The herd mentality can be defined as the influence wielded by your peers when it comes to your behavior. In other words, it means that people can have a tendency to do something simply because “other people are doing it.”
The recent selling in “paper” gold could be a great example of the herd mentality at work. According to at least one report, gold ETF GLD saw outflows of over $2 billion in the month of November.
SPDR Gold Shares recently reportedly provided reserve data showing gold holdings of 885.04 tons. This represents the lowest level since the early summer, and one of the largest outflows in recent years.
It is times like this-times when investors are scrambling for the exit signs in droves-that savvy long-term investors can potentially make a killing.
We expect this time around will be no different.
The question is: Are you ready to take action?
Ironically, as “paper” gold sellers exit the market, physical gold investors may consider entering.
Gold has dropped significantly since the highs made on election night, and the market has seen a dramatic swing not only in price but in overall sentiment as well. The gold market is being frowned upon by many investors and analysts alike right now.
Many reasons are being given for why gold is likely to go even lower, including economic optimism, potentially higher interest rates and stocks having more room to run higher.
In our view, the more pessimistic the herd becomes about gold, the more reasons long-term investors have to buy right now.
Could gold go even lower from current levels? Absolutely. Will it? Not necessarily.
Markets have a tendency to overshoot, as they are driven by fear and greed. The recent rally in stocks and the dollar and the sell-off in gold and silver could all potentially be overdone.
Will you take advantage of it?
The beauty of being a patient, long-term investor is you don’t have to try to call a top or bottom, and you certainly don’t have to follow the herd. You simply want to try to buy value.
In our view, sub-$1200 per ounce gold represents an excellent value- a value that is not likely to last long.
If you already own physical gold, now may be a great time to add to your holdings. If you don’t already own gold, now may be the ideal time to begin building an allocation.
We’ll show you how…
Speak with an Advantage Gold account executive today about the potential benefits of physical gold and precious metals ownership. We are here to answer your questions and guide you through the process. We can even show you how to buy physical gold using your IRA account.
Don’t become a member of the herd. Take advantage of current price levels in gold before the opportunity slips away. Call us today at 1-800-341-8584 to get started now.Tags: advantage gold, buying opportunity, election, etfs, GLD, gold, paper gold, stock market rally