Three Simple Reasons for Higher Gold
Although the gold market has been under some moderate selling pressure in recent months, the future for the metal looks bright-very bright. In fact, you could make the argument that the market has all the reasons in the world to go higher, and very few-if any-legitimate reasons to head lower.
The rise in the yellow metal may not happen today, tomorrow, next week, or next month, but we believe it will continue its ascent in the years ahead and will not only reach its previous all-time highs but will far surpass those highs. A gold price of $3000 per ounce, $5000 per ounce or even $10,000 per ounce is certainly a possibility.
Without getting overly technical, here are three very legitimate and simple reasons the market may head substantially higher over the long-term:
1. Gold Has A Finite Supply
There is only so much gold contained in the earth’s crust. As more of the globe’s gold supplies are dug up and utilized, the supply/demand scenario could see a dramatic shift. If demand were to rise, as we believe it will, as supplies become tighter and tighter, the laws of supply and demand would dictate higher prices to come.
2. Paper Money Fails
Throughout history, fiat currencies have come and gone. This paper money has a strong tendency to lose value over time, eroding your real returns and purchasing power in the process. This makes complete sense given the fact that fiat money can be created out of thin air by central banks. How is such an asset class supposed to be able to hold real value over the long run? Simply put: it can’t.
3. Gold Could Become The Next Global Currency
There has always been talk of gold becoming a de facto global currency, and such a move is not unrealistic. Given its long history as a reliable store of wealth and value and the propensity for fiat currency to lose value, a coordinated move to gold as a global currency is a strong possibility. Even if the world does not simply utilize gold as a currency, there could be a move back to the gold standard in order to achieve monetary stability and maintenance of value.
These are some major issues that could fuel a much larger ascent in the gold market and they are definitely worth considering when planning a long-term investment strategy. After all, what good are great investments and returns if the value of those investments simply declines through currency debasement?
If you do not currently own physical gold, now may be the ideal time to consider an allocation. If you do own gold already, now may be the right time to consider adding more.
Adding these key asset class to your holdings has never been easier than it is today. 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 invest for the long-term using your IRA account.
For more information or to talk to an IRA advisor about how to rollover your 401(k) into a Gold IRA by opening a self-directed IRA account, contact us or call us at 800-341-8584 today.