Six Reasons To Buy Gold In 2016

Jon Alternative Media, Banking, Blogosphere, Economy, Fiscal Policies, Gold, Government, Market Commentary, Precious Metals

‘Betting against gold is the same as betting on governments. He who bets on governments and government money bets against 6,000 years of recorded human history.’ – Charles De Gaulle, Leader of the French resistance during WWII and 18th President of France
SUMMARY
Gold bullion and gold mining stocks have rallied 18% and 51%, respectively, in recent months after a brutal bear market over the last five years.
Given gold’s proven ability to hold its value in the face of rising inflation and reckless monetary policy, we believe it plays an important role in any diversified portfolio.
At Evergreen Gavekal, we believe it may be time to to start initiating or adding to additional gold holdings for six reasons.
Technical trading patterns suggest gold may finally be breaking out into a bull market (we do caution, however, that it appears to be temporarily over-bought). Gold remains out of favor despite the recent rally. The Fed’s ability to hike nominal interest rates is constrained. The overpriced US dollar has limited room to run. Real interest rates are heading lower around the world as central banks get creative. Physical gold may be difficult to acquire in the coming years.

This post was published at Zero Hedge on 02/29/2016.