There are several key factors that will impact the price of gold bullion in 2022. As the US dollar lunges ahead and Wall Street roars, inflation is outta hand with consumers paying a huge premium for the basic necessities. The Federal Government explains with a chuckle the inflation we are seeing is only temporary or “transitory”. Corporate operating budgets for 2022 are estimated to be 20% – 30% higher than in 2021. Time to take 2022 for what it could be: a portfolio bunker buster!
America lacks strong leadership at the top and the world knows it. Beijing and Moscow are licking their chops while we struggle with inflation, pandemic, open borders, lawlessness, division, politics and corruption. At this moment a war looms with thousands of US Service Members being dispatched to Ukraine to face the Russians in Putin’s backyard.
There are 3 fundamental indicators that professional gold analysts pay attention to when trying to determine the direction of gold. (1) US M2 Money Supply Growth – or US MSG. (2) US Price Inflation. (3) Price of Gold as a Percentage of US M2 MSG SUPPLY PER CAPITA.
Gold bullion in the current environment has no downside risk. Gold is currently priced at nearly 3% of the PER CAPITA M2 Supply. With history and technicals as our primary indicators, we expect gold bullion to be a strong defensive strategy for your portfolio in 2022 and beyond.
Because gold bullion coins and bars are manufactured, you should expect higher premiums and slower delivery times in some cases. The “transitory” (inflation) higher cost problem our government speaks of affects all facets of the precious metals industry. With higher demand for gold bullion assets worldwide, we expect periods where finding any gold bullion at all may be tough.
PS. NOW is the time to discuss the Precious Metals IRA.
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Disclaimer: Midwest Bullion Exchange, Inc. is a precious metals broker/dealer and is not a licensed investment adviser. Although we strongly advocate programs that allow you to hold precious metals in your retirement, we cannot predict the future performance of precious metals or programs that allow precious metals. Furthermore, we recommend that you consult with a professional tax adviser when making decisions that carry tax liabilities. Midwest Bullion Exchange, Inc. reserves the right to decline services to individuals after it has been determined the products and services offered by Midwest Bullion Exchange, Inc. are not suitable for the individual. The author has made every effort to ensure accuracy of information provided; however, neither Midwest Bullion Exchange, Inc., nor the author can guarantee complete accuracy. This article is for informational purposes only. Midwest Bullion Exchange, Inc. and the author of this article do not accept any fault for losses and/or damages arising from the use of this publication.