Right now may be a great time to buy gold or add to existing holdings. After trading at two-month highs recently, gold has backed off slightly as some profit taking is likely seen and as global stock markets continue their ascent.
The recent sideways trade in the dollar has also likely given gold a boost, and it remains unclear if the yellow metal will attempt to challenge the highs seen following the Trump election victory.
When it comes to investing, we are of the opinion that you should always try to see the forest through the trees, and not base long-term investments on short-term trends or regular market “noise.” That being said, whether gold continues to rise from current levels or whether it pulls back from here is somewhat irrelevant.
The long-term investor is not concerned with where gold might be tomorrow, next week, next month or even the next quarter. No, the long-term investor is more concerned with: 1.) where gold could possibly be in the coming years or even decades 2.) How gold could potentially provide “value” in the meantime regardless of its price.
In our opinion, gold is simply in the midst of a pullback within a longer-term uptrend. Just a few years ago, gold was trading near $2000 per ounce. Some analysts felt at the time, and still feel, that gold has the potential to trade far beyond those previous all-time highs. Calls for $2500, $5000 or even $10,000 per ounce gold are still common. In many analysts’ minds, it doesn’t seem to be a question of “if” gold trades that high but rather “when.”
Although we are not in the business of speculating, we do feel the potential for gold to rise substantially does exist, and that patient, long-term investors could possibly be rewarded.
While price appreciation is a great thing, and while everyone likes to see the value of their investments rise, there is more to owning gold than the potential for higher prices.
There are a number of uncertainties within the global economy and global geopolitical landscape that could potentially fuel demand for gold, and for which gold can potentially provide a meaningful hedge. Some of these potential issues include:
- Rising inflation
- The potential for declining currency values
- A possible trade war
- A stock market crash
- Ongoing low rates and QE in some economies
- Other geopolitical risks
Owning physical gold, silver or other precious metals can potentially provide price appreciation, a meaningful hedge against a number of potential economic or geopolitical issues and perhaps most importantly-peace of mind.
If you don’t already own physical gold or silver, now may be a great time to consider building an allocation. If you already own physical gold or silver, now may be a great time to add to your holdings.
And it’s never been easier.
Speak with an Advantage Gold account executive today about the potential benefits of physical gold or silver ownership. Our precious metals professionals are here to answer your questions, and can even show you how to buy and hold physical gold and silver using your IRA account.
Don’t wait for inflation to rear its ugly head or for the next major stock market crash. Explore physical gold and silver as a potential diversification tool today. Call us at 1-800-341-8584 to get started.Tags: advantage gold, devaluation, gold, inflation, long term, short term, stock market crash, trade, trade war