U.S. Investors are on edge following last week’s and today’s sell-off in stocks around the globe. The carnage impacted equity markets in Asia, Europe, and the U.S. Interestingly, the U.S. dollar also weakened. And bonds and gold are getting most of the safe-haven buying.
The Dutch central bank said Friday it is repatriating some of its gold reserves from the U.S., making it the latest central bank in Europe to address public concerns about the safety of its gold in the wake of the eurozone debt crisis.
The recent drop in the price of bitcoin has reminded many industry participants, particularly those that arrived within the last year, of the inherent volatility associated with new, immature and illiquid markets.
Actual real world experience, evidence and academic research on the gold market are frequently ignored in favor of the simplistic and often the misleading. This will change in the coming years when there is a realization as to the importance of gold as a diversification and as a means of preserving wealth.