Things May Look Very Different
Investing is an art rather than a science. Keeping the big picture in mind is critically important when it comes to achieving financial objectives. That being said, the time to consider the big picture is now. Forget record-high stock markets and a rebound in real estate values for a moment and consider what the financial landscape could look like in 20, 30 or even 50 years.
With a stock market that has been moving higher for a decade now, some might suggest those getting long equities at current levels are chasing the market. Whether or not the stock market does have more all-time highs in store, it is important to keep in mind just how quickly things can go south.
Those who were enjoying rising stocks heading into the financial crises of 2008/2009 got a rude awakening when the bottom fell out. Many investors who were close to retirement at that point were forced to keep working as the declines in the stock market corresponded with significant declines in their nest eggs. In fact, many of those investors may just now be getting back to where they were financially before the Great Depression.
The point is: Markets have a strong tendency to take the stairs up and the elevator down. The current bull market in stocks has been impressive, but once the bottom falls out again it could take years and years-even decades-for the market to get back to previous all-time highs. Can you?
In addition to an impending end to the current bull run, money itself could take a very different form in the years and decades ahead. Fiat currencies such as the U.S. Dollar have shown a tendency throughout history to lose value over time. Despite the dollar’s ascent over the last several months, the greenback will likely at some point roll back over and continue its long-term decline, lowering purchasing power in the process.
The issue of alternative forms of money has already become an increasingly important issue. Cryptocurrencies have garnered significant attention in recent years as a potentially viable alternative to paper money. Such digital currencies may potentially serve an important purpose in a portfolio going forward, however, hard assets like gold should still make up a significant portion of an overall portfolio.
Gold has been considered a reliable store of wealth and value for centuries, and its finite supply makes it an extremely valuable resource. While cryptocurrencies or other forms of electronic money may provide consumers with a better solution compared to paper currency for basic everyday transactions, hard, physical assets such as gold may play a key role as the backbone of a long-term portfolio.
Unlike the dollar, gold cannot be simply created out of thin air by central bankers, and its value is determined only by the laws of supply and demand.
A potential end to the current economic expansion and bull market in stocks begs the question of where to place significant capital with a long-term time horizon in mind. Add to this the uncertainty of how money may look and be used in the years and decades ahead and there is one clear choice: Physical gold.
Adding this key asset class to your holdings has never been easier. Speak with an Advantage Gold account executive today about the numerous potential benefits of gold ownership. Our associates are here to answer any questions you may have, and can even show you how to harness the advantages of an IRA account while building a significant allocation in this key resource.
Don’t wait for the next major depression, stock market collapse or a weaker dollar before acting. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.
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