming. The flood of cheap money is likely to lift not only gold but also silver, which also still has catchup potential compared to gold. Recovery of the economy should also boost industrial demand. We, therefore, expect silver to resume its upward trend,” Commerzbank analysts explained.

Commerzbank foresees the price of silver to increase to approximately $32 an ounce by Q4 of next year.

“Industrial demand is expected to pick up in 2021, as the factors that weighed on the economy this year are likely to lose their influence. With the availability of effective vaccines and the progressing vaccination of the population, the risk of other lockdowns and supply problems should be significantly reduced. However, mine production is also expected to return to normal. Both effects are likely to cancel out each other. Thus, it will probably depend on the other demand components in which direction the pendulum swings in the market balance,” stated the bank’s commodity analysts.

Additionally, Commerzbank forecasts a bullish 2021 for gold as well, fueled by continuing monetary and fiscal policy to ease the repercussions of the Coronavirus pandemic on the global economy.

“We do not expect a change in the ultra-expansionary monetary and fiscal policy despite the upcoming vaccinations. Instead, governments and central banks will continue to be required to cushion the negative effects of anti-corona measures on the economy and society. If the necessary fiscal stimulus measures are not adopted in time due to resistance in the legislative process, pressure on central banks to step into the breach with further easing measures would increase,” explained Commerzbank analysts.

Commodities analysts at the bank expect that given the global pandemic’s economic repercussions will still be felt well into the new year, the price of gold will surge past $2,000 an ounce. Commerzbank anticipates that the precious metal could trade at around $2,300 by Q4 of 2021.

“Even if, as we expect, the corona pandemic can be brought largely under control in the second half of 2021 through sufficient immunization of the population, the enormously increased public debt levels caused by the corona policy and the inflated balance sheets of central banks will remain in place for a long time to come. The arguments in favour of gold have not changed for the central banks at all. The US dollar-denominated bonds held in the foreign exchange reserves hardly generate any positive nominal yields; in fact, the real interest rate on these bonds is almost entirely negative. The euro-denominated bonds even have a negative nominal yield. The price development of gold in this challenging year has also shown that gold offers great advantages as an integral part of foreign exchange reserves,” said the analysts.

Headquartered in Frankfurt, Commerzbank functions as a universal bank. As of 2019, it was the second-largest bank in Germany and had locations in over 50 countries around the globe.

 

Gold Prices Target $1,900 as Oil Continues to Plunge

Gold Prices

The start of the week saw gold prices reclaim the $1,700 level after hitting support levels late last week.  The precious metal was also aided by crashing crude oil prices and continuing concerns regarding coronavirus-induced damage to the economy.

Gold hit its lowest point since April 9 at the end of last week due to reports of new treatments for COVID-19.  The price was back to approaching $1,700 by midday Monday though, hitting $1,692, with futures also climbing to $1,709.

That could just be the beginning of a continued upswing for precious metal investors however, with TD Securities issuing a target of $1,900 an ounce in a mere three months from now.  The reasons for the jump are primarily the anticipation of continued safe-haven demand amid market uncertainty and the continued stimulus efforts of central banks.

There is also the belief among analysts that the market is currently undervaluing gold, especially when taking into account the expected long-term inflation and the overall scale of global quantitative easing.

Bart Melek, TD Securities’ Head of Commodity Strategies, explained how “The Fed’s latest QE program is now the largest on record. Of course, there is a well-known relationship between QE and lower real rates, such that it ultimately suppresses real rates by lifting inflation expectations at a faster pace than nominal rates … The Fed and other central banks are likely to keep their uber-easy policies in place for far longer than anticipated, following a decade of below-target inflation and a newfound interest in asymmetric inflation targeting,”

Melek had good news for gold investors moving forward though, saying that “Gold has been very much subject to what has been happening in the broader market … There will be a positive view of the economy going forward as things open up and given all the massive amounts of monetary and fiscal stimulus, the market will turn to gold as a protector against inflation.”

He added that he sees the price of gold reaching $2,000 an ounce by the end of next year.  The key will be at the point when the U.S. begins to see some economic stability again, but while interest rates are still low.  That’s when inflation will come into play. The bigger the problem that inflation is, the higher gold prices will go. Melek sees gold climbing all the way to $2,100 if the inflation is severe enough.

Falling Oil Prices Arrow

The precious metal has also been helped by a fading dollar and a freefall of crude oil prices.  These factors indicate that investors’ appetite for risk is dwindling, and has helped overcome the optimism concerning a possible vaccine and the easing of global lockdowns, both of which have had a negative impact on the bullion markets recently.

Oil Prices

Oil prices, in particular, have had a tremendous positive impact on gold.  The crude oil market is continuing to experience astounding losses, with prices at their weakest levels on record.  In fact, experts are not ruling out negative prices. Global lockdowns have helped kill the demand for a commodity that was already hurting due to a price war between Russia and Saudi Arabia.  OPEC+ recently cut a major deal to limit output and reduce oversupply problems, but that now seems to be a case of too little and too late. Seeing a leading commodity collapse has only driven up the safe-haven demand for gold among investors, amid a market that has already been plagued with anxiety.

In the very short term though, one can still expect the bullion market to still be somewhat sluggish as investors brace for quarterly earnings reports.  Roughly 20% of the S&P 500 will report earnings this week, and analysts are expecting the worst results year-over-year since 2009.

Wall Street stumbled out of the gate to start the week as well, even before the release of any earnings reports.  Energy shares in general were hit hard by the crash in oil prices, and the market in general saw a wave of pessimism wash over it as more and more economic data is expected that will detail the severity of the pandemic’s impacts.

The dollar had been gaining momentum in recent weeks thanks to bits of positive news regarding the coronavirus.  Gilead Science’s experimental drug remdesivir has seen some success in combating the virus, but it is far from being fully vetted and tested yet.  Similarly, Novartis said it is now conducting late-stage trials of hydroxychloroquine in patients with COVID-19. The start of roll-backs of quarantine restrictions in some European nations, including Germany, boosted the dollar as well, as did hopes that the global containment measures could soon start to be lifted.

That momentum was short-lived however, and the dollar’s gains started to fade by lunchtime on Monday.  Now, commodity experts are looking to the longer term, where the uncertainty around restarting frozen economies seems set to continue for at least a few more months.  Couple that with the ever-increasing belief that we have now entered a global recession, and one is left with strong support for gold in the medium to long term. Craig Erlam, Senior Market Analyst at Oanda, supports this line of thinking, saying how “the longer-term outlook for the yellow metal remains bright though given the current environment.”

Long story short, experts expect the price of gold to continue to stay strong as long as the coronavirus is dominating the headlines.  Fears of a global recession will persist along with it, as interest rates approach zero or lower. All of this is great news for gold, and the bullish signals show no signs of letting up.

More and more savvy investors are turning to gold as a safe haven, and it’s not too late to get in at what is still a relatively low level.  Even if the coronavirus is eradicated in a few months, which is now the best-case scenario, many of the world’s top economies are still in serious trouble and becoming more and more susceptible to inflation.  By investing in gold, you’re not only protecting your portfolio from the volatility of the markets, but you’re setting it up for significant future growth as the global economy inevitably rebounds post-pandemic.

At Regal Assets, we believe in providing you with trusted and proven precious metal investment options.  We take pride in the way we do business and have enjoyed helping our clients grow their portfolios for over a decade now.  Our expert team members work side-by-side with you every step of the way, so you can be sure that your wealth is safe and in a position to grow.

See for yourself what we offer with our FREE Investor’s Kit.  It explains Regal’s IRS-approved investment options and how they work.  We’ll help you choose the right strategy to achieve your goals.