Gold Continues to Perform as Fed Increases Benchmark Rate

Gold Maintains Traditional Financial Role Making any investment can be a thoughtful enterprise. And it should be. Impulsiveness, overconfidence, and arrogance have wiped out the smartest of investors. Jumping at the bit is no way to handle your nest egg. For example, if Wall Street is touting a public company that, nonetheless, shows weak earnings, you’d probably best steer clear of its stock. You could easily wind up a casualty of a brokerage pump-and-dump scenario.
On the other hand, you could find yourself waiting interminably to make an investment decision. Once you do finalize your due diligence about a stock, a commodity, or a piece of real estate, or any investment, failure to move on what you’ve learned can prove injurious to your financial future. At some point, you either have to pull the trigger or abandon the idea altogether. A wait-and-see outlook is rarely a good idea.
That said, it’s less problematic to invest in gold than it is in most stocks. Gold has a longer history by which to judge when to invest. We know, for instance, that an increase in rates like the Fed initiated just minutes before this writing will most often accompany a decrease in the price of gold. Investors will often lead towards interest-bearing assets.
But in the last couple days, the gold market has already factored in an anticipated increase in the benchmark rate. And while no one can predict an exact price for gold, some international observers feel the glory days of the dollar are pretty much behind us, and the upside outlook for gold is promising after some struggle against additional interest-rate increases later this year.
Georgette Boele at Abo-Amro, for instance, forecasts a gold price of $1,300 per ounce by the end of the year and beyond. Others envision a more ambitious outlook for the yellow metal based on investors’ lack of confidence in the G-20 to ignite positive changes in global growth.
Gold, in this case, takes on its traditional role as a risk-on protector of investment portfolios and retirement accounts. And that’s exactly why you should include gold in your portfolio. It serves as insurance and a stabilizer against an equities market that could easily go haywire on you. Could go down from here? Absolutely! But not by much. In fact, now is the time to dollar-cost-average your purchases of physical gold, whether it moves down or up from today’s spot price of $1,234.00 per ounce.
As we’ve stressed before, don’t wait to buy gold. Buy gold and wait. You’ll sleep better once you’ve done so.
Request more information now or call 800-777-6177 now, and ask to speak to a Fortress Gold Group representative.

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