Yahoo Finance states that gold has remained just under $1700 per ounce in large part because of so called fiscal cliff worries. It is early 2013, and the president and congress have barely reached an agreement on Bush era tax cuts. With these tax breaks expiring, middle class Americans can expect to pay an additional $2000 per year in new taxes. This news had brought gold down despite the continued weakening of the dollar. However, all is not doom and gloom for gold in 2013.
According to Yahoo Finance many gold investors have waited out the rest of 2012 and sat on the sidelines. Despite the recent bearish trend gold has taken it is likely that gold will be up for the year by a strong 16 percent. If this does occur gold will have gained in value for 12 straight years, an impressive bull run indeed. Buying now at gold’s lower price is a good move, because gold always seems to rebound.
Precious metals do not always act the way we expect them to. For example, the FED recently announced that it was embarking on a new $45 billion stimulus program. This means the dollar will continue to weaken. Gold usually likes this news because it means a hike in inflation is probable. Yet, gold only gained a short-termed modest gain and then fell back because of fiscal cliff worries. Under normal circumstances we would have expected gold to go up and stay there. However, these are not normal times.
Firstpost Investing states that investors should worry more about the impending bond cliff rather than the expiring tax cuts. They believe gold will spike in 2013 while bonds will sink. If this is true then the time to buy gold bullion from Monex, a trusted gold broker, is now before the new gold rush begins. According to Firstpost Investing the looming fiscal cliff is actually part of the solution that the economy must endure the much bigger cliffs that are coming. If the current cliff is bypassed or avoided, the cliffs down the road will only be that much deeper.
The real cliff that endangers us all is uncontrollable government deficits. Some think that 2013 will see a bond and also a dollar cliff. Many investors use bonds as a hedge; however they will not perform well in 2013. In addition, since the FED continues to stimulate the economy we can expect further devaluation of the dollar. This is the perfect scenario for gold to spike upward again in 2013. Physical gold is the best economic hedge against the coming trials and tribulations.
The looming fiscal cliff might only be the beginning of many financial cliffs that await the economy in the future. Investors who used the dollar as a safe haven when the dollar was in a stronger position would have been betters served investing in tangible gold bullion. Gold is below $1700 per ounce; however gold always rebounds and will this time too. You can take advantage of gold’s lower spot price by purchasing gold bullion from monex.con. They have 40 years of gold experience behind them and will help you reach your investing goals.
