When it comes to investments, no one can truly predict the future. Still, by looking at trends, current events, and a variety of other factors, it’s possible to get a good idea of which areas are sound, which are more of a risk, and which are likely to yield a profit in the foreseeable future. So what are the experts predicting as the best investment for 2017? For economist Dennis Gartman, it’s gold.
Gold’s Recent Decline
Gartman made several predictions for 2017’s best investment opportunities. He advised that the winter wheat crop makes it look attractive, and that corn would be good in the long term. For his own portfolio, though, Gartman still prefers gold.
For many, this is a little unexpected. After all, gold has been going down for the last few months, and in fact recently went through the worst decline it’s had in 12 years. For a while, experts were predicting that it was on the verge of taking off, and that due to a variety of factors, including being undervalued, it would shoot up to $1,700 an ounce within a few months.
However, the slump has continued. Since the election, the spot price has gone down a full 10%. Now some are predicting that it could even fall below $1,000 an ounce before the year is through. Still, Gartman believes that the current stigma against gold is unfounded. Even when in decline, its current level makes it competitive with other investments, and Gartman doesn’t see it dropping much below $1,125 an ounce anytime soon.
Gold as a Long Term Investment
If you’re a day trader looking to make a quick profit, then gold probably isn’t the avenue you want to pursue right now. Then again, the precious metal has never been the path towards instant wealth—at least not since the gold rush of the 19th century.
Rather, gold is a long term investment strategy. It may spend a few months declining in value, but over the course of a few years, it tends to maintain its overall worth. Unlike cash, which is subject to inflation, gold is a physical commodity, whose worth naturally increases over time.
This is what makes gold a perfect investment to help you save for retirement. Put your money into a gold IRA, and it appreciates over the next 10, 15, or 20 years. Then when you’re ready for it, you can reap the benefits.
In the meantime, the decline of gold prices can actually be seen as a good thing. Dennis Gartman believes that the current price is around as low as it’s going to get. That means that now is the perfect time to buy it. Build up your gold IRA now, while the price is low. Then, over the next few years, it can gradually increase in value, maximizing your profits.
If you’re looking to get rich quick, then gold is not the investment for you. Then again, the ones that CAN make you rich quickly also carry with them a lot more risk, and are more likely to make you lose everything than turn a profit. However, if you’re in it for the long haul and want to start building your nest egg, including a safe haven to protect against failures in the stock market and other investments, then gold is exactly what you’re looking for in 2017.