Gold remains out of favor:
It is hard to think of a more hated asset class than gold and precious metals. It seems everywhere you look, financial experts are telling you not buy it because it produces no income, has costs associated with it, etc. The funny thing about markets is that when assets are heavily disliked by many so-called “experts,” they have an uncanny tendency to rise. Also, try to think of any other asset that you can hold in your hand, or buy milk with or a gallon of gas.
Rates may be going nowhere fast:
Following the Fed’s first interest rate hike in nearly 10 years back in December, the central bank has yet to raise rates again. In fact, the central bank has not given any strong indication of another hike any time soon. Many analysts expected four rate hikes in 2016, and it’s quite possible that there will be zero. Do you think the global economy is going to change enough next year to warrant higher rates? In our view, rates could stay at current levels or lower for a long time to come.
The era of negative interest rates may spread like a virus:
The ECB, the Bank of Japan and other central banks have all gone to negative interest rates in an attempt to stimulate growth through lending. This practice could spread into other nations, and those using this “tool” right now could potentially go deeper and deeper into negative territory. This strategy has not been proven to work, and may carry with it some very serious economic risks that could potentially far outweigh any possible benefits. The idea of negative rates could cause depositors to look for other means to put capital to work, and much of that capital could potentially flow into gold and precious metals.
Gold appears to have made a long-term bottom:
While we do not advocate the active trading of gold or precious metals, we do advocate buying low and selling high when possible. At current levels, gold could potentially represent a long-term bargain of epic proportions. Given the current economic backdrop and difficulties being faced by the global economy, gold prices have the potentially to quickly move back to all-time highs near $2000 per ounce or even beyond. Would you rather buy now at less than $1400 per ounce or wait for prices to hit $1800, $2000, $2500 or even $5000?
The Dollar may have limited upside:
The dollar has become precariously close in recent months to taking out some key support that could possibly send the greenback sharply lower. While the dollar has seen a boost recently on some risk aversion and the idea of further rate hikes in the U.S., the currency could have a hard time moving much higher from current levels. In addition, the Fed could possibly even cut rates again rather than hike, and such a move could send the dollar sharply lower. As the dollar declines, so does your wealth and purchasing power.
Gold is already being bought by investors for these reasons and more. Why wait?
Fortunately, buying and holding physical gold and silver has never been easier than it is today. In our view, gold represents an excellent value and bargain at current levels, but today’s prices are not likely to last. Explore your options now before prices rise. Speak with an Advantage Gold account executive and learn how physical gold or silver may play a role in your long-term investment strategy. Our professionals can even show you how to buy and hold physical precious metals within your IRA account to help safeguard your financial future.
Don’t wait for rates to go further into negative territory, or for the next stock market crash in which billions of investor value will be lost. Getting started is easy, all you have to do is pick up the phone and call us at 1-800-341-8584 to learn more.Tags: advantage gold, buying low, central bank, dollar, gold, interest rates, precious metals, silver