The Federal Reserve finally took action on Wednesday, raising the Fed Funds rate by 25 basis points. This move by the central bank did not take markets by surprise, quite the contrary, it had been expected for some time now.
What did come as a minor surprise, however, was the Fed adding a third interest rate hike to their dot-plot for 2017. This possibility of an additional interest rate hike next year drove some selling in multiple markets, including not only gold and silver but stocks and treasuries as well.
Gold and silver were hit by a wall of selling, which could mean these markets are close to a near-term bottom. In fact, gold and silver could potentially see one more significant flush before hitting a bottom.
This could possibly represent the greatest opportunity to buy gold and silver at what is, in our view, a significant discount.
Long-term investors are not feeling a sense of panic as gold and silver decline. These investors tend to focus on the long run, and often do not concern themselves with the daily, weekly or even monthly fluctuations in an asset.
Rather than fearing a sell-off in an asset class for which they may be long, some investors hope for just the opposite-that prices will come down so they can buy more at lower levels and dollar-cost average their position.
One of the best times to buy an asset class is when everyone has seemingly given up on it, or thrown in the towel.
Gold and silver could be very close to that point right now.
Although short-term gold “traders” may be bearish the gold market, and analysts may call for further declines in the silver market, it is important to keep in mind that their objectives are likely very different from that of the long-term investor.
And the more bearish these people become, the greater the buying opportunity that may be seen.
Do you think another entry on the Fed’s dot-plot for next year is going to have a huge effect on the price of gold 5, 10, 15 or even 20 years from now?
In our opinion, probably not.
Do you think gold and silver will still be considered a reliable store of value and protector of wealth during those time frames?
In our opinion, definitely.
Do you think paper currency values will still be declining, eroding more of your purchasing power?
In our view, the answer is yes.
If you really stop and think about gold from a long-term standpoint, what reason do you have not to buy gold at or near current levels?
Some of the greatest turning points in markets are when sentiment becomes extremely bullish or bearish. When the last gold bull throws in the towel, we think it’s time to buy, and time to buy gold in significant quantities.
Buying gold at current price levels is easy-let us show you how.
Speak with an Advantage Gold account executive today about the potential benefits of physical gold ownership. Our precious metals professionals are happy to guide you through the entire process of buying and holding physical gold or silver, and can even show you how to buy these key precious metals using your IRA account.
If you want to take steps to diversify your portfolio and help secure your financial future, now is the time to act. Gold and silver are likely at or very near a major turning point. Don’t wait for prices to rise. Call us today at 1-800-341-8584 to get started today.Tags: advantage gold, buying opportunity, discount, dot-plot, Fed, gold, interest rate hike, yellen