In spite of the declines seen in recent weeks following Donald Trump’s Presidential election victory, gold and silver still managed to put together a solid year of gains. Although these key precious metals remain vulnerable to further selling pressure, long-term buyers and bargain hunters may step in at or around current price levels, helping the metals find what may be a long-term bottom.
Numerous issues have been cited for gold’s recent weakness, including stronger stocks, rising interest rates, a higher dollar index and economic optimism. While some of these issues may persist for the foreseeable future, many analysts are feeling more bullish about gold in the New Year.
This makes sense given many of the potential risks financial markets may face including trade wars, Brexit, more dominoes falling in the EU and the potential for a hard landing in China. From Bloomberg:
“While the precious metal has always been hoarded in times of trouble, a bevy of political and economic surprises in 2016 sparked a surge in buying that sent bullion to the first annual gain in four years. Prices may rally about 13 percent in 2017, according to a Bloomberg survey of 26 analysts.”
Possibly adding to gold’s building bullishness is the current level of pessimism surrounding the market. As gold becomes more and more out of favor with the masses, the more likely it may be that the yellow metal has found a significant long-term bottom in price.
Stocks have been in a multi-year bull market that is arguably becoming quite long in the tooth. Gold, on the other hand, may be showing signs of turning higher following a bear market in recent years.
This begs the question: Does it make more sense to chase stocks higher at current levels after years of gains, or might buying gold at current levels present a better value for your investment dollars? Can stocks also potentially provide a meaningful hedge against economic or geopolitical issues such as inflation or declining currency values? Are stocks more likely to rise or fall when the next economic crises sends investors running for the exit signs?
In our view, there are far more compelling reasons to buy gold here and now than to buy stocks here and now. If you agree with that assessment, now is the time to take action.
Fortunately, buying and holding physical gold has never been easier than it is today. All you have to do is pick up the phone.
Speak with an Advantage Gold account executive today about the potential benefits of physical gold ownership. Our precious metals professionals will show you just how easy it is to begin acquiring and holding physical gold coin and bullion, and can even show you how to buy physical gold using your IRA account.
Don’t wait for the next stock market crash or economic calamity before taking action, and don’t wait for gold prices to rise before exploring your options. To begin building a physical gold allocation or to add to existing holdings, give us a call at 1-800-341-8584 today.Tags: advantage gold, bloomberg, brexit, eu, gold, trump