Gold: Less a hedge, more a rates play
“In a year characterized by unprecedented market moves, it’s understandable that subtler developments have gone mostly unnoticed. One such development, key for building portfolios, is how asset classes are moving relative to each other. In that vein, a shift worth noting: Gold is now increasingly trading with, rather than against stocks. This suggests that in the current environment gold is less of a hedge and more a play on real-interest rates remaining negative.”
USAGOLD note: As the bard put it, “a rose by any name would smell as sweet” …… Nevertheless, Kosternick makes an interesting observation.
Image: Degussa Goldhandel
Repost from 10-11-2020