Although the U.S. economy has seen a comeback from the clutches of the recent Great Recession, world economies are currently faced with a number of key issues that could potentially shape monetary policy and global growth for years to come.
While we believe there are numerous reasons to buy and hold physical gold bullion (as well as other physical precious metals), there are three significant reasons that we feel are simply too important right now to ignore right now:
- The upcoming Presidential election: The current Presidential race is a very heated one, and as of right now looks like it will be taken down to the wire. The two candidates have some very different views on many issues including the economy and foreign policy. Markets could potentially find reasons to get nervous over either candidate. Will Hillary Clinton stand up to Wall Street? Will Donald Trump make his plans for the economy clear? Trump may be seen as a wildcard and could potentially add a degree of uncertainty, although Mrs. Clinton may be viewed as a proponent of further spending and stimulus. Either way, things could change, and change drastically. That could be a big positive for gold.
- Interest rates do not appear to be going anywhere: After all the hype surrounding the latest Fed meeting last week, the central bank elected to hold rates steady by a vote of 7-3. The Fed also lowered its Fed Funds target rate from three percent to 2.9 percent, and seemingly acknowledged what may be a protracted period of slow global growth. So what if there is a single rate hike this year and two next year? Does a Fed Funds rate of one percent or two percent mean you shouldn’t hold gold in your portfolio? Of course not.
- The China credit bubble: It’s no secret that China has seen astounding growth in recent years, and that economic expansion has been fueled by a lot of leverage. When the Chinese debt cycle turns, however, things are likely to get unpleasant fast-very unpleasant. As the world’s second largest economy, a busting of this credit bubble can potentially have significant effects for the global economy, and the scramble may be on to come up with adequate stimulus measures to combat the contagion. The longer China delays this day of credit reckoning, the worse the bubble bursting will be.
Don’t be fooled into going all in on stocks with your retirement. And don’t let the illusion of economic strength deter you from making sound long-term investment decisions. Physical precious metals like gold and silver have withstood the test of time, and have been considered a reliable store of wealth and value for thousands of years.
These key precious metals may potentially appreciate in value, and can possibly provide a meaningful hedge against inflation and a number of other economic issues.
If you don’t own any physical precious metals, now is the time to get started.
Buying and holding real, physical gold and silver has never been easier than it is today. All you have to do is pick up the phone. Speak with an Advantage Gold account executive today about the potential benefits of physical precious metals ownership. Our professionals are here to answer your questions and show you the easiest way to begin building a physical precious metals portfolio. We can even show you how to buy and hold these metals conveniently using your IRA account.
Don’t wait for the Chinese credit bubble to pop or for the next stock market crash. Explore your options today. Call us at 1-800-341-8584 to get started now.Tags: advantage gold, bubble, chinese credit bubble, clinton, gold, interest rates, presidential election, stock market collapse, trump