Will QE3 happen or not? This seems to be the biggest question on every gold investor’s mind. Some experts may argue that the U.S. Federal Reserve Chairman Ben Bernanke has no choice but to call for another round of Quantitative Easing. If this happens, gold could see substantial gains. However, there may be an underlying issue no one is talking about.
Ultimately, when it comes to the long-term price of precious metals, whether another round of stimulus actually happens won’t make a difference either way.
Let’s take a step back for one moment. Investors seem to be in a “wait-and-see” mode before investing their wealth into gold and silver. There has been a certain form of tunnel vision that is focused on whether or not another round of monetary stimulus will occur. The reality is, there will be countless more of these “wait-and-see” moments to come. All the while, gold and silver have strong indications of continuing their growth independent of these isolated economic events.
It’s time to look at the bigger picture when it comes to precious metals. Yes, one event can cause a price swing in either a negative or positive direction, but these events will always be there – it’s simply part of investing.
Perhaps it’s time to stop worrying over every little sound bite we hear and get back to the basics of investing. Any investment professional will ensure to their clients must do two things:
First – think long term.
Second – diversify.
Gold and silver’s track record have been phenomenal over the past 20 years. Furthermore, demand is still continuing to go up, the economy is on shaky ground, the banks are barely holding on, and investors still see precious metals as a safe-haven investment. All of these are excellent factors as to why investors need to leave the “wait-and-see” game behind.
If you diversify your investments solely amongst businesses and corporations, then it’s time to take a different approach. If hard, physical gold and/or silver are not part of your diversification process, then it may be time to revisit exactly where your wealth lies.
It’s time to stop this “wait-and-see” behavior and ask yourself a very basic question…
“How much do you think gold will be worth in 20 years?”
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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.