Trading gold over the last several months may have been profitable for those active traders who bought the bottom of the range and sold the top. As with any trade or investment, however, the more times the trade works the greater the danger of returning to the well one too many times.
This may be exactly the case with gold as it approaches its recent highs. There will likely be those looking to sell the recent rally and strength in gold, and those investors may simply get mowed down like grass this time as the gold bulls take firm control over the market.
Gold has numerous issues propelling it higher currently. There remains numerous disappointments in key pieces of economic data. The Fed is likely to remain dovish with regards to monetary policy, and rates may not go significantly higher any time soon. Inflation continues to be lacking, and you could argue that deflation remains a greater risk. The dollar index has been trending lower, and appears set to continue lower in the absence of inflation or passage of major tax or fiscal spending legislation.
And then, of course, is all of the geopolitical issues currently being seen around the world. The risk of military conflict with North Korea is getting very high, and the country may be on edge to a degree not seen since the Cold War.
Any way you slice it, there are numerous, powerful reasons for gold to keep moving higher. As gold moves higher, chances are pretty good that stocks will be moving lower as risk appetite dwindles.
Any gold bears could be caught off-guard with an extremely powerful surge to the upside. Stock bulls, on the other hand, could also be hit hard if stocks begin a sudden and powerful sell-off.
Times like this call for caution when it comes to investing, and there is still time to take action.
Hard assets like physical gold may potentially appreciate in value during tough economic or geopolitical circumstances, and gold could potentially be at the beginning stages of a multi-year bull market that could see prices make fresh all-time highs.
Not only could gold go higher in price, but it may also provide a meaningful hedge against a number of economic issues such as inflation, deflation, declining currency values and more. This metal is recognized all over the globe as a reliable store of wealth and value, and can be used as a medium of exchange anywhere in the world.
Buying and holding physical gold as part of your overall portfolio has never been easier than it is today. Speak with an Advantage Gold account executive today about the potential benefits of physical gold ownership. Our associates are here to answer any questions you may have, and can even show you how easy it is to buy and hold real, physical gold using your IRA account.
Don’t wait for gold to breakout higher before taking action. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, bear, bull, Fed, gold, inflation, monetary policy, north korea, upside