Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Why Millennials Should Buy Gold

  by    0   0

If you’re a millennial, you should think about buying gold.

Why?

It’s all about the long-term value.

World Gold Council chief market strategist John Reade said in a recent interview gold has tremendous upside potential for years to come. As a a result of its attractive evaluation, gold should be of particular interest to young millennials just starting to build their portfolios.

Millennials are an interesting case study; they are going to be working and investing a long time so you need to think about more than just the short term. Gold is a great diversifier for a portfolio, but it is more than that. It is a source of returns that is commiserate with equities over the last 10, 20 years.”

Reade said rising interest rates may put gold under pressure in the short-term. (Peter Schiff recently made the case that rising interest rates are not bad for gold.) Nevertheless, Reade doesn’t think the world’s economic environment will allow central bankers to sustain a high interest rate environment, particularly due to the massive amounts of global debt.

If we are in an environment where long-term real interest rates are going up, then that will put gold under pressure. But if we are in an environment where global economies, facing a massive wall of debt, are unable to tolerate higher interest rates, then I suspect that interest rates won’t be going up for very long and that, I suspect, will be good for gold.”

Reade said red-hot equities markets are the main factor holding gold back currently, but he doesn’t see this as an issue further along the investment horizon.

When I look at long-term valuations of the S&P 500, I think it is probably not the greatest place to be putting money into for the long term because at these sort of levels, your expected returns are going to be low over the next 10 years. Similarly, I see the same thing when I look at bond markets and yields.”

So, if you’re a millennial investing for your future, you should definitely include gold in your planning. It’s never too early to begin buying gold. Consider a member of gen-x who bought gold in 1990. The price was around $390 per ounce. Today, that ounce of gold is worth around $1,260. That’s one heck of a return.

Of course, even if you’re not a millennial, it’s not too late to buy gold. The same factors that make it an important part of a millennial’s investment strategy apply equally across demographic boundaries.

WhyBuyGoldNowBanner.070815.590

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Fun on Friday: The Government Can’t Even Get Constitution Day Right

Today is Constitution Day. We’re supposed to be celebrating the day the Constitution was signed and presented to the states for ratification. But it’s pretty hard to celebrate because the Constitution is dead.

READ MORE →

CPI Housing Cost Calculation Hides True Extent of Inflation

The government CPI data for August came in slightly under expectations. Nevertheless, a 0.3% month-on-month increase in prices is significant. And a dig into the numbers reveals something wonky. The way the government calculates housing costs drastically understates rising prices and skews overall CPI to the downside.

READ MORE →

Gold’s Growing Role in Healthcare

A couple of years ago, CNBC commentator Jim Leventhal made a pretty astounding comment. When asked about gold, Leventhal said he had no interest in it because gold has no uses as a metal. Of course, this is nonsense. Gold has a wide range of uses in sectors ranging from jewelry to high-tech electronics. And […]

READ MORE →

Federal Budget Deficit Continues Its Relentless Upward Spiral

The US government ran a $170.64 billion budget deficit in August, pushing the total fiscal 2021 budget shortfall to $2.71 trillion with one month to go, according to the latest Monthly Treasury Statement. The mainstream media spun this as good news, noting that the August deficit was 15% lower than the $200 billion spending gap […]

READ MORE →

Incentives Matter: Unemployment Edition

Both Janet Yellen and Joe Biden insisted “enhanced” unemployment benefits weren’t incentivizing people not to work. The numbers prove them wrong.

READ MORE →

Comments are closed.

Call Now