There are numerous reasons to own a significant allocation in gold. In fact, given the current economic and geopolitical landscape, it has arguably never been more important to have a significant allocation in this key asset class.
Although the list of compelling reasons to own the metal can be quite extensive, there are three major themes that investors need to consider as economic and geopolitical dynamics shift.
- The economic expansion and bull market in stocks is likely at or near its end. As the global economy sinks into recession, stock valuations could take a significant hit and the market could potentially see declines of 50 percent or more. Given the length of the stock bull market and how high markets have gotten, the downturn could be swift and severe once the dominos start to fall. Once that happens, investors will be looking for viable alternatives and hard assets like gold could see significant inflows and upside.
- The ongoing era of easy money will fuel inflation. Yes, central banks have thus far failed to produce any significant inflation over the last decade. As the global economy slows further, however, central banks have already begun to start easing again and fresh QE could be implemented on a large scale. At some point, ultra-low rates combined with other easing measures could spark significant price pressures. As costs rise, it will become imperative that investors have allocations in asset classes that may keep up with or exceed those price increases.
- The move away from the dollar is set to continue. Other nations have already taken steps to transact outside of dollars, establishing swap lines and other mechanisms to facilitate non-dollar transactions. As other currencies gain in popularity, an increasing amount of dollars could find their way back to the states. As the supply of dollars increases and demand declines, the value of each dollar will also drop. Like inflationary pressures, this will eat away at disposable incomes and investment returns and investors will be forced to seek out alternatives.
Could stocks have more upside left before finally tanking? Sure. Might it take a few months or years for inflation to really take off? Maybe. Is the dollar going to cease being the reserve currency of choice tomorrow? Probably not.All of these issues have been set in motion, however, and at some point, global markets will see serious challenges. That makes now, right now, the ideal time to start planning for major hurdles down the road.
Given its upside price potential, reputation as a store of value and ability to act as an inflation and currency hedge, there is simply no better asset class to turn to than gold.
Adding this key asset class to your portfolio has not only never been more important, it’s never been easier. Pick up the phone and speak with an Advantage Gold account executive today about the potential benefits of gold ownership and to learn more about the role it may play going forward. 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.
Don’t wait for the next major stock market collapse or for inflation to take hold before acting. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: dynamics shift, geopolitical landscape, gold allocation, hurdles down the road, investors, viable alternative