Why Gold Could Soar Another 353%
Gold is on the rise again…
It’s climbed for two straight weeks, and it’s now up nearly 5% since December 15.
Many precious metals investors couldn’t be happier about this.
You see, gold stormed out of the gate last year. It had its strongest first quarter since 1986. By the end of June, it had risen 25%. Things were looking up.
Then, the market changed course. Gold plunged 18% in just four months. Last month, it hit its lowest level since last February.
• The sharp pullback spooked precious metals investors…
But regular Dispatch readers knew that gold would rebound.
After such an explosive start to 2016, it was only natural for gold to “take a breather.”
As we often remind you, gold’s a safe-haven asset. Investors buy it when they’re worried about the economy, financial system, or politics.
And right now, investors have plenty of reasons to be worried, even if some are still enjoying the “Trump Honeymoon” phase.
• Louis James thinks gold will keep rising…
Louis is our chief resource expert. He is the editor of International Speculator and Casey Resource Investor, our advisories dedicated to resource stocks with big upside.
According to Louis, gold has struggled recently because investors expect interest rates to rise. They have good reason to think this, too.
After all, the Federal Reserve just raised its key interest rate… but for only the second time since 2006. It also said that it plans to lift rates three more times this year.
Conventional wisdom tells us that this is bad for gold. Since gold doesn’t pay interest like a bond, most investors don’t want to own it when rates are rising or are likely to rise.
• According to Louis, the market has already “priced in” higher interest rates…
This means gold shouldn’t fall if the Fed sticks to its plan and raises rates three more times this year.