Gold prices are under pressure again today, as the metal tries to find a bottom around a six month low. While short-term traders-AKA speculators-may be exiting long positions or even selling the metal short, the patient, long-term investor is likely trying to get as much gold as they can right now.
The globe is currently seeing numerous issues that could cause an explosive situation in financial markets. The potential for a global trade war, rising inflation and further issues in the EU could all have a major impact on global markets. Investors have thus far been able to shrug off many of the potentially serious issues facing the globe. That complacence, however, could come back to bite those investors.
Stocks have remained stubbornly strong as the bulls try to keep the decade-old rally going. Although the economy has improved in all key metrics in recent years, the chances of the next major recession seem to be on the rise. It is not a matter of “if”, but rather “when” the stock market finally reverses course, or even collapses as it did in previous major market crashes.
As stocks have moved higher, gold has moved lower. This trend, however, could be getting ready to reverse course in spectacular fashion. Consider this for a moment: What may have a greater risk/reward at current levels-stocks that could be nearing the end of an aging bull market or gold that has been moving lower and is some 40% below its all-time highs?
Now consider this: What about the investors who bought stocks at or near the lows seen in 2008? What type of return have they seen if they held onto long positions over the last decade?
Real value can potentially be achieved by purchasing assets at a discount. With gold trading at what could be considered a huge discount currently, now may be the ideal time to build a significant allocation or increase existing holdings. For the long-term patient investor, the lower prices go, the better. The key is to keep buying.
Investors can use the power of dollar cost-averaging to potentially lower their overall cost basis over time. This can not only potentially offer higher return potential, but will also provide investors with more gold and the other potential benefits that come along with it such as added diversification, an inflation hedge and possible protection from weakening currency values.
As the bull market in stocks comes to a close, the rally in gold prices may get under way. Current price levels may not be seen again. The time to act is now.
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 build a significant allocation in this key asset class using your IRA account.
Don’t wait for the next major collapse in stocks or for the next major bull market in gold to get take prices sharply higher from current levels. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started today.Tags: advantage gold, gold, stock market collapse, trade war, volatility