Alarm Bells Ring and Gold Rises In October As Stocks and Property Fall Globally

In our latest video update, we consider the performance of markets in a volatile October. Stock markets globally fell sharply while gold acted as a hedge in all currencies, rising 1.7% in dollars, 4.4% in euro terms and 4.2% in sterling terms.

Stocks Fall Sharply in October
The S&P 500 is just short of a 10% decline from its record September high and remains on pace for the worst month since 2009. It has fallen from a record high of 2930 to 2640. In October alone, the S&P is down 7.3%.

Asian shares as represented by the MSCI Asia Pacific Index have entered a bear market. Many Asian stock indices, including China, fell into a bear market last week amid the global sell-off and China is down a large 30%. Japan and Australia are down nearly 15% from recent peaks


October Market Performance (Finviz.com)

From their 52-week highs, the big tech stocks, the FANGs are down sharply: FB -33.9% AMZN -23.8% NFLX -32.8% GOOGL -18.0% and the FANG index is now in bear market territory.

Is this a correction or the start of a bear market or crash? We are not betting people at GoldCore but if we had to bet, our money is on one of the latter two – a bear market or a crash in the coming months.

Property Falls Continue
House prices in over valued markets continue to fall with Australia being at the vanguard in this regard. House prices are ‘falling by over $1,000 a week’ in Sydney and Melbourne according to Deloitte.

In the UK, the housing market, particularly in London, continues to slow down. UK house asking prices have been slashed and asking prices of almost two-in-five properties for sale in Britain has been reduced by an average of more than £26,000.

In London, 39.5 per cent of property listings have been reduced in price. Kensington and Chelsea registered the biggest drop in cash terms with an average discount of £127,394.

In Ireland, the Dublin housing boom looks vulnerable and weakness has crept into the higher end of the prime Dublin housing market as Brexit jitters deepen.

Conclusion
Many political, economic and financial risks have been ‘bubbling’ away under the surface and were being ignored as risk assets, especially U.S. stocks, kept marching higher.

As financial markets fell in October, these risks came to the fore and became harder for the media to ignore.

Yet still very few have “joined the dots” and considered how the confluence of these many risks will likely create another global financial crisis…

Watch Video Update With Charts Here

 

News and Commentary

Gold prices recover from 3-week low on softer US dollar (EconomicTimes)

U.S. Mint American Eagle gold coin sales rise 7.3 pct in October (Reuters.com)

Stocks surge to cap off wild October, but S&P 500 posts biggest monthly loss since 2011 (Bloomberg.com)

Cost of Dublin luxury homes falls for first time since recovery (IrishTimes.com)

How Gold Outshone Bitcoin In October (Forbes.com)

One ominous sign that another recession is looming (MarketWatch.com)

The Same Old COMEX Gold Games (GoldSeek.com)

Ireland in danger of turning boom to bust again (IrishTimes.com)

From the GoldCore Vault (Sept 2018): Gold Largest One Day Price Rise in History (GoldCore.com)

 

 

Gold Prices (LBMA AM)

31 Oct: USD 1,217.70, GBP 955.77 & EUR 1,074.25 per ounce
30 Oct: USD 1,220.00, GBP 956.36 & EUR 1,074.33 per ounce
29 Oct: USD 1,230.75, GBP 958.88 & EUR 1,078.38 per ounce
26 Oct: USD 1,236.05, GBP 964.98 & EUR 1,087.23 per ounce
25 Oct: USD 1,232.15, GBP 954.67 & EUR 1,079.36 per ounce
24 Oct: USD 1,231.65, GBP 952.80 & EUR 1,078.68 per ounce

Silver Prices (LBMA)

31 Oct: USD 14.34, GBP 11.23 & EUR 12.64 per ounce
30 Oct: USD 14.43, GBP 11.32 & EUR 12.71 per ounce
29 Oct: USD 14.65, GBP 11.42 & EUR 12.86 per ounce
26 Oct: USD 14.69, GBP 11.48 & EUR 12.94 per ounce
25 Oct: USD 14.74, GBP 11.43 & EUR 12.92 per ounce
24 Oct: USD 14.75, GBP 11.42 & EUR 12.92 per ounce

Recent Market Updates

– Gold Analysts At LBMA See 25% Return To $1,532/oz In 12 months
– Gold Improves Investment, Pension and Central Bank Portfolio’s Risk-Adjusted Returns
– Gold Gains Nearly 1% On Week As Global Stock Markets Fall Sharply
– Dublin Housing Boom Set To Bust?
– Palladium Surges To All Time Record High On Russian Supply Concerns
– Happy Birthday GoldCore
– “IMF Warning Highlights Gold’s Importance As A Diversification and Happy Birthday GoldCore”
– End Of The Financial World?
– Gold Reserves Surge 1,000% In Hungary As It Joins Poland, Russia, China and Other Central Banks Buying Gold
– How Do You Sell Your Digital Gold When the Internet Goes Down?

Mark O'Byrne

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