Where to Hide in an S&P Bear Market?
Are you concerned that the major stock indices may finally correct, leading to the next equity bear market? That’s your call. But one thing is fairly certain based on history; when the next bear market in equities begins, gold stocks will rise.
Below is a chart put together by Palisade Global. The blue represents […]
Many gold analysts fall into the trap of treating gold like a commodity. So they analyze demand and supply to try to determine what the price should be, the same way they would look at copper or lumber.
Here’s the problem with that view. There are approximately 5.5 billion ounces of gold above ground and available to buy today. Nearly all […]
Does it make a difference when you buy gold? There is a saying in the investment community that gold is stronger in the second half of the year. Is it true?
Below is a seasonal chart of the gold price. Unlike normal charts, this seasonal chart illustrates the average performance of an asset price in the course of a year. The […]
To answer the question you need to know what you are measuring against. Cheap against what? Let’s compare it to the world’s current favourite asset…stocks.
Stocks are just off their all-time highs and looking a little tired. Has the stock market topped out? That’s not for us to say. But is it a good time to switch a little of your […]
Today, markets are driven as never before by momentum, not fundamental analysis of the economy and earnings. The key to momentum is what we call the narrative, the story investors tell each other to generate the herd behaviour that drives momentum trades.
Gold is just as much affected by narrative as any other asset class, if not more so. Gold is […]
We all know what a yard is. A pound is also standardized and known. A minute is the same anywhere on earth.
Why do we not have a standard measure for value? Until recently, we did—an ounce of gold. It was the measure of wealth all over the globe for thousands of years. Remarkably, it is still accepted everywhere and it […]
On August 15th, 1971 President Nixon closed the gold redemption window. Until that time, the U.S. Treasury allowed foreign central banks to exchange the dollars they obtained from trade and investment for physical gold. Gold was $43.15 an ounce at the time. Economic stagflation ensued and the gold price soared.
On January 21, 1980, gold closed at $850 an ounce. […]
When Gold Does Well
Gold is essentially a ‘risk-off’ asset. Investors turn to gold for safety when they perceive that risks are rising including financial, economic and currency risks as well as political risks affecting ownership rights such as expropriation, a capital controls and increased taxation. In general, greater instability equals a higher gold price.
Here are the environments that have historically […]