Gold has a number of reasons to potentially move higher from current levels. A weaker dollar, low rates, government debt and the potential for a major stock market collapse could all keep the metal moving higher in the coming months and years.
There is another major bullish factor that could also be a major driver of gold prices. A lack of exploration could put a major crimp in supplies, fueling a price rise. In a recent article on Kitco.com, Lamgold President and CEO Stephen Letwin discussed this lack of exploration and how it may impact prices. In a keynote speech at the Northern Miner’s Progressive Mine Forum in Toronto last month, Letwin was quoted as saying: “Gold business has a great future.” He then compared the current state of the gold market to the crude oil market of the 1990s, at which time investment in oil stopped and oil was trading at $9 per barrel.
According to the article, he went on to state that “The gold business, the metals business is in the same situation today, and as sure as I’m standing here, you’re going to see a response in price because of the lack of exploration that’s been done in this mining field.”
He then reportedly went on to ask: “How much do you think gold is up since 2002? Three hundred and sixty percent. Gold has moved on average 11% every year for 16 years.”
The gold market is governed by the laws of supply and demand, and the current equation could be tilting towards higher prices as demand rises and supply falls. If gold were to rise another 360 percent over the next 15 years, you are looking at a price of over $4500 per ounce. The question is: Would you rather buy gold now at $1270 an ounce or wait to pay over $4000 per ounce?
There has never been a better time to add physical gold to your portfolio. This key metal can add diversity to your holdings and may potentially provide a meaningful hedge against a number of economic and geopolitical issues such as inflation, deflation, declining currency values and more.
With the bull market in stocks becoming extremely long in the tooth and with the potential for a major market crash or protracted bear market, why wait? Numerous economic and geopolitical issues point to a strong potential for higher prices and a major bull market in gold.
Adding physical gold to your holdings has never been easier than it is today. Speak with an Advantage Gold account executive now about the potential benefits of gold ownership. Our account associates are here to answer any questions you may have, and can even show you how easy it is to incorporate physical gold into your IRA account.
Don’t wait for higher prices or for the next major stock market crash before taking action. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started today.Tags: advatntage gold, exploration, gold, mining, price appreciation, supply and demand