We watched the movie “The Italian Job” a few nights ago. It’s the heist movie where Mark Wahlberg, Charlize Theron, and company steal and re-steal $35 million in gold bars. It got me thinking about the trend in gold prices since I last wrote this article almost 18 months ago:
LINK – Gold: An Investment In Fear?
Despite being considered an excellent hedge against inflation and economic downturns, gold continues to be stone cold. In fact, gold has dropped for the sixth straight month and is approaching its longest losing streak in 30 years (back to 1989). It’s down -13% in calendar 2018 and that’s despite inflation starting to rise.
As I’ve written in the past, gold seems to be primarily a hedge against doom and gloom in the economy and with most financial measures looking up, few are seeing a lot of opportunity in investing in it. Nonetheless, late night TV is filled with infomercials lauding it’s potential and security.
While I’m sure gold prices will move up again at some point, it remains a bit of an enigma to me among investments. The only thing it seems to correlate with is some sort of a global fear index and that’s pretty difficult for me to assess.
Anyone predicting a gold rebound?
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