Three Reasons Why You Need to Sell Gold NOW

Harry-high-reseaditflippedGold’s latest rally has made the yellow metal the best performing asset of 2016. Its 16% gain has put it well ahead of equities, treasuries, and corporate bonds and has gold bugs excited for a prolonged run up in prices.

But one renowned Harvard economist is saying this recent run-up is lulling investors into trap that could cost them big time.

According to Harry S. Dent, the gold bubble is about to pop… and when it does, it will wipe out trillions of dollars of wealth.

“While many economists will argue that gold is not in a bubble… and insist it will soar to $2,000, $5,000 and even $10,000, my research has said otherwise” says Dent in his latest report. “I’ve never been more certain of anything in over 30 years of economic forecasting.”

Despite the positive outlook for gold after the ECB’s recent stimulus announcement, there are three main reasons why gold could be heading for a major fall soon.

Seasonal Demand From China and India Has Ended

India and China account for half of the world’s gold demand…but much of this demand is seasonal, coinciding with both countries several month-long holiday season beginning in October and ending in February.

Over the past 10 years, we’ve always seen strong performance in gold during January and February… but historically March is when prices start to drop.

To make matters worse, gold is priced in U.S. dollars. As the dollar begins to gain momentum, gold becomes less affordable to foreign investors.

It might look like the sky’s the limit for gold with is recent rally, but the rising prices will continue to slow sales of physical gold and eventually drive down price.

>>Must Read: A Stronger Dollar Could Spell Disaster For Gold Prices

Seasonal Demand From China and India Has Ended

India, the number one consumer of gold, has been dealing with a problem not factored in to many analyst’s projections: The unexpected tax hike on gold imports which adds a 1% sales tax to all gold jewelry sold in India.

In an effort to reduce the country’s current deficit… it appears that the Indian government is attempting to curb the demand for physical gold in favor of paper instruments such as gold-backed bonds that have been recently introduced.

But the results haven’t been pretty.

India’s February gold imports hit a two-year low and gold is being sold at record discounts.

>>Recommended: What India’s Gold Tax Means For The Future of Gold Prices

The U.S. is Headed for An Economic Disaster That Will Make Gold Worthless

Gold has long been the “safe asset” that investors run to as a way to hedge against inflation… but according to Dent’s research, we’re about to see the exact opposite happen.

Dent warns that we are about to experience an economic crisis far worse than 2008 — the full-blown collapse of the stock market and massive deflation.

And when it does, Dent predicts that gold will plummet to $700 turning the market’s safest and most popular sanctuaries into the most toxic investment on the planet. 

>>Related: Not Even Gold Can Keep Your Money Safe When This Happens

And he recommends selling all your positions in gold immediately and stashing your cash in the only “safe” investment left. Click here to watch Harry Dent’s latest report to find out the complete details.

>>Editor’s Pick: How to Get Rich from Deflation