Gold rallies for a sixth day as equities crash and burn around the world

Posted on 24 August 2015 with no comments from readers

gs12

Gold was the only standout winner on Black Monday with prices initially dipping a little but then rallying for a sixth day in a row to $1,170 an ounce at the time of writing, almost $100 up on the low earlier this month.

Any thought of the Federal Reserve raising interest rates next month, or anytime soon, were surely thrown out of the window with the crashing noises in global stock markets from Shanghai to London and other European Capital and lastly Wall Street.

False prophets

Bears who bought that argument from Goldman Sachs about rising rates being bad for gold just have to concede that therefore if rates are not going up then gold prices probably are going up. Then again when did Goldman ever call the gold price right. It’s got the worse gold forecast record of any major house. Gold’s going up.

And it’s not just because of that ridiculous argument – gold prices have actually gone up on the last for occasions that the Fed raised interest rates – has been trounced. Investors are suddenly fearful again and worried about the competence of central banks and bullion is an insurance policy as well as a safe haven.

Those who thought gold was in a short-term rally driven by short covering – some called it a ‘dead-cat bounce’ – are also looking a bit sick today as prices rock-an-roll again.

Global financial markets are clearly into a profoundly structural change and that could leave the previous dogs of the markets having their day while the former stars crash and burn. Step forward precious metals.

Times have shown the worth of precious metals and also how perfectly they work with other assets of the market like the cryptocurrencies. Investors desiring a better output should diversify their portfolios and also look for alternative investments. Cryptocurrency trading is gaining popularity and ease with revolutions like the Bitcoin Loophole trading software . Investors should without doubt utilize this more often.

Next stop?

Contrarian thinking is back with a vengeance. Where’s it all going to end? With much lower share prices and a much higher price for gold and silver?

Honestly this party has only just gotten started and those gate-cashing at this point still have a lot of fun ahead. You don’t have to stick with equities.

Just push that button and buy some gold and silver to lighten your day!