In early action on Tuesday, the gold market is once again on the offensive and moving higher. As the Dow Jones Industrial Average see a drop of nearly 400 points, the yellow metal is up nearly $15 per-ounce. A test of resistance in the $1600 region looks very likely in the sessions ahead.
With stocks potentially on the verge of a major meltdown and gold potentially headed back to all-time highs or beyond, you simply cannot afford to wait any longer. The time to start diversifying away from stocks is now and there may be no better asset class to look to than physical gold.
There are three major issues that could keep stocks moving lower and gold moving higher:
- The Trade War: The U.S. and China both took additional measures this past week in the war on trade. The U.S. implemented 15 percent tariffs on some $110 billion of Chinese goods while China has now said that it will sue the U.S. through the WTO. Clearly, the situation on trade has gone from bad to worse, and there does not appear to be any solution in sight. The longer the stalemate continues, the more significant an impact it may have on the already-slowing global economy.
- Brexit: As British lawmakers return today from summer recess, the October 31st deadline for Brexit is rapidly approaching. British Prime Minister Boris Johnson has already said that any attempts to block a “no-deal” Brexit could be met with a snap election on October 14th. It is unclear just how a “no-deal” Brexit could affect global markets, but the notion of a hard Brexit could keep risk aversion on the rise and any upside in stocks limited.
- Hong Kong Unrest: The situation in Hong Kong continues to garner significant coverage. Protesters recently blocked access to the region’s airport-one of Asia’s busiest-and even vandalized a train station. The large group of protesters was finally broken up by a large police force that arrived in riot gear. There is a lot at stake in the region, and the biggest question now is if China will take action to control the situation. In what some have called the nuclear option, China could elect to send in the People’s Liberation Army to restore order. Such a move could have significant effects and could also keep stock markets under pressure.
Of course, the accelerating global economic slowdown, declining interest rates and other factors may also fuel a major shift in global market dynamics. With so many bullish factors behind the recent rally in gold, there is simply no reason not to build a significant allocation in this key asset class right now. Doing so has never been easier. Don’t wait any longer.
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 an IRA account.
Don’t wait for the next major stock market crash or for gold to take off without you. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: brexit, declining rates, hong kong, market pressure, protesters, stalemate, tarrifs, trade war