The mounting government debt and the subsequent rise in interest rates have sent alarm bells ringing in the stock markets. The worst economic crisis in three decades means the worst ever loss of purchasing power for cash savers. Investors again see buying gold as insurance for the possibility of economic catastrophe.
Gold can play a valuable role in offsetting the losses in investment savings and providing an alternative to other forms of long-term income accumulation.
Here are five reasons to buy gold now.
The number one reason to buy gold is the staggering inflation that has surged over the past year to its highest levels in the last 40 years. Strong inflation is driving buyers back into gold again as a hedge tool against inflation.
The number two reason is the burden of the falling purchasing power of the dollar. Gold is considered to have an inverse relationship with the dollar’s purchasing power, and its prices may surge even as the dollar loses its purchasing power.
The third reason is the falling confidence in the Federal Reserve. The consistent hike in interest rates along with no visible impact on curbing inflation has affected investor sentiment and investors are looking towards alternative investment options like gold.
The number four reason is the massive rise in the federal government’s debt levels as well as its ability to repay its credit. This makes the Treasury securities even more vulnerable, with the Federal Reserve being the buyer of last resort for the debt of the U.S. Treasury.
The number five reason for buying gold is the falling value of cash reserves. That’s because stock market volatility and the declining value of the dollar have tremendously hit countless Americans, with some suffering losses in double digits.
This calls for an immediate increase in the investment portfolio for a stable financial future during these uncertain times. So, buying gold can prove to be a safe harbor asset that can even withstand economic fluctuations. Don’t let another minute go by that your Retirement accounts aren’t protected with gold. Call a Century Gold specialist today to discuss ways to safeguard your future.