No wonder investors are apprehensive about buying gold. Consider this headline on MarketWatch this morning:
Gold struggles for direction after highest highest (sic) finish in nearly 8 years
Gold is up $700 from its 2015 low of $1063. Yet, this writer asserts that “gold struggles for direction.”
With gold’s price action over the last five years, you would think that writers would be on the bandwagon, extolling gold’s virtues. But no, they remain anti-gold.
With the challenges facing the U.S. and the world’s economies, gold has clearly shown that it is the “money of last resort” as it is within 9% of its all-time intra-day high of $1960.
Buried in the article is this comment:
“Perhaps the yellow metal is slowly seeing some safe haven love again, although I say that with extreme caution (emphasis added) having seen those signs crushed repeatedly over the last few months,” said Craig Erlam, a senior market analyst at Oanda. “It’s now finally and comfortably through $1,750 so the next test, and this one could be very significant indeed, is $1,800.”
(What is Erlam suggesting, that investors wait until gold tops $1,800 before buying?)
Even this analyst fears for gold, having seen it “crushed repeatedly over the last few months.” Gold is up $700 over the last five years, and analysts are still panning it. However, some really big hitters have openly admitted that they have bought gold.
And, central banks were big buyers in 2019. With central banks’ unlimited ability to create currency, you can’t name bigger buyers.
