Commodities Analysis by Gary Tanashian covering: XAU/USD, Gold Futures, Crude Oil WTI Futures, SPDR® Gold Shares. Read Gary Tanashian's latest article on Investing.com
is not a risk asset, it is an insurance policy, and the gold mining industry will one day leverage that characteristic
As you can see, the bubble in policy-making, and thus, risk assets, is unbroken. Insurance has not been needed, yet. Why would anyone want to speculate on gold when its relative performance is so poor?The answer is, they wouldn’t. Or more accurately, shouldn’t. Unfortunately, many people view gold as a play in the same casino that houses stock speculation. That is where so much frustration about perpetually under-performing gold stocks comes in.
There has been one righteously bullish period for gold stocks over the last many decades dating back to the 1970s. That period was a brief time during and just after the deflation scare that began in 2000. Thereafter, beginning in 2003 the declining HUI/Gold ratio indicated gold stocks were in a bubble, which dragged on until the crash of 2008 and secondarily, the top in the precious metals complex in 2011.Today there is certainly no bubble in gold stocks.
Eventually, gold’s future post-bubble-out performance to the stock market will act as a psychological, or what I call afundamental for gold mining, as investors flee the bubble in search of gold’s stability on a relative basis. When gold outperforms commodities, especially mining materials and energy commodities, that will act as what I call afundamental, directly benefiting the bottom line performance of the gold mining industry as a whole..
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gold investing tips seniors should knowSeniors considering a gold investment should understand these three things before getting started.
Read more »
Gold IRA vs. gold bars and coins: How to choose the right type for youWhen it comes to gold IRAs and gold bars and coins, each option has its own set of advantages and considerations.
Read more »
Nvidia's stellar results, Jackson Hole in focus - what's moving markets By Investing.comNvidia's stellar results, Jackson Hole in focus - what's moving markets
Read more »
Damian Nowiszewski's profile on Investing.comGet the latest from Damian Nowiszewski, View the full profile on Investing.com
Read more »
Global chipmakers rally after Nvidia posts strong quarterly results By Investing.comGlobal chipmakers rally after Nvidia posts strong quarterly results
Read more »
David Wagner's profile on Investing.comGet the latest from David Wagner, View the full profile on Investing.com
Read more »