Sponsored Content - The doubters will doubt. The haters will hate. Despite them, gold has done its job for over 5,000 years now, says Rich Checkan, president & COO, Asset Strategies International.
- Gold is cheap
- Gold is hated
- Gold is a screaming value
Despite the hate, demand is soaring. That’s a buy signal if I ever saw one!
I’ve Seen This Before
Right now, the doubters and haters are back at it again. That’s a buy signal, just like it was in the late 1990s…
When I joined Asset Strategies International back in 1996, gold was trading in a range from $250 to $350 per ounce. After pulling back from all-time highs of $850 per ounce in January of 1980, gold was commonly referred to as a barbarous relic. After all, why on earth would you own gold when you could just throw money at any dot.com stock you could find and make oodles of money?
Of course, that was the case until the dot.com bubble burst.
A year or two later, gold began to rise. For the next five years, gold took baby steps forward. It stair-stepped higher, pulled back slightly to consolidate, then moved forward again.
Somewhere around 2005 to 2006, gold touched $750 per ounce before pulling back to $450.
You guessed it. The doubters and the haters emerged. “That’s it,” they said, “It’s over!”
They were wrong. Gold started rising again. By 2007, gold was trading above $1,000 per ounce before correcting to $750.
That’s right. The doubters and the haters came out of the woodwork.
“Get out,” they said.
“Gold’s done,” they said.
If you had listened to them at $450 per ounce, you would have missed out on $1,471 per ounce in appreciation. If you had gotten out at $750, you would have missed gains of $1,171 per ounce.
Here We Go Again
Last year, in a fledgling bull market, gold surged to new all-time highs of $2,075 per ounce.
This move was dramatic and unsustainable. It was fueled by fears of pandemic and the economic shutdowns in response to the pandemic. Gold simply went too far, too fast.
Since then, gold has corrected and consolidated…as all healthy markets do.
The lows touched in the first quarter were below $1,700 per ounce.
I do believe they are now behind us, although another test lower wouldn’t hurt.
Doubters are doubting. Haters are hating.
Buy gold here.
Gold Gets No Respect
I’m dating myself, but I remember watching comedian Rodney Dangerfield say time and time again, “I tell ya, I get no respect.”
Well, neither does gold.
When equities markets plummet, everyone in the mainstream media is out in unison saying you should stay invested. They tell you there is no reason to panic. They suggest you buy more stocks at the new, greatly discounted levels.
Even the newcomer to the block, Bitcoin, gets more respect than gold.
When Bitcoin dropped from $20,000 down to $3,500, all you heard was how great an opportunity it was to buy. Don’t worry that Bitcoin just lost 82% of its value in the blink of an eye. You’ll be fine.
But gold is a whole different ballgame.
Gold can drop 5%, and the chorus of naysayers is deafening.
After 25 years in the gold industry, I think the lack of love for gold stems from a few things…
- Brokerage houses and banks pay the media’s advertising bills. Gold doesn’t.
- Most people don’t understand gold’s role in a portfolio.
- Those who do understand gold’s role, either don’t trust dealers or don’t know how to get started.
Why You Should Love Gold Now
There are two big reasons to love gold right now.
First, sentiment is low. Gold is unloved.
If you look back to my historical examples above, those who gave up on gold at $450 lost the opportunity to gain 327% over the next five years. Those who got out at $750 lost the opportunity to capture 156% appreciation over the next three years.
As we approach $1,800 per ounce, my gut feeling is you are leaving the bare minimum of 113% appreciation on the table…most likely more.
Second, not owning gold leaves you exposed to the whims of the US dollar.
The US dollar is in bear mode. I believe it will get worse before it gets better.
Government spending is massively rising. Tax revenues are down across the board. Money printing is out of control. Government debt has long since crossed the point of no return.
None of this suggests a stronger dollar going forward.
Weak dollars are certain to lead to higher gold prices.
The weaker the dollar gets, the more of them will be needed to buy an ounce of gold. Gold has stored purchasing power for over 5,000 years. When you measure it with something that is steadily losing purchasing power—like dollars, euro, yen, etc.—it takes more of them to buy the same ounce.
Now is the time to buy gold…when the doubters and haters are out in full force, and the weak dollar is cowering in the shadows.
There is no better way to keep what’s yours than to buy gold well…now!
Visit Asset Strategies International to learn more about investing in precious metals and other alternative asset classes.