Real Risk Asset Safe-haven Protection Lies in Gold and Silver

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“I believe investors can still find real safe-haven risk asset protection in the time-tested precious metals asset sector“– Paul Ebeling

The US stock market is seeing the longest Bull run in history, and savvy money managers and investors are hedged against its need for a healthy correction to rebalance the valuations.

Readers of this column learned that early this year I recommended changing our portfolio gold recommendation from 10 to 15%.

The emergence of COVID-19 has strengthened that call because gold and silver assets thrive during periods of heightened economic uncertainty and so they have in this instance.

The China Act of War Virus caused an instant recession in February, it was a major financial crisis that affected valuations of precious metal assets very Bullishly.

And the Bullish trend that began in December 2019 played out well as gold prices outperformed the S&P 500 by about 38% Vs the S&P 500’s nearly 24% during the trading frame

Looking Ahead: Investors in precious metals investors ask themselves 2 Key Questions to determine if the Bullish trends will continue.

These Big Q’s relate to the growing debt marks drriving the US economy’s V-shaped recovery and the continued global economic uncertainties that may continue as a result of the COVID-19 chaos.

  1. We do not know how much longer everyone will need to wait before a majority of the global population is able to receive a vaccine for coronavirus and this has made it much more difficult to provide accurate projections for global GDP growth, though US GDP is headed due North at a record pace.
  2. The debt issue can be quantified because we know exactly how much money the Fed is printing and which types of debt-funded stimulus packages are being negotiated by The Trump Administration and agreed by the US Congress. This metric will have a long-term Southside effect on the value of USD.

All that happening, proactive investors have strategies available that will make it easier to avoid a debt-fueled collapse in the Buck, and the coming valuation correction in stock markets.

Using history as the guide, these trends suggest that investors should consider adding gold and silver assets to their diversified portfolio strategy.

And there is no excuse for avoiding proactive protective investment strategies. As there is too much uncertainty in this market; investors must identify assets that have the potential to generate gains while the rest of the market declines when it does.

For these reasons, I believe investors can find real safe-haven risk asset protection in the time-tested asset trends that can be found in the precious metals space.

Have a healthy day, Keep the Faith!

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