The gold market got a nice boost in early action on Thursday as some global central banks remain decidedly dovish regarding monetary policy. For the time being, a lack of inflationary pressures appears to be greenlighting central banks to keep their feet on the gas pedal, and low rates may be the norm for some time to come.
The recently released minutes for the latest ECB meeting echoed concerns of the U.S. Fed. Citing inflation levels that continue to run below target levels, the ECB seems ready to keep rates low for as long as necessary. The lack of inflation is a global economic issue, and the era of low rates may keep commodities and other hard assets on the offensive.
The notion of ongoing low rates may only go so far, however, when it comes to keeping stocks moving higher. The stock market is down sharply in early action today, and the broad market has shown some signs in recent weeks of cracking. The market still be in “buy the dips mode,” however, it remains unclear just how aggressive stock buyers are willing to be given the aging bull market and gridlock in Washington.
The idea of avoiding gold and hard assets due to potentially rising rates seems to have lost credibility at this point, and the recent commentary from central banks may draw significantly more capital into these markets.
The current geopolitical climate along with the age of the bull market in equities could potentially be a major driving force behind higher gold in the coming months and years. Although tensions have calmed somewhat with North Korea in recent days, the likelihood of another flare up is strong, and the issue is far from being resolved.
Add to North Korea the debt ceiling issue and current state of political gridlock in Washington, and you may have a recipe for sharply higher gold prices.
With stocks potentially on the verge of having a major meltdown or entering a bear market, and with ongoing geopolitical risks and low rates; now may be the ideal time to add physical gold to your holdings.
Gold may potentially see a significant increase in value in the current environment, and may also potentially provide a meaningful hedge against a weaker dollar, lower stocks and even deflation. At current levels, we believe that gold represents an excellent value that should be taken advantage of.
Adding this asset class to your 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 to take advantage of your IRA account to build a meaningful allocation in physical gold.
Don’t wait for the next major geopolitical storm or for the next major stock market collapse before adding further diversification to your portfolio. Explore your options for physical gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, buy the dips, decb, gold, inflation, monetary policy, north korea, stock market