Think Twice Before Selling, Or Three, Four or Five Times…

The gold and silver markets have been beaten up recently since the surprise Presidential election victory of Donald Trump. With higher stocks, strong risk appetite and a higher dollar index, precious metals investors have had little to cheer about in recent weeks.

Some investors may even be considering selling their gold or silver holdings in light of recent market weakness.

In our view, this is not only a big mistake, but is the exact opposite of what you should be doing.

There are a number of issues playing out right now that may make the notion of selling precious metals or other perceived safe haven assets tempting. We want to remind you that such market scenarios have been seen before and will be seen again. Don’t let short-term emotion deter you from your long-term plan.

Stocks are making new all-time highs: Our first thought is simply “so what?” In our opinion, the more stocks rise the harder they fall. Do you remember the dot.com bubble or perhaps the financial crises of 2008? Stocks will continue higher until they don’t. In our view, this is not a question of “If” but when. As we have seen time and time again, markets also have a way of taking the stairs up and the elevator down.

New leadership will get the economy on track: First of all, we hope the new leadership does promote economic growth. That being said, however, it remains unclear how some of the new administration’s economic goals will be accomplished. For instance, how will the country enjoy lower taxes while also boosting fiscal spending?

Gold and silver have bearish technicals and are trending lower: Once again, our initial thought is “so what?” Markets go up and markets go down, that is the nature of markets. For those of you who are uncomfortable buying markets that are trending lower, ask yourself this simple question: “Would I rather buy something when it is cheaper or when it is more expensive?” Enough said.

Interest rates are going to rise: Although interest rates are likely to go up, we see nothing at this time that would indicate to us a sharp rise in rates anytime soon. With much of the globe awash in negative interest rates and various forms of quantitative easing, it is difficult to imagine a scenario in which rates rise enough to become a legitimate deterrent to holding physical precious metals or commodities.

There are a number of reasons that investors could be tempted to sell gold or silver or perhaps scale back on allocations. We think, however, that if you simply take a step back from the current market situation and judge it dispassionately, you will come to a very different conclusion:

That not only should you keep your existing gold and silver, but that recent downside may provide you with an opportunity to bolster holdings, dollar-cost average and stretch your investment dollars further.

Markets go up and markets go down. Although gold and silver have the potential to dramatically increase in price, we believe that these precious metals should be bought for their potential to hedge against such economic issues as inflation, declining currency values, deflation and more. The potential for massive price appreciation is simply the icing on the cake.

Why not buy these metals at the best prices you can? Lower gold and silver prices should not be feared, but should be taken advantage of.

Here’s how:

Speak with an Advantage Gold account executive today. Our precious metals professionals are here to answer your questions and to show you how to begin building a physical precious metals portfolio. Own gold and silver already? Let us assist you in acquiring more. We can even show you how to buy and hold physical gold and silver using your IRA account.

We don’t think current price levels will be seen much longer. Don’t wait for gold and silver prices to head higher before taking action.  Call us today at 1-800-341-8584 to get started.

Tags: , , , , , ,

Category |