Gold Offering Opportunity Of A Lifetime For Investors? These 3 Factors Say So

March 25, 2015

No matter where you look, there is a significant amount of pessimism towards gold. The financial news claims the yellow metal isn’t worth looking at, journalists are trying to convince readers that gold is useless, and big investment houses claim prices are headed downward.

Contrary to these popular beliefs, I remain as bullish as ever; I believe gold is presenting an opportunity of a lifetime.

I say this for three main reasons: uncertainty in the global economy, the growing anti-dollar movement, and the reckless behavior of central banks.

Uncertainty in the Global Economy

Let’s face it: the global economy is slowing down. If you were hoping the U.S. economy would be able to avoid the entire global growth issue or even fix it, this is simply delusional thinking. As it stands, major economic hubs are struggling and there’s not much the U.S. economy can do.

Take China, for example. The second-biggest economy in the world is barely growing. In 2014, it grew at the slowest pace since 1990; this year, it’s expected to slow down further. Not good.

The eurozone remains in trouble, too. In fact, there’s a significant amount of buzz regarding the common-currency region breaking apart. The bigger eurozone-member nations, like France and Germany, continue to show dismal growth. Meanwhile, debt-infested nations like Greece, Spain, Portugal, and Italy remain in the same condition, if not worse.

How does this make me bullish on gold? It’s simple: an economic slowdown causes uncertainty, which leads to panic and the desire for safety—they’ll find that in gold.

The Growing Anti-Dollar Movement

If you have been following the news closely, you may have noticed more and more countries are trading in their local currencies. Trust in the U.S. dollar is dwindling.

For instance, China is in the midst of forming an investment bank that would go up against the International Monetary Fund (IMF) and the World Bank, both U.S. dollar-dominated institutions. It’s gaining traction and major countries like Germany, France, and Italy have joined.

Countries have also been creating agreements between themselves to trade in their own currencies, rather than the U.S. dollar.

As the U.S. dollar loses popularity, its value will decline and investors will seek out safe-haven investments—enter gold.

Reckless Behavior Among Central Banks

Currently, the “official” numbers claim there’s no inflation. As a result, investors are selling gold, since it does horribly in times of low inflation.

But while inflation isn’t currently an issue, investors are completely overlooking what’s in the books long-term.

Central banks around the world are behaving recklessly, printing without remorse. Mark my words: all this money printing will lead to higher inflation. Remember, when there’s too much of something, its value declines. As more money is printed, inflation will pick up and gold prices will rise.

Where’s the Gold Price Headed in 2015?

Remember 2009? I do: the consensus was that stock prices would decline. In the midst of it all, a bottom was made and we haven’t seen those lows since; instead, we’ve been seeing record high after record high.

I believe gold is in a similar situation. Gold prices are down and everyone is negative towards the precious metal, but as the above factors continue, gold will rise in price.

In my opinion, the best opportunity is with miners; they have improved their operations and are in much better shape now. The best part is that miners will see a massive increase in value if gold prices rise just 20%–30% from their current levels.

For more insights visit Profit Confidential.

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Courtesy of http://www.profitconfidential.com

 

In 1934 President Franklin Delano Roosevelt devalued the dollar by raising the price of gold to $35 per ounce.