The Dow has hit a major milestone – 21000. Markets continue to cheer on the Trump administration, and are moving higher on hopes of stronger economic activity and tax cuts.
Interest rates have begun to rise again, and the dollar index is also on the move to the upside again. Interest rates could potentially challenge their post-election highs while the dollar index could do the same.
The Fed has sounded significantly more hawkish, and a March interest rate hike is now not only very much on the table but likely.
Despite rising rates, a rising dollar, and stocks making fresh all-time highs, the gold market remains not far from recent highs after trending higher since the beginning of the year.
Interesting that gold remains at current levels despite so many issues working against it?
Perhaps it is as simple as some investors having the ability to look at the bigger picture, rather than simply the short-term gains in the stock market.
Perhaps there is an underlying need for gold that may keep a floor under prices no matter how high equities might go.
Perhaps gold can potentially provide a meaningful hedge against a number of economic and geopolitical issues.
Maybe it is for all of these reasons that the yellow metal has remained as resilient as it has.
This would seemingly go to show that higher stocks, higher rates and any other obstacle in gold’s way cannot stop the laws of supply and demand.
While some might suggest that lower gold prices could be ahead due to all of the factors outlined above, someone out there is still buying. And they are buying enough to keep the gold price near recent levels despite all of those factors.
The fact is that gold may potentially rise due to a number of factors. Some of these factors include rising inflationary pressures, massive debt loads and geopolitical uncertainty.
Many of the world’s largest central banks have been buying gold in recent years. Isn’t that something worth paying attention to?
If the largest financial institutions on the planet see fit to buy and hold gold, shouldn’t you consider an allocation as well?
Fortunately, building an allocation in physical gold has never been easier than it is today. All it takes is a phone call.
Physical gold ownership can potentially provide a meaningful hedge against a number of economic and geopolitical issues like inflation, declining paper currency values and more. Due to its long history as a reliable store of wealth and value, it can also provide peace of mind during periods of economic turmoil.
Speak with an Advantage Gold account executive today. Our precious metals professionals are here to answer any questions you may have about physical gold ownership, and can even show you how to buy and hold physical gold using your IRA account.
Don’t wait for the price of gold to rise further before taking action. Explore your options for physical gold ownership today. Call us at 1-800-341-8584 to get started.Tags: advantage gold, debt, gold, march interest rate hike, stock market high, trump administration