The decline in crude oil prices this past year was the subject of many financial media headlines and stories. After trading as low as the mid-thirties per barrel last winter, the oil market has come back, but not without some ups and downs.
With several of the world’s largest oil producers possibly getting ready to implement a production freeze or even a production cut, black gold could potentially see further upside from current levels. In fact, the oil market could potentially rise substantially from current levels.
Oil appears to be in the midst of a bullish reversal pattern that could possibly see prices return to $70 per barrel or even higher.
Why is this important for gold investors?
Rising crude oil prices are inflationary, and signs of inflation could potentially fuel buying in gold and other assets that some believe provide a meaningful hedge against rising prices.
Why is higher crude oil such a big deal? Consider this:
Rising crude oil prices can have a significant impact on nearly every corner of the economy. From manufacturing to transportation, it is difficult to think of something that is not directly or indirectly affected by the price of crude.
The vast majority of freight in the U.S. is shipped by truck. Think about the last time you were on the highway. You may have seen various trucks out there transporting goods for companies like Jewel-Osco, Target, Home Depot and others.
All of this trucking consumes an enormous amount of gasoline.
As gasoline prices rise along with rising oil prices, the higher cost of gasoline must be passed along somewhere along the line. Inevitably, those higher costs are passed down to the consumer-meaning you pay more for everyday products.
A sharp rally in crude oil could be the wolf in sheep’s clothing that the gold market has been lacking. The fresh, bullish catalyst that could potentially fuel an upside breakout from the market’s recent range.
And it can happen fast…
Oil still has a number of open short positions and many are still betting on lower crude. If these shorts are proven wrong, a massive short squeeze could fuel a significant and rapid rally in oil prices.
$70 or $80 crude oil could be back in the blink of an eye.
If you don’t have assets in your portfolio that may potentially provide a hedge against inflationary pressures, now is the time to take action.
Hard, physical assets like gold and silver have been regarded as a reliable store of value and protector of wealth for thousands of years, and may possibly provide a meaningful hedge against rising inflation.
Don’t let the onset of higher prices catch you off-guard. Take steps now to fight inflation.
Speak with an Advantage Gold account executive today about the potential benefits of physical gold and silver ownership. Our professionals are here to answer your questions, and to show you how easy it is to begin allocating to physical precious metals today. We can even show you how to acquire and hold physical gold and silver using your IRA account.
Don’t let runaway inflation take a bite out of your portfolio. Take steps to hedge against higher prices today. Consider an allocation on physical gold or silver. All you have to do is pick up the phone. Call us today at 1-800-341-8584 to get started.Tags: advantage gold, crude oil, economic outlook, gold, inflation, oil price decline, reversal pattern