Key Divergences Point to Higher Gold

Following some recent declines, the gold market has not accomplished much thus far in 2019. Although many of the so-called “experts” may pounce on this fact, we see it as a significant positive for the market. Not only is it a positive, but it could potentially be indicative of a major rally on the horizon. Here’s why we can count on gold resilience:

Gold has endured a stronger dollar:

Typically, the dollar and gold have a negative correlation. That is to say that when the dollar goes up, gold goes down and vice-versa. Although that may still hold true to a degree, the gold market has shown excellent resiliency in the face of a stronger greenback. The fact that gold has rallied despite a stronger dollar may point to significant underlying market strength. If gold is able to hold its ground while the dollar rises, just think for a moment how it may perform once the dollar rally fades.

Gold has endured stronger stocks and low volatility:

Stock benchmarks recently carved out fresh all-time highs. The equity markets have seen quite the bounce-back from their lows of late last year and further upside could be in store. An increasingly dovish Fed and positive economic data have fueled the latest leg up and stocks could see a significant leg higher before the bottom falls out again. As with the stronger dollar, gold has held its ground while stocks rise and market volatility declines. If gold can avoid moving lower during such a bullish period for stocks, think for a moment how it may perform during the next major stock market collapse or bear market.

All that may be required is patience.

The stock market and the dollar are not likely to march higher indefinitely. In fact, both of these markets could potentially be in the final stages of recent rallies. The effects of tax cuts and government spending will eventually wear off. Corporate valuations will eventually come back down to earth. The economy will eventually fall back into recession. The question is not “if” but rather “when.”

Gold Is Resilient

The gold market has shown it can withstand anything thrown at it and that willing buyers will scoop up the metal on any significant price dips. That underlying market strength will eventually propel the market higher-perhaps significantly higher-and recent price levels may quickly fade away in the distance.

For the patient, long-term investor, now may be the ideal time to start building a significant allocation in gold. Adding this key asset class to your portfolio has never been easier and arguably never more important.

Speak with an Advantage Gold account executive today about the potential benefits of gold resilience and ownership. Our associates are here to answer any questions you may have and can even show you how to build an 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.

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