Gold Stocks Remain High While Broader Markets Dwindle

Historically, we have seen a heavy correlation between a rising price of gold and lowering confidence in the overall stock market. This is due to the fact that when people have lower confidence in the stock market, they tend to put money into precious metals. Additionally, precious metals tend to be less volatile than the general market. That is why certain gold stocks remain very solid stores of wealth.

The latest actions taken by the US against Baghdad have shaken up things again this week. The attacks and subsequent killing of Iran’s second in command have triggered a ripple across global stocks. This has become a catalyst for

What Top Investors Are Saying About Gold Stocks

A new survey came out detailing the opinion of over 3,000 millionaires, on gold. What came to light is that more than half of those individuals have stated that there could be a significant market sell-off in the near future.

This means that many investors have moved into cash and gold. According to the report, that figure is around 25% of their portfolios in actuality, so a significant portion. With this big movement to free cash and other forms of liquid assets, it seems as though gold is becoming more attractive than ever.

Why Are Gold Stocks So Hot?

One of the key reasons mentioned above that stands to why so many investors turn to gold is the fact that it is one of the most stable ways to store value. Gold has also historically climbed in value during periods where most other assets lose out. In the past three years, we have seen assets in money market funds shoot up by as much as $1 trillion.

With so many big institutions seeing upticks in investments, gold is becoming more and more relevant in the present day. As we continue to see gold stocks move up, the hopes are that we won’t see too large of a downtrend in the general market.

For now, it looks as though things are relatively stable. Moving into the new year, only time will tell what occurs with gold stocks. But based on the recent developments for gold and the global economy, it might be time to start taking notice of the precious metal.

Originally published at https://goldstocks.com on January 3, 2020.