Every Rally Comes To An End – Invest In Gold To Reduce Losses

Invest In Gold To Reduce Losses

Investors are predicting a rough year for the stock market in 2018 and a return to a bear market after several years of modest to good growth. Time Money recently featured five grim predictions from major investors, many of whom accurately predicted the stock market crash in 2008 and sold off in time. The main theme: almost every industry is overvalued and entering into a bubble, and with record-high debt, interest rates will go up and governments will have trouble reinvesting in the economy.

When markets show signs of a crash or become prolonged bear markets, investors move their money toward gold. Gold is a safe haven for cash when inflation is high, real returns are negative, and the stock market is in a bear market. Market downturns are a great time to look at the latest collection of gold and silver coins and bars stocked by gold dealers.

#1 No Third-Party Risks

When you buy gold coins and bars that you can hold in your hands, you minimize third-party risks such as executive mismanagement. Look no further than Nortel Networks for an example of how executive mismanagement and irregular bookkeeping exacerbate stock market crashes, turning giants into bankrupts with worthless shares. Paper gold likewise comes with third-party risks, as they’re a promise for gold yet to be fulfilled or even produced, which is why many investors prefer to buy gold bars and coins. You can store them in a safe at home or at the bank, or with gold dealers, although you want to find insured and allocated storage offered by gold dealers.  

#2 Hedge Against Stock Risks

Historically, when the stock market becomes a bad place to keep your money, investors look for safer alternatives and buy gold. In almost every stock market crash since 1976, gold has increased in value, while two of its biggest bull markets came in the years after major financial crises. Investors have more confidence in gold than they have in stocks.

#3 Stay Ahead of Inflation and Negative Returns

While some investment experts argue that high interest rates are bad for gold, it’s the real rate of return that matters. Whatever interest rates are, if inflation produces negative returns, gold maintains your wealth.

But if you’re waiting for the stock market to crash before buying gold, you’re too late. The best time to buy gold is when it’s quiet, as the saying goes, and gold coins and bars that you own and store are the safest bet. You can buy gold coins and bars online from gold dealers like Silver Gold Bull, which makes buying gold online secure and easy. You can order online or call to lock in your gold price and pay by several methods: wire transfer, Interac e-transfer, Bitcoin, cheque, credit card, or PayPal. When you buy gold online, the gold dealer should send your purchase discretely – using a different business name to keep your home safe. If you don’t want to wait for your purchase, use a gold dealer with a large inventory like Silver Gold Bull, which can fulfill customer orders sooner than their competitors. Don’t let the stock market wipe out your investments or your savings. Invest in gold and protect your wealth.