The term recession can raise the hair on the back of investors’ necks. According to some market observers, the next recession will be seen within the next 18 months or so.
In a recent article from Marketwatch.com, Goldman Sachs alum Raoul Pal discussed some of his views on the economy and where investors may want to park some cash.
At the heart of the conversation was negative interest rates, and Pal stated “As we get to negative interest rates, gold is a good place to park your cash. I’m not a gold bug, but this is the currency I would choose now.”
Pal also believes that gold is one of the most mispriced assets out there right now, and that the yellow metal should be significantly more expensive given the likelihood of a global financial collapse and a further move towards negative interest rates.
Pal is not the only one thinking a recession is in the cards-and soon. Billionaire investor Wilbur Ross recently shared his views that a recession will arrive within the next 18 months and other prominent investors have shared similar concerns recently.
Should these opinions prove to be correct, what will the Fed do? They will likely try to fight the recession with low interest rates and more stimulus measures. This could potentially be a huge positive for gold.
The end of the business cycle is likely close and investors have a choice to make right now:
Continue to hold out for higher stock prices and chase the market higher or start taking steps to reallocate capital for a sharp slowdown.
What makes more sense to you?
Chasing higher equities while the market remains near all-time highs or getting your portfolio ready to survive a possible downturn and keeping some powder dry to enter the market at more favorable levels?
How about putting capital to work now in asset classes that could potentially hold their value or increase dramatically in value during a recession?
In our view, the next downturn could show just how undervalued gold is at current levels.
The question is: Would you rather consider an allocation in gold at $1250 an ounce or at $1800 an ounce?
Assuming you prefer to buy low and sell high-or not at all-now is the time to consider an allocation in gold.
Buying and holding physical gold bullion has never been easier than it is today-and we can show you just how simple it can be.
Speak with an Advantage Gold account executive today about the potential benefits of physical gold ownership. Our professionals are here to answer any questions you may have, and we can even show you how to buy and hold physical gold using your IRA account.
Don’t ignore the numerous warning signs that are currently flashing red. Explore your investment options now. Call us today at 1-800-341-8584 to explore physical gold as an option for your portfolio.