Gold and silver have been under some decent selling pressure in recent sessions. The selling seen in these markets could, in our view, be primarily attributed to low summer trading volumes and some position squaring ahead of the Fed symposium this week in Jackson Hole, Wyoming. The question on everyone’s mind appears to be:
Will The Fed allude to an imminent interest rate hike?
We don’t know the answer to this question any better than you do.
What we do know, however, is that it could potentially present a fabulous opportunity to buy physical gold and silver on sale.
What do we mean by on sale?
Gold has declined recently from around $1380 per ounce to $1326 per ounce as of this writing.
Silver has declined from over $21 per ounce to $18.53 per ounce as of this writing.
Now, it stands to reason that if much of this selling is being driven by longs liquidating ahead of the Fed’s remarks this week, there could be another sharp move lower if the central bank hints a rate hike is just around the corner.
This dip could prove to be an excellent buying opportunity.
The reality is that even if the Fed does hike rates again-whether in September or December-the pace of any additional rate hikes is likely to remain very slow and gradual. Are we likely to see a five percent yield on the ten year note anytime soon? Not likely.
Some might even argue that a 2016 hike by the Fed is not necessary but could be done so the timing between hikes is not too far-which would then beg the question of whether the central bank tightened prematurely in December of 2015.
In our view, it doesn’t matter.
There are numerous issues in plain sight that will come to roost, issues like the Chinese slowdown, Brexit, deflationary forces and negative interest rates.
We do not believe the Fed’s decision regarding interest rates is focusing on the big picture by any means-and as a long-term investor your focus should always be on the big picture.
All the hype surrounding this week’s Fed symposium will come and go, and the opportunity to buy gold and silver at what could be a hefty discount will vanish quickly.
So go ahead and worry about interest rates if you want to. Worry about the “dot-plot,” inflation targets and full employment.
Or, worry about getting your hands on more physical gold and silver at current price levels.
These metals have been considered a reliable store of wealth and value all over the world for thousands of years, and will continue to be recognized as such regardless of another quarter, half, or even multi-point rise in the Fed Funds rate.
If you don’t already own physical precious metals, now may be the ideal time to get started. If you own gold and silver already, now may be a great time to add to your holdings.
Speak with an Advantage Gold account executive today to learn more about the potential benefits of physical gold and silver ownership. Our precious metals professionals are here to answer your questions, and can even show you how to buy and hold physical gold and silver in your IRA account.
Don’t get distracted by all the smoke and mirrors and don’t let this potential opportunity pass you by. Call us today at 1-800-341-8584 to get started today.Tags: advantage gold, Fed, gold, inflation, interest rates, investing, jackson hole, rate hike, silver