There’s clearly plenty of momentum. And gold will probably re-test the 2015 high of US$1,307 per ounce this week. If this happens, Aussie gold stocks should benefit.
Gold has thrived on the ‘wait and see’ approach by central bankers this year. Obviously, economic uncertainty has grown.
At times, gold behaves like a commodity. It tracks the ups and downs of commodity indices. At other times, gold is viewed as a safe haven investment.
Why should gold bugs keep an eye on crude? Because gold’s near-term future will be affected by the continuing slump in oil.
Governments and central banks may try to take private gold again. They hate gold because it gives individuals a way to protect against the devaluation of paper money — inflation.
Stocks are the best way to build long term wealth. Gold is great. You should own it. But if you want to make real money, the best place to do it is in stocks.