The story of the year in financial markets
“One could be excused for wondering if gold can maintain its pace,” writes Jeff Clark in a Strategic Wealth article, “but how many of the risks that pushed it higher in the first place are gone? Check out the risks that remain around the world and see if it’s really time to reduce exposure – or instead make sure one has enough ounces.” These days, the name of the game is maintaining wealth under extraordinarily difficult economic circumstances. The Stein cartoon above is from another time but it still resonates today.
An argument can be made that the difficulty we’ve encountered has yet to manifest itself entirely on Wall Street and in other financial centers. On the other hand, it has certainly begun to manifest itself in the gold market. “I think [gold] is the story of the year in financial markets,” said Sprott’s Peter Grosskopf in a recent Financial Times article. “Gold has finally come on to Main Street as an asset people actually need to have.”