At what point do investors capitulate and fight for gold?
|Gold
While Gold has continued to retreat, I personally remain a steady buyer. It is after-all, real, unlike crypto.
The investment world is increasingly alarmed at the deterioration of the global economic climate and this has lead to severe bouts of deleveraging across many markets including Gold.
However, just as we have seen in the case of black gold, these sell-offs can represent excellent long term investment opportunities. And perhaps more importantly, a valuable safe-haven trade.
Broad inflation is going to remain high and this is historically not a good time to be buying Gold, but this is the first time rampant inflation has actually been a product of supply side challenges generating a simultaneous significant economic down-turn.
So things could turn out very differently this time.
With the overdue demise of cryptos, once oddly touted as a safe-haven alternative, the return to the US dollar has been head long. Perhaps soon to Gold again too.
It may well turn out in coming months to be a battle of the top two safe-havens of all time, Gold and Greenback. I would think both will be winners against most other markets.
Hedging long in both Gold and Greenback is advisable, if you are concerned about current geo-political developments and the rapid slowing of the world’s major economies.
Things get a lot worse before they get better.
At what point do investors capitulate and fight for Gold? Probably when the US and other property markets begin to join stocks in their quite relentless southern march.
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