One world, one economy, one potential financial collapse.
A backlash over globalization is poised to rock global financial markets, say analysts, who have redoubled dire warnings surrounding weak world trade, a troublesome British exit from the European Union and a contentious U.S. presidential election.
This may mean profound consequences for the world economy — and an investment strategy that should include gold, silver or other metals as the ultimate harbor in a financial storm.
Cooperation and global trade was at the forefront at the annual IMF meeting in Washington this month that contrasted an elite faith in globalization “at odds with the growing backlash against the inequities it creates,”according to Bloomberg.
Populist pressures are rising to scale back a global economic integration that has resulted from International Monetary Fund and World Bank talks for more than 70 years.
From Britain’s vote to leave the European Union to Donald Trump’s championing of “America First,” the populist uprising threatens to depress a world economy that International Monetary Fund Managing Director Christine Lagarde says is already “weak and fragile,” the British news service said.
The calls for less integration and greater trade barriers also pose risks for elevated financial markets prone to sudden swings in investor whims.
This could result in increased nationalistic sentiment hostile to the outside world in favor of increasing isolation and protectionism as a backlash against inequality.
The anti-trade movement that helped launch the Great Depression has already cast a pall over an already subdued global expansion.
The IMF’s World Economic Outlook last week predicted last year’s 3.2 percent growth would slow to 3.1 this year before bouncing back to 3.4 percent in 2017. Its forecasts for U.S. growth were cut to 1.6 percent this year and 2.2 percent in 2017.
What does this signal for investors?
It means the need to diversify financial assets. At risk during a potential downturn are returns equities, or stocks, fixed-income bonds and money market cash accounts.
Gold and silver, however, serve as an ideal hedge against economic uncertainty. During this year’s metals run-up, gold soared 26 percent, hitting a two-year high of $1,366 per ounce in July. Silver, meanwhile, shot up 38 percent.
Then came a recent slump on the rising strength of the dollar, strong yields on U.S. bonds and concerns the U.S. Federal Reserve would hike interest rates.
Some see fall in the price of gold to $1,254 an ounce this week as a mere price correction, and an opportunity to invest in bullion. According to experts at UBS, gold is trading above its 200-day moving average and pent-up demand in China may prove beneficial, according to CNBC.
We believe the best time to invest in gold or silver is now.
At Noble Gold, we believe in diversifying assets. And that includes putting a percentage of any portfolio into precious metals.
Ideally, that would include rolling over an existing individual retirement account into a gold or silver IRA.
With people around the world rising up against globalization, it only makes sense to safeguard hard-earned assets with physical gold and silver.
By Charles Thorngren
Charles Thorngren is the CEO of Noble Gold Investments and has more than 20 years of experience in financial investments and precious metals.
One of the easiest ways to get started protecting your future is with a precious metals IRA. At Noble Gold, expert advisers will walk you through the entire process step by step. Visit their website to get your free Gold Investors Guide and learn more about the benefits of investing with precious metals.
Article courtesy: Noble Gold