It’s no secret that numerous billionaires and finance heavy weights have an affinity for gold.
According to a recent article from Kitco.com, billionaire Thomas Kaplan can also be added to the list. The chairman and chief investment officer of Electrum Group reportedly said in a recent interview with Bloomberg that the gold market is on the cusp of a new decade long bull market. In the interview, Kaplan reportedly suggested that the price of gold could hit $3000 to $5000 per-ounce in the next decade due to economic fundamentals.
The gold market has been stuck in a range from about $1270 to $1,300 per-ounce for several weeks. Although it is possible that the metal could see further declines before rallying, it may not fall much further than recent levels as the current economic and geopolitical backdrop could be considered very supportive.
If the yellow metal were to rally to $5000 per-ounce, it would represent a 400 percent increase in value from current levels. If the metal rallied to just $3000, it would represent a hefty increase in the area of 220-250 percent.
Given the potential for such huge returns, investors must also ask themselves: Is the stock market, which has been going up for a decade now, likely to provide similar upside from current levels? Is the stock market likely to increase in value 2.5 to 5 X from current levels? Of course, the answer is most likely NOT.
The current economic and geopolitical backdrop may not be conducive to higher equity prices.
With the ongoing U.S./China trade war, conflicts with Iran and North Korea and a significant global economic slowdown already taking shape, stocks may have nowhere to go but lower. Not only that, but if investors take an objective look at the potential risk versus reward at current levels, they may determine that now is the ideal time to diversify with alternative asset classes that could take off in the months and years ahead.
Given the potential for a stock market collapse, protracted recession and weaker dollar, there may be no better asset class to diversify with than gold. Not only does this asset class have tremendous upside price potential, but it may also provide an important hedge against a weaker dollar and higher inflation.
Adding this key asset class to your portfolio has never been easier and arguably never more important. Simply pick up the phone and speak with an Advantage Gold account executive today about the potential benefits of gold ownership and to learn more about the important role it may play in the years and decades ahead. 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 meltdown or for the dollar to weaken before taking action. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: asset class, diversify, Electrum Group, equity prices, gold rally, metal rally, price of gold, slowdown, Thomas Kaplan