Why is Gold Rising ?

Gold and Silver have both been in the spotlight in recent weeks as the Fed flirts with lowering interest rates once again weakening an already not so strong dollar , Bond yields aren’t looking very attractive as they’re becoming negative , A stock market that’s sitting within 100 points of its all-time high, Tensions with Iran that have escalated into a near military strike against the Russia friendly country , and in case those reasons don’t make investors nervous : The Central Banks are buying more gold than any other time in their history . It’s becoming increasingly easy to find Gold as being extremely bullish.

I can’t say that enthusiasm isn’t rightly justified. With the Fed giving the expectation that the borrowing cost could fall below zero, not to mention we’re sitting on a deficit of over 22 Trillion Dollars. There is another scenario that could also cause investors to flee from the marketplace. The financial institutions are expecting at least two rate cuts this year, and the market is factoring closer to three. What if these cuts don’t happen this year?

The old saying “Buy low and Sell high “seems to be a thing of the past. We’re living in a time where the risk vs. the reward is highly leaning to team risk which is precisely why we’re seeing so many new investors and institutions begin to stockpile gold before the prices start to reflect the lack of faith the general public is beginning to have in our financial systems. Citi Group, along with numerous other banks have publicly stated they expect to see the gold rise as high as $ 1600 over the next several months.

As with anything that makes a dramatic increase suddenly, there is undoubtedly going to be some resistance and pullbacks, but the long-term trend seems to have a very bright future. When I was growing up, my father used to tell us, children, that “It’s better to be safe than sorry.” That Golden rule has never been more valid than in the coming months. Could the market continue to stay moving forward for some time longer? Sure. There is no map of exactly when the house of cards will come crumbling down, but it’s safe to say that when it does, you’ll be much better off by diversifying into the world’s most extended lasting currency. Call 855-423-4653 NOW and talk to an account representative to discuss what’s the safest route for you and your family!