Gold’s rally past its all-time high in 2020 caught investors’ attention across many markets.
The precious metal is known for being a safe haven, a steady moving asset rather than focusing on dynamic growth, and its 22% gain last year was nothing short of outstanding.
Need we mention that this was during a global pandemic?
More recently, gold has been under some pressure and analysts believe it’s due to higher yields on US Treasuries.
This has caused some stir in the markets- but let us remind you of a famous quote:
“Be fearful when others are greedy, and greedy when others are fearful.” We’re sure you are probably all too familiar with the wise old saying by billionaire investor Warren Buffett.
Truth is, that’s almost the exact market conditions that we are currently facing- and one primary reason why we believe this could be one of the best times to buy gold.
There are many more reasons that support this belief but for the sake of importance, here are the top 3:
It seems like with each new week, there’s a new stimulus package either in talks or being approved.
On top of this, we have Biden’s proposed $2 trillion for economic rebuilding.
But wait, that’s not the end of it. There’s another $2 trillion proposed to decarbonize US electricity in 15 years.
Although there are Americans who believe that former President Trump did not take enough action to combat the coronavirus, he did in-fact approve nearly $4.5 trillion in care packages in 2020 alone.
Combine these numbers with the projected spending numbers that we already have for 2021, and it may feel like we may never get out of debt.
Oh and here’s a “fun” fact…
In the past few months, the Fed has increased our total money supply the most since 1943 with all the new money it has printed.
Gold Being Pressured
A large catalyst driving gold’s retracement since has been the rise of higher yields on US Treasuries.
The recent attention that the US 10-year Treasury yield has gained is one of the vital factors that caused gold’s pullback.
But as we all know, nothing goes up forever. Well, at least not in a straight line.
It’s another reason why we believe that this could be one of the last opportunities to get on board before gold goes on another run-up.
Are you prepared to fight against our rising debt and inflation?