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Bloomberg/Steven Frank, Vivien Lou Chen and Elena Mazneva/7-25-2020
“The virus has unleashed a torrent of forces that are conspiring to fuel relentless demand for the perceived safety from turmoil that gold provides. There’s the fear of further government-ordered lockdowns; and politicians’ decision to push through unprecedented stimulus packages; and central bankers’ decision to print money faster than they ever have before to finance that spending; and the plunge in inflation-adjusted bond yields into negative territory in the U.S.; and the dollar’s sudden decline against the euro and yen; and rising U.S.-China tensions.”
USAGOLD note: And those are just the most immediate concerns. Sometimes the black swan exposes, even releases, other dangers that have been lying in wait. Perhaps, as many have suggested, that is the case with the coronavirus – perhaps not. Time will tell. On the complacency issue, we are reminded of Benjamin Franklin’s maxim – “By failing to prepare you are preparing to fail.”