A Little Tumble in Gold Is Great News for Patient Investors

Gold’s slight tumble from mid-April to mid-May isn’t an alarm bell for investors — historical trends indicate that gold always climbs back to new peaks. In fact, the slight decline in gold is actually good news for patient investors, especially those looking to hold gold assets long term as part of a retirement savings strategy.

What Is the Current Gold Performance Picture?

Over the past two decades, gold has risen substantially, bringing gains in the 300 to 400 percent ranges for investors who held on to assets. That historic performance provides plenty of assurance for individuals today, as gold dropped to trade around $1,218 an ounce in early May. That’s a 4 percent drop year-over-year and the lowest point since March 17 of this year.

In just a few days, though, gold did rally to $1,231 an ounce, which was the trading value recorded on May 12. Instead of selling because of the recent small decline, investors might want to consider buying before gold rises.

Gold Expected to Rise Again in 2017

Economic professionals expect gold to rise again in 2017 and slope upward in years to come. Pending interest rate hikes from the Fed are likely to drive more buyers toward gold, and increasing economic and geopolitical uncertainty always has investors looking for a hedge for their portfolios. Precious metals — even those that rise and fall gently with the passing of time — offer a stable foundation upon which retirement savings and other investments can be built. These types of drivers are often referred to as “fear factors.” Fear of uncertainty or poor economic performance in other markets pushes investors to purchase what they know, historically, has always performed.

Another factor that’s likely to drive increased gold prices is what some refer to as a “love factor.” Other nations, including India and China, buy enormous amounts of gold. The populations of those two countries make up a huge percent of the world’s population, so if they continue to purchase gold en masse, they can easily drive up global prices.

No Better Time to Buy Gold

There’s never a better time to buy gold than the present time. Investors can’t 100 percent predict what will happen in the future, but over long periods of time, gold has always increased in value. Including a Gold IRA in your retirement plans — especially if you’re looking at years of saving ahead of you — is a great way to help safeguard your future.