The price of gold has retreated some from recent highs, but not by much. It continues to trade reliably in the 1,450- to 1,500-dollar-an-ounce range. The yellow metal has stubbornly held on to an improved level of strength that energized it back in June when the Federal Reserve indicated interest rates would be heading downward. Experts say it’s just a matter of time before another trigger event sends gold prices significantly higher. When that happens, say observers, look for it to potentially double in price. This week’s roundup of news items for serious retirement savers takes a look at one expert’s projection of 3,000-dollar gold.
- Gold may be taking a breather from the strong upward surge that garnered it so much attention earlier this year, but few believe gold’s bull run is anywhere near finished. Most expect gold prices to soar much higher. For justification, these observers point to an economic and geopolitical climate anticipated to be very challenging for mainstream assets and traditional savings paradigms over the next decade. As for predicted gold price targets during this period, some see the metal doubling in value over the next few years. In a recent appearance on Yahoo Finance’s “On The Move,” Paul Schatz of Heritage Capital joined the chorus of voices estimating gold will climb as high as $3,000 “because the climate—the landscape for gold is so hugely supportive.”
- Analysts are pulling no punches in their assessment of what’s driving mainstream financial markets higher amid global economic conditions that are anything but robust. Raymond James Chief Economist Scott Brown recently told Yahoo Finance that Federal Reserve rate cuts have acted “like heroin for the markets” in search of “another fix.” Not to be outdone, Invesco Chief Markets Strategist Kristina Hooper said she “took exception” to Brown’s estimation, declaring the markets view rate cuts as “crack” and “have come to expect” the supply will continue. Now that the Fed has indicated there likely will be no further rate cuts for the foreseeable future, experts are looking for the financial markets to pull back sharply from their lofty valuations in the coming year. Prudent retirement savers can potentially limit – or even offset entirely – the potential fallout to their portfolios by including physical gold and silver among their assets.
- A recent article by Professor Tony Walker in The Conversation says that even though 2019 has been “the most disrupted year in global politics” in decades, 2020 is poised to be “worse, and bloodier.” Walker says a variety of issues, including the ongoing trade conflict between the U.S. and China, a burgeoning technology war between Washington and Beijing, and an epidemic of social unrest around the world “virtually guarantees 2020 will stretch the sinews of a fragile global order.” Walker even connects the dots on why, in his opinion, the world is much worse off now than it was during the 2008 global financial crisis. The shrill alarm he sounds on worsening global economic and geopolitical conditions represents another cue for savers to be sure their portfolios are protected with safe-haven assets such as physical gold and silver.
- An interest in gold can be fulfilled through gold-backed securities, but do they offer the same level of protection as the physical metal? Recently published data on gold-buying trends around the world indicates those interested in hedging their portfolios and protecting their savings have a lot more faith in physical gold to get the job done. Although mainstream financial media often focus on gold exchange-traded funds (ETFs) when discussing the yellow metal and ETFs have a reputation for being easily purchased, it seems defensive-minded savers are interested in much more than transactional ease when it comes time to buy. For a closer look at what’s behind the strong preference for physical gold over securitized gold, including why one investment bank says the world’s ultra-rich strongly favor physical gold to protect their private portfolios, read Augusta’s latest blog article here.
At what point could we see gold resume the strong upward momentum it displayed during much of 2019? No one knows for sure, but certain conditions are improving that are conducive to significantly higher gold prices. Here are just a few of the reasons gold’s outlook is so good: ever-rising global debt, geopolitical fractures, a seemingly endless trade war and the possibility that the Fed will stop feeding markets with ultra-loose monetary policy.
Are you in a position to capitalize on precious metals’ potential? Not if your portfolio is without physical gold or silver, potentially a gold IRA. Call Augusta Precious Metals at 800-700-1008 or visit Augustapreciousmetals.com for more information. When you call, ask the Augusta representative about participating in our free, live Profit & Protect Web Conference. This presentation shares why the odds of long-term retirement savings success are stacked against you, as well as what you can do to regain control of your portfolio and put those odds back on your side. Call today to learn more.