Markets press higher as gold and bonds show correlation

Investopedia/Gordon Scott/11-8-2019

photo of gold bullion bars“A comparison between iShares 20+ Year Treasury Bond ETF and State Street’s SPDR Gold Trust shows that, on a percentage return basis, gold and bonds have tracked each other quite well.”

USAGOLD note:  So what is it that bonds and gold have in common?  We would reduce it to both being a destination for safe-haven capital.  The difference between the two?  Gold is a safe-haven asset that is not simultaneously someone else’s liability.  Bonds, on the other hand, by definition are assets that rely completely on the performance of someone else (and the value of the currency in which they are denominated).

Repost from 11-12-2019

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