- October 5, 2012
- Category: News
Gold has gained more than $200.00 per ounce in the past few months, and it doesn’t seem to be slowing down. Before the end of this year, gold has every reason to reach beyond the $1800.00 per ounce mark – given the following three reasons remain constant.
First: Inflation
If you have been following the precious metals markets recently then you know about the newest “open-ended” round of quantitative easing recently announced. This means the Federal Reserve will be purchasing $40 billion in mortgage-backed securities every month to help turn the economy around. This is good news for gold because this debasement of currency causes the demand for safe-haven investments such as precious metals to increase.
We haven’t even seen a full month of growth since the Federal Reserve made their announcement. How much further will gold rise as another $40 billion dollars is force-fed into the economy each and every month? How many more investors will rush to buy the special yellow metal due to its increasing popularity?
Second: Popularity
The demand for more gold has caused more financial planners to educate themselves about the precious metals markets. Investors are always looking to broaden their knowledge, and in the past few years gold has seen some very impressive gains. Yes, the primary fact that more and more investors are buying gold does cause demand to go up, but there still remains another subtle factor at work here.
A slight snowball effect happens as more and more people educate themselves about the gold market. This, combined with added media attention, has caused a new surge of investors to explore this market. With added curiosity comes added demand.
Third: Demand from India
The fourth quarter will see physical demand from India increase, with wedding season upon us as well as multiple festivals.
Why buy gold now? It seems as if gold is at a new high, so why should investors buy it? The reason is simple. Many experts believe gold is reaching a new bottom. It won’t be long before you find yourself saying “I wish gold was still below $1800.00 per ounce.”
Take action today. Start by purchasing gold and protect your wealth through these turbulent times. Call us today and find out how easy it is to roll over or transfer any portion of your existing IRA or old 401(k) from a previous employer into a Precious Metals IRA.
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American Bullion specializes in adding gold and silver to retirement accounts. If you have a question or would like to know more about your investment options, please call American Bullion at 1-800-326-9598 to speak with a precious metals specialist.