Time To Buy Gold As A ‘Safe Haven’

Monday, March 26, 2018
By Paul Martin

By: Avi Gilburt
GoldSeek.com
Monday, 26 March 2018

For those that follow me regularly, you will know that I have been tracking a set up for the GLD as a proxy for gold. I believe that the GLD can outperform the general equity market once we confirm a long term break out has begun, and I still think we can see it in occur in 2018. This week, I will provide an update to the GLD. While I have gone on record as to why I do not think the GLD is a wise long-term investment hold, I will still use it to track the market movements.

I want to start this write-up to dispel the notion of the metals being a “safe haven,” as many in the media are now parroting. I have discussed this topic many times in the years I have been writing, but I just want to set everyone straight on this issue as it rears its ugly head yet again.

Every time the media sees the metals rally when the stock market declines, they begin to parrot the ridiculous claim that the metals are a safe haven for market volatility. Anyone who makes such a claim knows nothing of market history. If they did, they would not ever make such a claim.

In fact, I am so disgusted when I see advertisements trying to sell gold to the public by striking fear in the public regarding an “imminent stock market crash,” for which you should buy gold to “protect” your assets. Nothing could be further from the truth, especially if one is interested in the facts, rather than the propaganda of fear being promoted by Wall Street analysts, article writers, and sellers of gold.

Now, don’t misunderstand me. I am a huge metals bull. But, I buy metals because I see the potential for a multi-decade bull market about to take hold, not because I see a massive stock market collapse (which I don’t right now). I also don’t prey upon investor’s fears in order to convince them to buy gold, because, believe it or not, I expect for the equity markets and metals to continue to rally together. Yes, you heard me right.

I have not seen a single one of these “doom” articles note this fact, but the metals and the miners have seen one of their strongest rallies in the first half of 2016, and it was alongside a strong rally in the equity market as well. If you don’t believe me because you have bought into all you have been sold about how they trade inversely, then I suggest you look at the two charts side by side in the first half of 2016.

You see, the metals rallied quite strongly in early 2016, and we did not even have a stock market crash. In fact, as I warned would occur in late 2015, they rallied together. I bet many of you did not even think this is possible. Now, after you pick your chin up off the floor, you should also realize that this is not the first time this has occurred, nor will it be the last.

The Rest…HERE

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