In a recent article by MSN Money, Anthony Mirhaydari makes the case for why Gold values may begin gleaming again. Here is a quick recap of some of the main points in his article.
1. Even with the Dow at a new high, under the surface, there are signs that insiders are pulling back and looking for alternatives.
2. While emerging market stocks, which tend to act as a leading indicator for U.S. issues have been sliding lower since January. Gold and silver, after being neglected since September, are starting to creep higher.
3. The stars may be aligned for a rebound in the precious metals. Precious metals can move according to multiple catalysts, they respond to financial and political turmoil, they are also seen as an important hedge against inflationary pressures. Here are a few of the upcoming catalysts that may be poised to turn in gold’s favor.
- Elections in Italy are strengthening the cause of anti-Eurozone politicians.
- The eurozone debt crisis is poised for another flare up from the likes of Spain and France.
- The upcoming budget battle in Washington over the debt ceiling and government shutdown later this month.
- Inflation is creeping higher on elevated gas prices, falling labor productivity, and higher housing prices.
- With the Fed pushing inflation-adjusted interest rates deeper into negative territory, prices are set to drift even higher and thus weaken the dollar.
Anthony’s bottom line: Even if the dollar stabilizes, the lift from inflation and a return of a modicum of fear to this manic market should reignite the love affair with gold and silver, and the related mining stocks after so many left them for dead.
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 1-800-326-9598 to speak with a precious metals specialist.