The gold market recently powered to a 6-year high as the notion of a dovish Fed and easy money policies gained further steam. The market saw a buying frenzy take prices straight to the $1450 region, a level which, if breached, could signal a much more significant upside rally.
The market may simply be getting started in the early stages of the next great bull market which could take prices back to all-time highs near $2000 per-ounce and well beyond.
There are numerous factors that are likely to keep gold moving higher and they are just the beginning. While any one of these issues could keep buyers motivated, the combination of them together could quickly push the price of gold to $5000, $10,000, even $25,000 per-ounce or more.
A Dovish Fed:
The fed has already let the cat out of the bag and will lower interest rates this month. Although markets expect a 25-basis point cut, a cut of 50-basis points cannot be ruled out. Either way, this may simply be the first in a series of cuts that could eventually lead to a fresh round of QE.
A Weaker Dollar:
The effects of recent tax cuts and government spending are wearing off. After seeing significant upside, the dollar seemingly has little left to hold it up. An increasingly dovish Fed will not help the greenback, either, and the market could see some sharp declines as the Fed adjusts monetary policy. Not only that, but a move away from the dollar as the global reserve currency of choice has already begun and is likely to gain further steam in the months and years ahead.
The next global recession could be approaching, and it could arrive faster than many analysts anticipate. Once it does, stock markets will be forced to revalue equities and a significant decline in stock prices may be seen. With stocks still near fresh all-time highs, this could potentially lead to a decline in equity prices of 25, 30, even 50 percent or more before a long-term market bottom is found again.
The combination of the above factors, added to an ongoing global trade war and numerous geopolitical risks, could be the perfect recipe for higher gold prices. The markets and the economy have provided ample clues at this point, and now is not the time to sit idly by but rather to act.
At less than $1450 per-ounce, gold still represents what could be an excellent long-term value. The metal is already knocking on the door to sharply higher price levels, and now may be the ideal time to get involved.
Adding gold to your portfolio has never been easier, and perhaps never more important. Pick up the phone and 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 next major global recession to accelerate or for the stock market to collapse again before acting. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: 6 year highs, dovish fed, government spending, next global recession, tax cuts, weaker dollar