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Market News

5 Reasons To Buy Gold Now

The talk of a recession, interest rate fluctuations, trade wars, currency devaluations, and a political crisis between the parties—it may sound absurd, but these times are often the best for investors to re-evaluate their financial portfolios. Historically, these are periods when a non-traditional investment in precious metals is a more practical investment approach to the US dollar. Recent news headlines are just a few of the reason’s investors are taking a serious look at buying gold. There are several other considerations in the case for making a gold investment:

The Gold Bullion Coins Market

The top-selling one-ounce gold coins across the globe time and again include the American Eagle, American Buffalo, Canadian Maple Leaf, British Britannia, South African Krugerrand, and Austrian Philharmonic. Gold bullion coins are fancied not only by investors and coin collectors but also by the world central banks. As banks and consumers continue to compete in the purchase of gold bullion coins and bars, they also drive prices up and in turn make gold even more attractive while there is time to get it at a fair price.

Forecast For Metals

While the global mining and metals industry has gone through a few years of uncertainty amidst the geopolitical tension and reduced demand for some metals, there is also good news in the fact that gold sales are up. At prices above $1,200 per ounce, (currently above $1,500 per ounce), mines find it easier to stay in business and even thrive. According to Statista.com, gold prices are forecast to increase slightly into 2020. The report, “Precious metals are counted among the most valuable commodities worldwide.” They note some of the significant applications for precious metals involve several key industries: high-tech, automobile, jewelry, industrial manufacturing, and banking. The central banks use precious metals as a stored value to secure and stabilize currencies. A gold investment today based on many positive forecasts may be an excellent safeguard for financial futures.

A World Using Fiat Currency

The world’s current system of government-issued fiat currency, or paper money, appears less stable. While the system has generally served many countries well, history shows it has the potential to fail. With fiat currency, we are usually at the mercy of our system of government, which today operates on shaky ground given the partisan tensions. With a more tangible investment like gold, investors can protect their assets in the case of an economic crisis that would impact our current fiat currency system. A globally consistent, tangible metal with a value that is not solely based on government systems could be a savvy investment move.

Gold Investment / Gold Selloff

Gold investment has many lucrative avenues. A patient investor may use it as a hedge against inflation, keep it for retirement, or store it for future generations. A more aggressive investor may want to sell it off at a profit. Not only that, precious metals can be managed in several varying strategies to meet with any investment portfolio. Investors can enjoy gold in a private storage area at home or pursue a secure remote storage location. A gold-backed IRA is a simple, often tax-free investment for an existing  retirement account. Gold investment is a comfortable hedge against uncertain fluctuations in the dollar and the economy and easily liquidated. Keep in mind, a reputable company is recommended for counseling you in the purchase or sale of precious metals. Just like the support by your investment banker or financial consultant, you need to rely on the advice of experts in the field when making a sound gold investment.

An Investment You Can Hang Onto

When you consider how advancing technologies are transforming our assets and paper goods from tangible to virtual, the idea of gold in your safe give’s peace of mind. Consider that many people no longer physically hold onto a bank statement, a book, a checkbook, or a utility bill, to name a few. Gold investment may be purchased in the same way, or you have the option of holding solid gold in bars or coins in your own hands. In a virtual world, the idea of a gold investment might be comforting. Precious metals have an intrinsic worldwide value that paper money doesn’t have in a shaky  economy. For more information on when and where to buy gold in the format of your choice, contact Reagan Gold Group. Find out all you can about this haven asset for your future and the future of your family. There are so many good reasons to buy gold now.
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Market News

A Trade War Driving The Purchase of Gold

As the US and China trade war unfolds and the stock market ebbs and ows on its heels, there is one certainty: Beijing is clamoring for gold. The China central bank again boosted its gold reserves as it has done regularly over the past eight months. It is reported that the People’s Bank of China just increased its holdings by nearly 10 tons of gold.

Gold Surge In Recent Months

There is no question that gold has surged in 2019 due to the global economic uncertainty, a more relaxed policy among central banks and the Fed, and the impending trade wars. These activities
no doubt play a role in the recent increase in the demand for gold, and thus, the gold price increase that has followed. The last one-quarter-percentage drop in the Federal Funds interest rate also plays a role. As well, China has decreased the value of its currency in efforts to mitigate the tariff situation, yet another action to support a gold investment.

Why Diversification Is Becoming Critical

Some financiers believe now is a critical time in which the country must reconsider a diversification plan that includes more than the US dollar to o set these economic risks. Currency devaluation as a result of the trade war is one key ingredient driving the purchase of gold.

Interestingly, China shows a slow but consistent pattern for increasing its gold reserves without a noticeable disruption in the gold market. It seems apparent they have a strategy for diversification of their monetary foreign-exchange reserves. Overall, the central banks continue to store up gold, pushing demand, and there is evidence this pattern will continue. It is also interesting to note that China is, in fact, the largest worldwide producer of gold, and they can purchase it with their currency.

Worldwide Debt and Gold

In an interview entitled Central Banks Buying Gold As Yields Drop, between Bloomberg’s Lisa Abramowicz and Paul Sweeney, and Frank Holmes, CEO, and CIO for US Global Investors, Holmes comments as to where the US is headed in terms of worldwide debt and gold. “It all depends on the fear index in global PMIs [Purchasing Managers’ Index]…whenever the global PMIs are slowing down, and you get panic with interest rates falling like we’re seeing…that triggers competitive currency devaluation by other countries in the world by lowering interest rates…this triggers what’s called the fear trade, and historically this drives gold. It’s the gold stocks where you make the big gains.”

Holmes goes on to say that central banks are buying more gold as rates drop, especially in countries like China and India, where you see modest GDP growth. These countries are also known to give gold as gifts. Even amid worldwide debt and an ongoing trade war, gold is attractive. It recently reached its highest value since 2013, at $1,519 an ounce, soon approaching the all-time highest price of gold at $1,900 and possibly going up from there.

A Good Time To Buy Gold

With the continual snatching up of gold by the central banks, and before gold surges beyond a record high, this trade war period may be one of the best times to buy gold. The foreign devaluation of currency along with the education in how the central banks and foreign investment competitors are reacting is a strong sign. The weakening Yuan is likely to strengthen the US dollar and lead China to buy even more gold. Now is the time when serious investors reduce their high-risk assets and instead seek haven investments such as precious metals. During a period of global economic uncertainties, gold is simply one of the best diversi cation alternatives to many nanciers. The fact is gold is experiencing a bull market and trending higher each month.

Reagan Gold Group is an excellent, trusted source for your gold investment. Learn more about a gold IRA or gold investment now while gold is a ordable. Get an honest opinion and a genuine hedging opportunity for your investment portfolio. It’s not too late to compete with our foreign investors. Now maybe the best time ever to buy gold.