2017 Getting Off to a Golden Start
Posted By | January 12, 2017
No doubt about it, last year was a roller coaster, although we think most gold investors will look back fondly at the approximately 20% gains seen during parts of 2016. The new year looks quite promising, with gold prices rising two percent during the first week of trading and up five percent from December lows.
We shouldn’t be too surprised at the start-of-year surge in gold prices, because the Chinese New Year in January is an important occasion to give gold bullion as a gift. Typically, increased demand leads to an increase in price. Potential favorable factors for gold include a slightly weaker dollar (making it cheaper for foreigners to buy gold, since it is denominated in dollars), predictions of a faster economy that favors inflation, and growing international uncertainty about the new administration.
As to what will happen in 2017 – no one can say for sure, but the argument for diversification into alternative assets like gold remains strong. Stocks might swoon if Congress doesn’t get its act together, but gold prices aren’t tied to stock prices. And gold has always been perceived as a great hedge against inflation. If President Trump cuts taxes deeply, we expect inflation to rise.
Gold is a favorite investment vehicle of many people. And I just found out that includes Prince, who left behind 67 gold bars in his estate. Each gold bar weighed 10 ounces, with a total value of about $840,000 at the time of his death. Prince was also a big fan of gold jewelry.
Now, few of us are going to accumulate as much gold as Prince did. But that’s no reason not to start. Buying gold every month lets you dollar-cost average, which means you buy more gold when prices are lower, less gold when prices are higher. In this way, your average cost can remain lower than your average price. And from my viewpoint, the best way to sock away gold for the long term is through an Augusta™ Gold IRA from Augusta Precious Metals. Augusta offers the best prices—and the best customer service—in the industry. You can read the independent positive 5-star reviews at Trustlink.org.
If you and your spouse are age 50 or older, you can deduct up to $13,000 a year in IRA contributions. To dollar-cost average, simply purchase about $1,100 worth of gold each month. Your holdings will grow quickly and you won’t have to rely on timing the market. To top it off, you don’t have to pay taxes on your gold profits until you withdraw money from your IRA, and you don’t have to start doing that until you reach age 70 ½. Contact us today to set up an Augusta Gold IRA . The sooner you start, the more you’ll own!
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