Although the gold market has thus far been unable to stage a convincing upside breakout from its recent trading range, the metal’s performance despite numerous potentially bearish factors could be viewed as a major sign of strength.
Gold has not faltered despite higher equities, slumping crude oil and a more hawkish Fed. In fact, the risk-on mentality along with the notion of additional rate increases has not put much of a dent-if any-into the yellow metal. This would seemingly indicate that buyers are happy to scoop up gold around current levels, and that demand has remained steady.
Gold’s resilience has caught the eye of analysts, and in a recent interview with Kitco.com, Dennis Gartman of the Gartman Letter was quoted as saying “Given the fact that crude has been under some very real pressure over the last month or so, you have to be reasonably impressed that gold has, at least, held its own.” Gartman went on to say that “I hesitate to say there’s any great short-term correlation between the two. On balance, gold whether it is in dollar, euro or yen terms, I think gold wants to move quietly higher. The psychology is overwhelmingly bearish and yet prices are not making new lows, that is worthy of note.”
Perhaps gold investors know something that stock investors don’t…
The gold market may simply be biding its time before the next major bullish catalyst is seen. Such a bullish catalyst could take numerous forms, from a stock market meltdown to a geopolitical crisis. Whatever the case may be, many investors seem to feel that there is as much reason to own gold now as ever before.
It is difficult to make any rational argument against more potential upside in gold given its recent behavior. Holding its trading range and seeing buying on dips, the yellow metal could very well be approaching the point of a major upside breakout that could see prices higher by hundreds of dollars per ounce.
Gold could be on the verge of a major multi-year bull market, just as stocks may be approaching the end of the line for their almost 10 year run higher.
This makes right now an ideal time to consider further diversification with physical gold. The gold market has the potential to outperform during a stock market crash or protracted bear market, and you could make the argument that the writing is on the wall.
Gold’s underlying strength cannot be ignored, neither can the overstretched valuations in equities.
Speak with an Advantage Gold account executive today about the potential benefits of gold ownership. Our associates are here to answer any questions you may have, and can even show you how to take advantage of your IRA account to diversify with real, physical gold. Diversifying with gold has never been easier.
Don’t wait for the next major stock market crash or for gold to breakout higher. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, catalyst, equity collapse, fed hawks, geopolitical risk, gold