What is considered a safe haven can change depending on market conditions, but a few asset classes typically come to mind. In the current financial landscape, there is a growing need for true safe havens.
After remaining calm for most of the summer, precious metals have been on the warpath like they have something to prove. Their move started last month and accelerated with the Federal Reserve’s latest quantitative easing program.
Gold and silver have been performing like they both have something to prove. While some may be quick to label their rise as a comeback story, investors should keep in mind that the safe-havens never truly lost their glitter.
Gold's role of sound money in the financial system has been determined by market participants for thousands of years. Investors seeking a hedge against devaluing fiat currencies and poor fiscal policy often turn to gold, and today’s market is no different.
Although the price action in gold can be frustrating at times and cause dips in quarterly demand, the bull market is still intact as demand continues to increase with the growing need to protect capital with non-printable assets.
The price of gold has been relatively subdued so far this year. Over the past three months, gold has been in a tight trading range between $1,540 and $1,640. However, several well-known hedge funds recently made large moves regarding the safe-haven asset.
Precious metals have benefited from monetary easing programs, but they are now finding out how hard it is to fight central banks. While some people have a love or hate relationship with gold, the precious metal itself is much closer to a lover than a fighter.
On Friday, Rick Harrison from the hit television show Pawn Stars appeared on CNBC. He discussed his pawn shop business and how it performs in the current economy, but his view on profits were very interesting in regards to gold.
Gold is often called the money of kings, but silver will be known as the money of champions come the London Olympics. When athletes receive a gold medal at the Summer Olympics, only 1.34% of it will contain actual gold.