As bonds and stocks fall, what’s gone up?
“After a sleepy 2017, stock volatility is back in 2018. But, so far this year, long-dated US treasury bonds have failed to provide an offset to sharp stock falls. However, one asset has done well, performing its portfolio hedging task nicely. That’s gold. I continue to recommend a meaningful allocation to physical gold (and even more to cash). . . .Whether it’s speculators, investors, jewellery demand or central bank buying, someone has been bidding up gold. As regular readers know, I recommend a holding of physical gold – being bars or bullion coins for two main reasons.”
MK note: Rob Marstand does a good job covering the basics – a solid entry level synopsis on why gold ownership makes sense under current market circumstances.