Stock markets are sharply higher today as hopes for a U.S./China trade deal appear to be on the rise. The ongoing trade war has been a source of market volatility and significant shifts in sentiment for several months now. Although a deal may boost stocks in the short-term, there are still many major hurdles to an ongoing stock bull market. In fact, given the age of the bull market and the state of the global economy, the market is far more likely to be at or near a major top.
When it comes to gold, whether stocks are able to carve out new highs is irrelevant.
There are several key issues that not only warrant significant ownership of gold, but arguably necessitate it.
- The stock bull will find a conclusion and the next major bear market will get going. Given the lengthy rise in markets, a decline in stocks could be swift and severe. The domino effect of significant selling could potentially lead to a decline of 50 percent or more, erasing much of the wealth that has been built in recent years.
- The dollar is losing its status as the preferred global reserve currency of choice. This trend began years ago and is likely to continue. Nations have already set up swap lines outside of the dollar, and global central banks continue to buy gold as the move away from the dollar gathers steam. A flood of dollars coming back stateside could lead to a sharp decline in the value of the currency.
- Inflation will come roaring back. Although the Fed has failed to spark significant inflation thus far, the ongoing era of easy money could eventually lead to a sharp rise in inflationary pressures. This could lead to a significant price rise that could erode disposable incomes and investment returns.
As these market dynamics begin to take shape, investors could be left scrambling for an alternative.
Hard assets like gold could stand to see significant inflows as the dollar weakens and stocks begin the next major bear market.
Gold has already seen a sharp rise in interest in recent months. That buying interest has propelled the market to the highest level in years. The market appears to be building a fresh base off of which price may continue to trend higher in the years ahead.
Adding this key asset class to your portfolio has never been easier and perhaps never more important. Simply pick up the phone and 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 build a significant allocation using an IRA account.
You can’t afford to wait for the next major stock market collapse or for a sharply weaker dollar to erode your purchasing power further. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: domino effect, global economy, global reserve currency, hard assets, market dynamics, market volatility, next bear market, stock bull