As was somewhat to be expected, struggling American households will not receive a second stimulus check after all. President Trump deems it better to table this ongoing discussion until after the election. Another reason to try and obtain some gold in the process.
The end of Stimulus?
It has been rumored for a while now, but American households will not receive a second stimulus check. The first financial injection “awarded” everyone with $1,200 to get through the COVID-19 pandemic. Even though this pandemic has only grown worse globally, there will be no further financial relief for citizens in the United States.
Surprisingly, the biggest proponent of a second stimulus check has decided to throw in the towel. President Trump, still recovering from testing positive for COVID-19 himself, has decided to table this entire discussion. No progress on the topic has been made for weeks, further confirming this second check was never a viable option.
To keep up appearances, Trump has indicated stimulus talks will resume after the upcoming US elections. That seems highly unlikely, especially if a new President is elected. While it is evident that US households need aid, printing more free money will never be the answer to this pressing problem. A different form of stimulus will need to be introduced.
When even the current President – who thinks he has the entire world dancing in the palm of his hands – decides to not help out his own countrymen, things look very bleak. The US economy keeps taking hits on the chin, resulting in a weakening dollar. With no new stimulus in sight, it is unlikely things will improve moving forward.
What Does it all Mean?
Under normal circumstances, the lack of a second stimulus check would send stock markets in a downward spiral. This time, it had the opposite effect. That in itself is quite remarkable and rather unique. It shows the markets seemingly don’t care too much about what is happening in this part of the world. For the future, that can only be a good thing.
When stocks rise, precious metals often fall in value. Gold has not seen that big of a dip, even though some of its early gains were wiped out in the process. For the time being, gold remains near $1.885, although it had attempted to retake $1,900 hours earlier.
For the time being, it remains viable to diversify a portfolio to the best of one’s abilities. Avoiding the US Dollar and other fiat currencies is the main order of business right now. Any other investment will be worthwhile, although no major breakouts will occur in any market. For gold, the coming days may prove interesting, although $1,900 remains a contested price level.