Steve St. Angelo
Tue, 06/02/2020 – 08:46
The Alchemist/Rhona O’Connell/June 2020
“Gold’s role as a risk hedge, and associated investment activity in the West, has cushioned it from the cataclysmic fall in physical demand in the price-responsive nations in the Middle East and across Asia (which was already underway last year). Its robust performance by comparison with its commodity peers underlines the safe-haven status that has been evident so far this year. There is little reason to expect that element to change in the foreseeable future.”
USAGOLD note: Too, we should probably blend in the return of Asian investors to the gold market once things take on some semblance of normal. This morning we posted an article from a newspaper in India describing “a heavy rush to buy gold” at jewelry shops upon lifting of COVID-19 restrictions.
Image courtesy of Visual Capitalist
Foreign Affairs/Sebastian Mallaby/5-29-2020
“Today, the United States and other advanced countries are experiencing the second wave of an especially powerful twin shock. Taken individually, either the global financial crisis of 2008 or the global pandemic of 2020 would have been enough to change public finances, driving governments to create and borrow money freely. Combined, these two crises are set to transform the spending power of the state. A new era of assertive and expansive government beckons. Call it the age of magic money.”
USAGOLD note: The age of magic money means also an era of nearly unrestricted monetary largesse the effects of which remain to be determined. Common sense suggests that adding a debasement hedge to one’s investment portfolio might be a prudent course of action.
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