Wondering if now is a good time to invest in precious metals? Yesterday, the Dow Jones Industrial Average jumped to a record Tuesday, finally surpassing its previous high set in 2007. It took 17 months to plunge from its 2007 high to its 2009 low, however it took four years to recoup its losses and finally reach above the previous high.
While a surging Dow typically indicates a recovering economy, not all investors are buying into this recent gains. A recent article on ZeroHedge stated, With CNBC now lost for countdown-able targets (though 20,000 is so close), we leave it to none other than Jim Cramer, quoting Stanley Druckenmiller, to sum up where we stand (oh and the following list of remarkable then-and-now macro, micro, and market variables), namely that “we all know it’s going to end badly, but in the meantime we can make some money.”
Dow Jones Comparison. Then vs. Now
| Oct 9, 2007 | Mar 5, 2013 | |
| Dow Jones Industrial Averag | 14164.5 | 14253.7 |
| Regular Gas Price | $2.75 | $3.73 |
| GDP Growth | +2.5% | +1.6% |
| Americans Unemployed (in Labor Force) | 6.7 million | 13.2 million |
| Americans On Food Stamps | 26.9 million | 47.69 million |
| Size of Fed’s Balance Sheet | $0.89 trillion | $3.01 trillion |
| US Debt as a Percentage of GDP | ~38% | 74.2% |
| US Deficit (LTM) | $97 billion | $975.6 billion |
| Total US Debt Oustanding | $9.008 trillion | $16.43 trillion |
| US Household Debt | $13.5 trillion | 12.87 trillion |
| Labor Force Particpation Rate | 65.8% | 63.6% |
| Consumer Confidence | 99.5 | 69.6 |
| S&P Rating of the US | AAA | AA+ |
| VIX | 17.5% | 14% |
| 10 Year Treasury Yield | 4.64% | 1.89% |
| USDJPY | 117 | 93 |
| EURUSD | 1.4145 | 1.3050 |
| Gold | $748 | $1583 |
| NYSE Average LTM Volume (per day) | 1.3 billion shares | 545 million shares |
Individuals looking to roll over their retirement accounts into Gold could now be looking at one of the best values since the previous high. Gold priced according to the Dow can buy you more than ever.
The Dow Jones
Individuals looking to be add value to their retirement should consider adding precious metals to your IRA. 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 call1-800-326-9598 to speak with a precious metals specialist. American Bullion and it’s agents are not registered or licensed by any government agencies and are not financial or tax advisors.
Sources: ZeroHedge, Wall Street Journal