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Sunday, June 20, 2021
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There are Good Reasons to Buy Gold Now

#gold

$XAU $GLD $USD

The precious Yellow metal has been trusted by investors for centuries for its ability to safeguard wealth and protect their assets“– Paul Ebeling

Below are some good reasons to buy gold now, as follows:

Should Congress approve more massive aid/relief/stimulus packages on Top of the trillions the government has already spent over the past yr and the T waiting in the wings, there will be a huge outpouring of money entering the US economy.

Aid/Relief/Stimulus spending has been beneficial for gold’s price, and this time will not be different. With trillions of USDs of new money entering the financial system, a lot of it will end up being invested in gold, helping to boost the price. And as the effects of all that money begin to be felt, more and more investors will likely turn to gold to protect the value of their investments boosting gold’s price more.

A Key effect of this newly created money is inflation. Figures for various money supply measures have spiked, growing at exponential rates far outpacing those of any previous recession or economic crisis.

The Fed is determined to boost prices that it is allowing these trillions of dollars of new money to enter the economy completely unchecked.

As with any injection of money into the economy, the effects are not always seen immediately.

Prices will start to rise slowly, particularly if inflation expectations remain low. But as prices for food, fuel, and other staples begin to rise, and as more households begin to feel the pinch, inflation expectations will begin to rise. Causing The People to consume, stockpiling food, water, paper products, and other consumables to protect themselves against rising prices.

That additional consumption will further drive up prices, causing a feedback loop of ever higher prices. And as long as the federal government continues spending and pushing newly created money into economy, there is no telling what will happen to paper money’s value.

Gold has long protected investors against inflation and its effects, and its price growth can often outpace the rate of regular and hyper inflation, particularly during times of economic distress.

Also, Gold is a tangible asset, and that can play a Key role when it comes to the chaos caused by inflation.

To many investors, there is nothing as reassuring as knowing that there is a tangible physical commodity they have invested in that they can actually put their hands on.

Stocks and Bonds are all traded electronically, and even the cash in your bank account just a number on a screen. But investing in gold often means buying physical gold coins or bars.

One of the ways you can do that is through a gold IRA, which allows you to invest in gold coins or bars through a tax-advantaged retirement account.

If you have a 401(k), IRA, TSP, or similar retirement account, you can even roll over or transfer assets from your existing retirement accounts into a gold IRA, without tax consequences. Thus allowing you to maintain the use of your existing retirement assets, protect them with an investment in physical gold coins or bars, and enjoy the same tax advantages that your current retirement accounts enjoy. And when it comes time to take a distribution, you can take it in cash or in gold.

Right now, gold has pulled back a bit from its all-time highs in August 2020, giving investors an opportunity to invest in gold again before it moves further North again.

At the beginning of Bull markets, many investors are hesitant to buy, thinking or hoping that prices will fall again. But investors who failed to invest in gold at the beginning of the last Bull market had to wait yrs before the gold price dropped again to more attractive marks.

Do not be surprised to see gold shoot up in price, taking out all-time highs and soaring to never before seen marks even as the stock market rises.

With the Biden administration working to weaken the recovering economy, trillions more dollars of aid/relief/stimulus could come, and with it higher inflation, the stage is set for a Gold bull market.

Have a healthy day, Keep the Faith!

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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