Gold futures fell to $1,596.70 today at 11:06am EST. This is the lowest that gold prices have fallen since August 15, 2012 and this may be just the beginning! Ben Bernanke announced the U.S. economy is recovering, easing pressures for more stimulus measures. So what does this mean for gold?
The dollar and gold are pivoting. The Private sector, which is 70% of the U.S. GDP, has absorbed the financial melt down from 4 years ago and is now moving forward. The new government's taxes and regulations will be mostly complete by April 2013 and for the first time in 4 years, the U.S. government and the Federal Reserve will have the incentive to strengthen the dollar. Kitco announced, “the U.S. dollar index is firmer Friday after hitting a five-week high on Thursday.”
Over the next 12 months you could see the end of Operation Twist, the end of QE3, and the Federal Reserve raise the interest rates .25% every 3 months. This would be done over time to prevent from shocking the financial system. By summer, we should see the end of Operation Twist and by the fall, the end of QE3. In winter, the Federal Reserve is projected to raise interest rates .25% every three months until it is over 1%. This is the first time the U.S. Government has incentive to act on the issues with permanent solutions.
At the G-20 meeting in Moscow, Bernanke said that a stronger U.S. growth benefits the world economy. When the economy recovers, the dollar will strengthen and the price of gold will recede. Michael Gayed, chief investment strategist of a NYC investment company, explained to Bloomberg that, “The economy is doing better […] so people don’t want gold.” In a survey taken by Bloomberg, twenty out of thirty-four analysts predict gold prices to fall again in the coming weeks.
If gold prices fall, you will need to act fast. What is your exit strategy?
Exit Strategy for Your Gold
Gold ETFs:
If you own gold ETFs, you should be able to sell them just like you buy or sell any stock. This is the easiest way to get out of gold. If you are looking for other metals that do well when the economy recovers, we can help you reposition your investment.
Physical Gold:
If you want to liquidate physical gold, contact your RCW representative and they can explain the quickest way to liquidate your gold.
Tip: RCW does not charge storage fees to hold your gold until you sell it.
Gold & Silver IRA
If you have gold in your IRA it could take 3 days to weeks to get the gold out of your IRA depending on the company the IRA is held with. If you have gold in your IRA, and are considering selling it make sure you contact your RCW representative and we can help you expedite the process.
Who can you sell your gold to?
RCW can help you liquidate physical gold or IRA gold and we can store it for free until you are ready to sell.
For more information on exit strategies, please contact one of our representatives at 800-347-3250.