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Former Honduras President Juan Orlando Hernández Convicted in Drug Trafficking Case
Former Honduras President Juan Orlando Hernández was once a powerful figure in Honduran politics, serving as a member of Congress, the leader of that body, and eventually as the nation’s president. However, on Friday, an American jury in Federal District Court delivered a verdict that would change his legacy forever – guilty of conspiring to import cocaine into the United States and possessing destructive devices, including machine guns.
During his initial presidential campaign in 2013, Hernández positioned himself as a law-and-order candidate who would combat the rampant drug trafficking and crime plaguing the country. However, according to U.S. prosecutors, Hernández’s success in politics was fueled by drug money from traffickers, contradicting his public image.
Prosecutors revealed that Hernández received millions of dollars from trafficking organizations, including notorious figures like Joaquín Guzmán Loera, also known as El Chapo. In exchange, Hernández allegedly allowed large quantities of cocaine to pass through Honduras en route to the U.S., even boasting about his intentions to flood drugs into the American market.
Witnesses and evidence presented during the trial painted a grim picture of a country where drugs and politics intertwined, with bribery and corruption rampant among politicians. The courtroom was filled with Hondurans, eager to witness Hernández’s reckoning in a trial they doubted could have occurred in their home country.
During his testimony, Hernández vehemently denied any involvement in drug trafficking, dismissing the witnesses as “professional liars.” However, the prosecution painted a different narrative, alleging that he had accepted bribes and protected drug shipments using the power of the state.
The trial featured testimonies from former traffickers, including one who served as a mayor while engaging in drug activities and violent crimes. These witnesses detailed Hernández’s alleged involvement in drug trafficking, bribery, and his promise of protection in exchange for support in political roles.
The prosecution’s case also included seized evidence, such as firearms, grenades, and notebooks with Hernández’s initials documenting drug transactions. This trial highlighted the deeply rooted corruption and criminal activities that had infiltrated the highest levels of Honduran politics.
One particularly notorious witness, Devis Leonel Rivera Maradiaga, confessed to bribing Hernández and spoke of the pervasive corruption that allowed criminal organizations to thrive with impunity. The trial exposed a web of deceit and criminality that implicated Hernández in facilitating drug trafficking and violence in Honduras.
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Is now the right time to invest in gold as prices have cooled?
The price of gold has climbed to record highs recently and has remained strong through much of April. And, that growth continued until the precious metal traded at around $2,390 per ounce on April 19, 2024. But since, growth in the price of the precious metal has cooled, with gold’s price now hovering around $2,300 per ounce.
This lull in gold’s price may represent an investment opportunity.
In general, investing is centered around buying assets when prices are low and selling them when prices are high – generating a profit on the difference between the two. So, considering the declines in gold’s price over the past few days, now may be the time to make your investment. But is buying gold during this lull in prices really a good idea?
Compare your gold investment options among leading brokers now.
Gold prices have cooled. Should you buy in now?
With gold’s price down from recent highs, you may be wondering if now is the right time to buy in. There are several reasons the dip in gold’s price may represent an opportunity to buy. Here are some of the biggest:
Prices may rise again
If looking at a gold price chart shows anything for certain, it shows that changes in the overall growth of the medal come in fits and spurts. Periods of price growth are typically followed by periods of declines and vice versa.
But with inflation rising in recent months – and with gold’s reputation as a safe-haven asset that can hedge against inflation – it only makes sense that the price of the precious metal will eventually start to head up again in the future. While attempting to time that directional change may be tricky, buying the precious metal while the price is down gives you the opportunity to take advantage of any upward movement that may be ahead.
Add gold to your portfolio now before prices have a chance to rise.
You may be able to make a quick profit
Gold isn’t known as an asset in which you can earn a quick return, but in today’s market, that may be the case. Don’t forget that in January, gold was trading at just $2,000 per ounce. And, by mid-April, the commodity’s price had climbed to around $2,400 per ounce. That’s about 20% growth in a matter of months, much of which happened since March 1 – an impressive climb for any investment asset.
Perhaps more importantly, gold’s price growth through the beginning of 2024 shows that the commodity doesn’t have to be a buy and hold style investment that you keep in a safety deposit box or precious metal depository for years to come. There’s also the possibility that the commodity’s price could climb further ahead, making it a compelling way to potentially generate a quick profit.
There are other benefits of investing in gold
There are other benefits of investing in gold that have little to do with the price growth seen thus far in 2024 – or the lull in prices seen over the past couple of days. Those benefits include:
- Inflation protection: Gold has long been considered an inflation hedge, and for good reason. When inflation drives the prices of consumer goods and services up – and the value of the dollar down – gold’s price tends to rise. So, it could be used to maintain the value of your portfolio during inflationary economic conditions. That’s important in today’s economic environment as stubborn inflation continues to weigh on the value of the dollar.
- Portfolio diversification: Gold’s price doesn’t always move in the same pattern that bonds or stocks do. So, mixing a reasonable amount of gold into your portfolio (up to 10% of your portfolio assets) as a diversifier could protect you from losses should one or more of your traditional portfolio assets fall in value. “If you have less than 5% – 10% of your net worth in commodities & FX (forex), you should absolutely consider adding exposure to gold and other precious metals,” says Vijay Marolia, money manager and managing partner at the wealth management firm, Regal Point Capital.
The bottom line
Gold’s price has fallen from recent highs – which may represent an opportunity to tap into growth ahead. However, gold isn’t simply a “buy while it’s low and sell while it’s a high” kind of investment opportunity. The commodity can also protect your portfolio from the stubborn inflation we’ve seen thus far in 2024 while acting as a diversification tool that could increase your risk-adjusted portfolio returns. So, consider adding gold to your portfolio today while it has the potential to grow in value.