The Market Could Have Further to Fall Before Finding a Bottom
The gold market s lower again today as some surprising economic data has caught the markets off-guard. In recent trade, spot gold was down nearly $7 per ounce at $1454.60 for the day. The market has continued to hold above support in the $1450 area, but another test of this area could potentially lead to a fresh leg lower in value. The market could even look to test the $1400 region before finding more willing, long-term buying interest.
And that is just fine…
The market has seen some significant upside in recent months.
Markets do not, however, typically go straight up or straight down. They tend to move in waves. These waves may be seen as trends higher followed by significant pullbacks followed by a resumption of the original trend. Put another way, the gold market may simply currently be in the pullback stage before resuming its trend higher. If that proves to be the case, the lower the market goes in the meantime, the better. A dip down to $1400 or so could potentially provide fresh buyers with a great value and could also provide them with a quick profit if prices stabilize and start to ascend again.
A long-term investment in gold is exactly that: long-term.
It should not be viewed as a short-term play or trade, but rather a position that you intend to hold for several years or even decades. Just as it has taken stocks a decade to get to current levels, it could take several years or longer for gold to reach $5,000, $10,000 or more per ounce. If it does, however, the patient investor stands to be handsomely rewarded.
Although no one can see the future, successful investing may involve an inclination of what may come around in the months and years ahead. Taking an objective look at modern financial markets and the global economy, it may be difficult to justify a vote against a major global recession, further central bank easing and a weaker dollar. These are three factors that could potentially exert a very bullish effect on the gold market and could potentially act as the major catalyst for sharply higher prices ahead.
The market could have further to fall before finding a bottom. The Chinese slowdown, the weaker U.S. data and a Fed that has reversed course in a short period of time-going from hawkish to dovish-could all point to economic and market challenges ahead. Given these warning signals, and the variety of economic and geopolitical issues currently being faced, now may be the ideal time to diversify with alternative asset classes. Physical gold should be at the top of your list.
Adding gold to your holdings has never been easier, and perhaps never more important. Just 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 key role it may fill going forward. Our associates are here to answer any questions or concerns you may have and can even show you how simply you can build a significant allocation using an IRA account.
Don’t wait for the next official global recession to take stocks sharply lower before acting. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: bottom, diversify, financial markets, global economy, global recession, long term investment, market challenges, physical gold, US data