Has the fiscal cliff crisis been averted? Or are we only placing a temporary band-aid on an already gushing wound? Time will tell as we move into this new year, and if you are a savvy investor you should certainly keep your eyes glued to gold in 2013.
The Federal Reserve is still printing plenty money. Billions of dollars are being generated out of thin air which will only lead to a further debasement of currency. With the Quantitative Easing that began in 2012 and now pushing strong into this year, gold in 2013 should see positive gains. It’s simple economics. As a currency becomes inflated, its value decreases. Investors then flock to investments such as gold and silver to ensure their wealth is protected. Paper money can only hold so much value for so long.
Gold’s Weekly Performance to Turn Around
It’s no big secret that gold has not been performing very well in the past few weeks. As a matter of fact, this has been one of the worst weekly losing streaks for gold in some time. This is largely due to investors being weary about investments during the Fiscal Cliff issue. Now that a temporary fix has been given to this issue, things should get back to “normal” for gold.
What’s been “normal” for gold in the past 10 years has been steady annual gains. The fact is, you would be hard pressed to find mutual funds that have outperformed gold’s track record in the past decade. Now as we look at gold in 2013, many experts believe that we will see gold break out of its slump and start to climb steadily again.
Central Banks Continuing to Buy Gold
According to the World Gold Council, over 97 metric tons of gold were purchased by the world’s central banks in the third quarter of 2012 alone. Brazil doubled its gold holdings and the Ukraine also made heavy purchases as well. We are in no way out of the woods yet in terms of our global economic slump. To help offset this shaky ground, many experts believe these aggressive purchases by the world’s central banks will continue into 2013.
The old adage of “follow the money” rings true here. If the banks of the world are actively buying up tons and tons of gold, wouldn’t it be smart to invest as well? No matter how you look at it, gold in 2013 has plenty of reasons to remain on track for another substantial year of gains.
Call Us Today
If you have yet to diversify your portfolio with gold, we urge you to do so today. Remember, you can roll over or transfer any portion of your existing IRA or old 401(k) from a previous employer into a Precious Metals IRA. The rollover is Tax-Free and Hassle-Free. Furthermore, we do all the paperwork for you from start to finish. Just give us 10 minutes of your time of the phone. 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.