The gold market remains on the offensive today even as stocks try to recover some of last week’s declines. The stage is set, as the market continues to put distance between current price and the $1500 level and could make a significant run at $1700 or higher in the next few weeks.
The buying frenzy in gold is being stoked by several factors that will likely keep the market moving higher. Here are three reasons why gold is likely to continue its recent ascent and why you need to get involved now:
- The war on trade took a significant turn for the worse last week as China plans to implement retaliatory tariffs on some $75 billion of U.S. goods. The latest move by China comes after President Trump announced that he would raise current tariffs on Chinese goods to 30 percent. Not only do recent developments point to a lack of progress, but the gap between the two superpowers seems to be widening. The trade war can not only increase costs for manufacturers and consumers but could lead to a full-blown global recession.
- The global economy remains on thin ice. Recent data points continue to suggest the global economic slowdown could be accelerating. Weakness in key areas such as manufacturing could continue to weigh on global output, which could then lead to a reduction in hiring and spill over into other areas of the economy. Numerous economic and geopolitical risks could also force consumers to cut back on spending. Ongoing unrest in Hong Kong, the upcoming Brexit and the war on trade could all fuel further negativity for consumers.
- Central banks have already started to act, and the globe could once again find itself awash in easy money. The U.S. recently cut rates by 25-basis points and is expected to cut rates again next month. The ECB is expected to unveil its own bazooka this month in the form of massive easing measures. Other central banks will likely be forced to do the same, and the era of easy money and QE appears to be far from over. Such policies can also inflate sovereign debt levels and erode currency values. As the value of the dollar declines further, it erodes purchasing power and makes the cost of everyday goods and services more expensive.
Stocks have already shown serious signs of cracking, and market volatility could continue to climb.
The next major sell-off in equities could be right around the corner and could potentially see stocks decline by 50 percent or more. The gold market, on the other hand, is being aggressively bought on any dips and could be in the very early stages of the next major, cyclical bull market that could see prices return to previous all-time highs near $2000 or far beyond. It is not too late to get started and doing so has never been easier.
Speak with an Advantage Gold account executive today about the potential benefits of gold ownership and to learn more about the key role it may play 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 the potential advantages of an IRA account.
Don’t wait for the next major stock market meltdown or for the Fed to fuel the next major leg lower in the dollar before taking action. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: brexit, China plans, cyclical market, economic slowdown, global output, market volatility, retaliatory tarrifs, war on trade