Michael J. Kosares (USAGOLD) An unholy trinity of concerns pushing gold As I suspected might be the case and posted here yesterday, it has been a big day so far in the markets – gold and silver included. At this writing the DJIA is down nearly 400 points; the yield is down on the 10-yr a full basis point at 1.738%; gold is up $40 from Friday’s COMEX close at almost $1199/tr oz, silver is up almost 70¢. This turmoil is being caused by three events in our opinion:
• Iran’s demand for oil payments in euros, effective immediately• Continuing liquidity problems in what we used to call the third world (a now politically incorrect ID but still communicative), most glaringly in China
• Banking sector problems with a keen eye on what’s going on at Deutschebank (the next Lehman Brothers??)
An unholy trinity of concerns. . . . .
PG Note: There are unquestionably rising concerns on a host of fronts that are driving interest in the safest of the safe-haven assets.
Stephanie Yang (CNBC) Gold is gaining the favor of some long-time skeptics The precious metal has outperformed other major asset classes this year, rising 12 percent in 2016. Gold has become increasingly useful to investors as stocks around the world have fallen, said options trader Dennis Davitt of Harvest Volatility Advisors.
“If you’re worried about your equity portfolio going lower, you buy gold as a hedge. If you did that January 1st this year, it’s worked wonderfully,” he said Tuesday on CNBC’s “Power Lunch.”
Sources-usagold
