Gold Prices Surging Amidst Ongoing Stock Market Turmoil
Gold prices surged this week amidst ongoing turmoil in the stock markets. The political drama in Washington surrounding President Trump has markets on edge and investors jittery. But while stocks saw large daily losses, gold cemented its status as a safe haven, at one point seeing a $50 increase over last week’s prices.
Investors have been wary of political risk that seems to be increasing all the time. From the dismissal of FBI Director James Comey to the assertion that President Trump passed along classified information to Russia’s Foreign Minister, every day seems to bring new stories about the White House. No one knows how things will play out, which has investors worried.
The political machinations in Washington make it increasingly uncertain whether the President will be able to push through major elements of his economic agenda. Given the difficulty he faced in Congress with trying to repeal Obamacare, the future of tax reform, trade agreements, and infrastructure improvements now seem to be up in the air. Markets want to see lower taxes, reduced regulation on businesses, and a sense of commitment on the part of the Administration. The fall in stock markets and the rise of gold means that markets don’t trust that there will be any action on these fronts anytime soon.
The US Economy is Underperforming
Combined with this political uncertainty is an increasing realization of the economy’s underlying weakness. Nearly a decade after the Great Recession, the US economy is still underperforming. Job growth is slowing and consumer spending is decreasing at the fastest rate in years. Wage growth remains low, as millions of workers are still only just making ends meet. The retail sector continues to get hammered, with chain after chain of retail stores announcing decreasing sales and more store closures.
Despite all of this, the Federal Reserve continues to insist that it will maintain its policy of hiking interest rates. The Fed thinks that the economy is doing just fine and that the future looks rosy. But hiking interest rates will slow down what little economic growth there still is, which has investors worried about the future.
It’s no wonder then that investors are turning towards gold. For millennia, gold has acted as the ultimate safe haven during times of crisis. Gold offers a store of value that is unmatched by any other asset. It continues to hold its value against paper currency over time, and during times of crisis it even gains in value.
Now is The Best Time to Invest in Gold
That’s why it makes more sense than ever to invest in gold today. Why wait until the next crisis hits before investing in gold? If you can see political and economic turbulence just around the corner, why not invest in gold right now? By putting part of your savings into gold today, you’ll ensure that you won’t lose big when stock markets crash in the future. And because investor demand for gold will increase substantially during a financial crisis, gold prices will increase too, leaving your financial portfolio better off.
Investing in a safe haven like gold is particularly important for those nearing retirement. The risk of losing substantial portions of your retirement savings is just too great. If your conventional 401(k) or IRA gets hit with double-digit losses like many people suffered during the last financial crisis, you might have to delay your retirement by 5, 10, 15 years or longer. Why take that risk when you could invest in gold today and ensure that at least part of your retirement savings is protected against a stock market crash?
There’s no better time than today to invest in gold. By investing today you will protect your savings from an economic collapse, and you’ll ensure that you will lock in gains when gold inevitably increases during the next financial crisis. You can’t afford to risk your retirement by keeping all of your money in stock and bond markets. A gold IRA is a safe and easy way to invest in gold and get the protection you need to ensure that your savings are protected and that you can retire in safety and comfort.