The gold market is seeing some solid selling pressure today after the latest non-farm payrolls data cast some doubt on a Fed rate cut this month. Prices have dipped back down to the $1400 per-ounce area and the selling appears to have run its course.
Sharp dips like that being seen today can potentially provide excellent buying opportunities. A dip of $20, $50, even $100 per-ounce is inconsequential over the long run and may provide investors with an opportunity to dollar-cost average.
The bigger picture is positive for gold and could potentially see prices hit $5,000, $10,000, even $25,000 per-ounce or more. There are several factors that could propel gold to such levels, and those factors are already at work. Two of the primary forces behind higher gold include the potential for a weaker dollar and a shift away from it.
It’s no secret that the dollar has consistently lose value over the years. As the greenback declines in value, the purchasing power of each unit of currency also declines. With every dollar buying less goods and services, investors will have to earn more dollars just to break even and far more dollars to get ahead.
Once the current shift away from the dollar really picks up steam, the currency could lose significant value very rapidly. Countries have already begun to shift away from the dollar, and its status as the global reserve currency of choice is becoming less convincing by the day. Other nations have already begun to set up swap lines in other currencies, and that trend may continue.
As countries use alternative currencies as a larger part of their reserves, a massive amount of dollars could find its way back to the states. The sudden and significant increase in supply could fuel a sharp decline in value, and net earnings and net returns would drop.
Such a scenario is not only a distinct possibility but is already taking shape. The long-term decline of the dollar will force investors to seek out alternative assets in order to preserve wealth and purchasing power. Gold stands to benefit significantly as a viable alternative and could see increasing inflows as paper currencies decline.
Although there are many reasons to consider a significant allocation in gold, the tendency for fiat currencies to decline in value could be a major catalyst for higher gold. Because the shift away from the dollar is already taking shape, now is the ideal time to diversify with asset classes that may potentially preserve wealth and purchasing power. As a global commodity that many consider the only true form of money there is, gold may be the ideal asset class to turn to.
Adding gold to your portfolio has never been easier. 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 using an IRA account.
Don’t wait for the dollar decline to accelerate or for stocks to collapse again before taking action. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: alternative assests, alternative currencies, buying opportunities, global reserve currency, price dip, purchasing power