‘Bloodbath’, ‘Carnage’, ‘Recession’, these are the phrases in use at the moment as markets around the world get pummelled.
If you have your money tied up in ETFs, you could get hit hard as markets tumble across the board.
But with every big fall in the markets is an opportunity to invest wisely.
Let’s have a look at the stocks on the ASX 200 that were up yesterday as markets fell:
With the exception of Breville, APN Outdoor, Amcor and Fortescue Metals Group (which does iron ore), the stocks on the list are ALL gold miners.
Big gains for gold stocks could be around the corner
Why is this you ask?
Well for one, gold is traditionally seen as a safe-haven in troubled times.
Since the advent of modern markets, gold has almost always done well when markets fall.
It’s tangible, it’s shiny and it used to be what paper money was pegged to.
Its value has been remarkably resilient despite a near 10-year bull run on global markets.
Here’s its 10-year chart:
Also of note is the fact that gold was up 2.5% yesterday, trading $1,223 at time of writing.
As gold goes up in price, and it could rise significantly if markets implode, gold mining stocks could be a good option for investors.
Even small-cap gold stocks could benefit from a rising gold price.
Food for thought.
For Money Morning
PS: If you are looking to make a gold play, check out our free gold report by our resource expert Jason Stevenson.