The gold market is kicking the New Year off right, and the market is showing some very impressive signs of strength. The market has a number of issues that could potentially fuel higher prices in 2018, and outlined below are what could be the three primary drivers of higher gold as the New Year gets started.
- Dollar weakness: The dollar index just finished its worst year since 2003, declining by some 10 percent. This finish also was the first losing year for the currency since 2012. The currency is dealing with a number of issues currently, including worries over an exploding deficit and whether or not the Fed will follow through on its plans for further rate hikes. The dollar also looks technically weak, and further selling could set off additional chart-based selling that could intensify declines.
- Stocks: The stock market has been moving higher for a decade at this point, rising a few hundred percent from its financial crises lows. The current bull market is not likely to go on indefinitely, and 2018 could potentially be the year the bull stops and the bear starts. Geopolitical tensions, the notion of higher rates and overvaluations-among other issues- could all play a role in a stock market reversal, or major collapse. Once stocks begin to show real signs of trouble, investors may go running for the exit signs, and look to put capital to work elsewhere.
- Geopolitics: The geopolitical landscape looks to be challenging, and numerous major issues could possibly intensify in the New Year. Although a nuclear North Korea remains at the top of the list, there are numerous other issues that could also define the New Year. Tensing relations with Russia and China, along with the possibility of further troubles in Europe could all have an impact on global financial markets.
These are just some of the issues that global financial markets will have to contend with, and as the year changes so do market dynamics. Given the enormous risks to financial markets and the global economy, now may be the ideal time to take steps to try to protect gains from the stock market rally and to position your portfolio for the challenges that may need to be dealt with in the New Year.
Among the various asset classes that could potentially play a key role going forward, none sticks out more than physical metals, like gold and silver. Gold has been considered a reliable store of wealth and value for centuries, and may potentially provide a meaningful hedge against a host of economic and geopolitical issues. Gold may possibly offer a degree of protection from inflation, deflation and declining paper currency values, and may offer refuge from a stock market crash or bear market.
Adding this important asset class to your holdings has never been easier than it is today. Speak with an Advantage Gold account executive today 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 to invest in physical gold using your IRA account.
Don’t wait for the next major economic or geopolitical crises, or for stocks to come crashing down 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, dollar index, dollar weakness, gold, north korea, overvaluation, stock market downturn