The gold market is showing some significant signs of strength recently that cannot be denied. Price action on Friday was indicative of the significant underlying strength currently being seen in gold and with good reason.
Following the Employment Situation report for June, which showed nonfarm payrolls adding an additional 287,000 jobs, gold saw some decent selling. That selling, however, was quickly met by willing buyers who happily scooped up gold on the dip. By late afternoon, gold was in positive territory for the day and further upside is a strong possibility.
While we don’t advocate “trading” the market, this type of price action is significant and goes to show just how strong gold is.
In fact, the yellow metal could be on the verge of a sharp and sustained rise higher.
The question is: Do you want to buy gold at current levels or wait for prices to rise further?
Markets are giving numerous mixed signals currently, but don’t be fooled these things usually sort themselves out in short order.
As stocks attempt to make new all-time highs and begin a fresh leg higher, interest rates remain near all-time lows. Even with the broad market S&P 500 rising over 30 points on Friday, rates still saw declines while oil was flat and gold prices rose.
What does that tell you?
It tells us that the bond market believes trouble is ahead, while the stock market is choosing to ignore it.
It is difficult to imagine a scenario in which stocks continue to climb while rates continue to drop. At some point, something’s gotta give.
Our money is on stocks falling…
The fact remains that the global economy remains in a very precarious position, rates are likely to stay low for a long time and significant troubles could be ahead.
A crossroads will likely be upon us soon. Which road will you take?
You can choose to chase equities higher in the hopes of higher returns, or you can be proactive about protecting yourself and your portfolio from the potential stock market disaster that could be right around the corner.
It would appear that many of the big market players are choosing the latter. Shouldn’t you?
Now may be the ideal time to consider an allocation in physical precious metals such as gold and silver. Gold appears to be on the verge of a cyclical bull market, and could be at the beginning stages of a sharp ride higher.
Stocks, on the other hand, have risen substantially in recent years on the back of low interest rates and QE. At some point, that party will come to an end.
So ask yourself this question: Does it make more sense to buy stocks at all-time highs given the current economic backdrop or does it make more sense to buy gold at what could be a bargain price?
Adding physical gold or silver to your portfolio has never been easier than it is today. An Advantage Gold account executive can show you just how easy it is to buy and hold these physical precious metals that carry no counterparty risk and have a long history as a reliable store of wealth and protector of value. We can even show you how to use your existing IRA account to build a precious metals portfolio.
Don’t wait for the next equity market crash, or for gold prices to rise. The signs are present, ignore them at your own risk. Explore your options now. Call us today at 18003418584 to get started.Tags: advantage gold, bond market, economy, gold, interest rates, jobs, speculators, stock market