Gold prices have slumped to a 12-month low, as investors remain hungry for risk and as stock markets continue their ascent back towards previous highs. Although gold has been lacking any significant, bullish catalyst in the short-term, the long-term outlook for the metal looks as bright as ever.
Some of the most successful investors seem able to recognize value, while also having a knack for identifying market turning points. These investors understand the notion of market cycles and understand the importance of going against the crowd when necessary.
Just as investors who began buying stocks as they bottomed out in 2008/2009 have enjoyed a significant ride higher, investors who start building significant allocations in gold right may also potentially enjoy a multiyear bull market that has the potential to take gold prices to or even beyond previous all-time highs.
Talk about buying low and selling high: The gold market is some $40 off its previous all-time highs, while stocks remain close to previous records. If one is to step back and take an objective look at current market conditions from a risk versus reward standpoint, the gold market may potentially offer a much better risk versus reward at current levels.
Stocks have been moving higher for a decade now as gold prices have been drifting lower. Although anything is possible, one could certainly make the argument that stocks do not have another 20, 30, 40% or more gain left in the current rally. Gold, on the other hand, could possibly see a massive rally that could bring gains of 30, 50, even 100% or more.
Although investors have chosen to simply “ignore” many of the issues that could be considered significantly bullish for gold, these issues are not going away anytime soon. A long-term downtrend in the dollar, rising inflation, geopolitical issues and sovereign debt levels could all fuel the next major bull market in gold and other metals. Although it is difficult to tell when such a rally may begin, at some point the bull market in stocks will end and investors may be seeking out alternative asset classes in which to put capital to work.
It is difficult to argue that there is any other asset class that may potentially provide the numerous possible benefits of physical gold ownership.
If you are interested in finding the best potential value for your money and are focused on the long-term health of your portfolio, now may be the ideal time to build a significant allocation in gold or to add to existing holdings.
Adding this key asset class to your portfolio has never been easier than it is today, and those willing to buy and keep this asset class may potentially see significant rewards as market dynamics change in the years ahead.
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 take advantage of an IRA account to build and maintain a significant allocation in this key asset class.
Don’t wait for the next major recession or 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: advantage gold, bullish catalyst, gold, rising inflation, stock market rally, value investing