3 Reasons You Should Consider Adding Gold to Your Portfolio Right Now
If you do not already have a significant allocation in physical gold, silver or other precious metals, right now may be the time to seriously consider starting one or adding.
Here are three reasons why:
Stocks are heading lower
The last several weeks have seen enormous volatility in global financial markets. After seeing a sizable decline in equities in late summer, investors are once again seeing strong selling pressure. These pressures are coming from multiple sources currently that include China, other emerging markets, weak commodity prices, the threat of global deflation and more. Stocks could be headed into the next bear market after moving higher the last several years. New economic headwinds and the end of zero interest rates in the U.S. may continue to drive investors out of risk assets and into perceived safe havens such as gold and silver. You can either take steps now to try to diversify and insulate your portfolio or watch your net worth go down along with equity prices. The choice is yours.
Deflation is a very real threat
Deflation has been the subject of much discussion in recent months in financial media and ongoing weakness in commodities with a lack of price pressures is adding credibility to the argument that the global economy could be headed towards a period of prolonged deflation. Don’t think deflation is a concern? Look at the price of crude oil. Look at copper prices. Look at inflation measures. Prices are not rising and in many cases are falling. Once deflation takes hold it can be extremely difficult to break free from its forces. Just ask Japan; they have been battling deflation for 20 years and still cannot get their economy on solid footing. Their latest answer to the problem? Negative interest rates…
Gold may be resuming a long-term uptrend
Gold prices have been declining since reaching all-time highs of nearly $2000 per ounce in 2011. For the last few months, gold prices have been range-bound – not straying far from the $1100 per ounce level. Gold has shown some strong signs of an upside breakout in recent weeks, however, and has broken higher from this previous trading range. Gold prices finished the day today at about $1140 per ounce and could very well be on their way sharply higher. It’s not too late, however, to get involved. Gold prices are still around 40 percent lower than they were at their top in 2011. If you believe gold will not only return to those previous all-time highs but will exceed them, you can essentially buy gold right now at a massive discount. In our view, gold is very cheap at current levels and represents a real value. The window of opportunity to buy gold at these levels could be disappearing right before our eyes – and quickly. Would you rather buy gold at $1140 an ounce or $2000 an ounce?
Now is the time to take action…
Adding physical gold – the kind you can touch and feel – to your portfolio has never been easier than it is today. While you can buy gold and have it delivered to your door within a matter of days, your IRA may be the perfect vehicle to begin investing in physical gold. Buying gold and other precious metals using your IRA may have several significant advantages. To learn about the potential advantages and how easy it is to set up a gold IRA, speak with an Advantage Gold representative today. Don’t wait for lower stock prices and sharply higher gold prices. Explore your options now.
Talk to an IRA advisor about how to roll over your 401(k) into a Gold IRA by opening a self-directed IRA account, contact us or call us at 800-341-8584 today.