Gold has been on its heels in recent trade, as a number of factors have been working against the metal. Higher stocks, the possibility of a tax deal being made and a lack of any fresh bullish news have all likely played a role in the metal’s lackluster performance.
The upcoming Fed meeting is also possibly taking a bite out of the market as well, as investors get ready for another 25 basis point hike from the central bank. A rate hike seems like a foregone conclusion at this point, and investors are likely to be far more interested in the Fed’s economic assessment and likely path of monetary policy next year.
The metal has a tendency to sell off going into rate hikes, only to rebound after the hike is officially announced. While this time around may or may not be different, long-term gold investors do not fear lower prices, but rather welcome them. The question should not be if gold will rebound, but more a question of when.
Patience can pay significant dividends, and that certainly applies to long-term investing. Now may be the ideal time to keep buying gold regardless of price, as current prices could represent an excellent long-term value.
Consider the issues that may be standing in the way of higher gold right now. Stocks continue their seemingly endless march higher making new, fresh all-time highs along the way. Equities have been moving higher for a decade now, and eventually the bull market will come to an end and stocks will reverse course. Once they do, where is all of that investment capital likely to go
And of course, the geopolitical climate is tense and could remain that way. North Korea continues its pursuit of a nuclear arsenal capable of striking the U.S., and the nation may have achieved that already. This is a problem that is not likely to simply to away anytime soon, and geopolitical tensions could have a major impact on stocks and other global markets.
How about the dollar? Although the currency may bounce around quite a bit, the long-term trend remains lower. As the dollar weakens, so does your purchasing power.
For these, and other reasons, now is the time to keep stockpiling gold. If you haven’t already begun diversifying your portfolio with gold, now may be the ideal time to get started. Adding this key asset class to your holdings has never been easier than it is today, and such investments could potentially increase in value substantially over the years and decades ahead.
Don’t view gold’s weakness in recent weeks as a reason to avoid the metal, rather it should be viewed as an opportunity to purchase a key asset class while it is on sale.
Speak with an Advantage Gold account executive today about the potential benefits of gold ownership. Our account executives are here to answer any questions you may have, and can even show you how to buy and hold physical gold using your IRA account.
Don’t wait for prices to take off without you 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 now.Tags: advantage gold, bull run, Fed, gold, interest rate hike, monetary policy, north korea, rebound, stock market