Although the potential for higher prices is certainly a reason to buy and hold gold, there are several other reasons, perhaps even more important reasons, to buy and keep the metal. While most investors have been fixated on the stock market for the last decade, the gold market potentially represents an excellent value at current price levels. Not only that, but the current state of the economy and geopolitical landscape may also warrant a significant allocation in gold. Below are three primary issues that should make any savvy investor consider an allocation in the metal right now:
- Inflation: It’s no secret that inflationary pressures have been building. Although the core inflation rate remains below the Fed’s desired 2% annual target, price pressures have been ticking higher. The danger may be the Fed-if the central bank falls behind the inflation curve, prices could rise substantially and move well-beyond the central bank’s target. Gold may potentially offer a meaningful hedge against higher inflation, and may retain its value better compared to other asset classes. Of course, it could also rise substantially in price.
- Global debt: After years of ultra-low interest rates and massive quantitative easing programs, the globe is still awash in capital. While the benefits of QE may be highly touted by some academics and yet completely dismissed by others, one thing is for sure: There is a price to pay for cheap or even free money. QE programs have eroded currency values and inflated central bank balance sheets. Mopping up all of this liquidity from the system is no easy feat-in fact, it could send global financial markets into a tailspin. In a world full of debt and weakening paper money, gold represents a true store of value.
- Geopolitical risks: There is no shortage of geopolitical risks around the globe. A trade war with China, U.S./Russian relations, Syria and the Middle East are all potential sources of geopolitical tension that could potentially have a significant effect on global markets. Case in point: Just look at the recent stock market volatility that has been seen as the trade war with China gets going. Consider how further conflict with Iran could potentially affect the crude oil market or how an armed conflict with North Korea could crush financial markets around the world. If any one of the above or other situations flares up, investors may flock to the perceived safety of gold.
Although there are numerous other reasons to maintain a significant allocation in physical gold, the issues outlined above are some of the biggest.
That is precisely why right now may be the ideal time to consider a significant allocation in the metal. Adding physical gold to your portfolio has never been easier than it is today, and a simple phone call can put you on the way to adding more security for your portfolio.
Speak with an Advantage Gold account executive today about the potential benefits of gold ownership. Our associates are here to answer any questions you may have, and can even show you how to buy and hold real gold using your IRA account.
Don’t wait for the next major geopolitical crisis or next stock market collapse before taking action. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started today.Tags: advantage gold, china, global debt, gold, inflation, middle east, qe, russia