There are significant signs of strength for gold showing lately. The gold market is higher today, gaining over $4.00/oz. Although that itself may not be noteworthy, it is interesting that gold is climbing today despite some serious headwinds that might normally weigh on the metal.
The benchmark Dow Jones Industrial Average is up over 350 points in early action today. There has reportedly been some solid progress made in the U.S./China trade negotiations that took place in Beijing this week. Officials appear to have at least come up with a framework to base further talks on next week.
This is important for the gold market for two reasons: First, such strength in equity markets tends to dampen investor interest in gold and other safe haven assets. Secondly, the potential for a deal being made is also fueling appetite for risk today.
The combination of robust risk appetite and higher risk assets should weigh on the gold market, but it isn’t. Why?
The dollar index is also gaining ground today. As a dollar-denominated asset class, gold should be under pressure today as the dollar climbs? Why isn’t it?
The reason is simple: The gold market has a strong foundation of underlying strength.
Investors who focus on the bigger picture rather than the day-to-day whims of the stock market realize several things.
- The next recession is coming. Maybe not today, tomorrow or next week, but it is on the way and when it hits watch out.
- The stock market is likely at or very near a long-term top and the risk/reward at current levels simply isn’t there.
- The current U.S. debt level is unsustainable and will eventually result in drastic measures that could see a massive debasement of the dollar.
The gold market has numerous key fundamentals working in its favor that may propel the market sharply higher from current levels. Although it may not happen today, tomorrow or next week, it will happen at some point. Some would even argue that due to the current state of the national debt and the tendency of fiat currencies to weaken over time, it must happen.
In other words, the long-term patient investor stands to be rewarded. The gold market could very well head back to previous all-time highs around $2000 per-ounce and beyond. The notion of $3000, $5000 or even $10,000 per-ounce gold is not only plausible it may be highly likely.
If you take an objective step back and look at the current state of the economy, the geopolitical landscape and the mounting national debt, we think you will agree.
That is why right now may be the ideal time to add diversity with this key asset class. Adding gold to your portfolio has never been easier, and perhaps never more important than it is today.
Speak with an Advantage Gold account executive today about the potential benefits of gold ownership and how this asset may play a key role going forward. Our associates are here to answer any questions you may have and can even show you how to build a significant allocation using an IRA account.
Don’t wait for the next major stock market collapse or for the dollar to weaken further before acting. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: gold market, government debt, national debt, recession, trade negotiations