Safe Haven, is it Gold?

  The biggest head wind to gold right now is that stock prices have been under some pressure, the economy of the world is under pressure, and as stocks prices come under pressure, it’s not a matter of what you want to sell, but what you can sell…And gold is one of the things people are selling. We also have inflationary pressures out there..look at copper prices, crude oil prices, and that’s putting downward pressure on gold.

  Gold is considered to be a safe haven. Safe havens don’t one and two and 5 percent. Gold moves one and two and five percent. So the fact that people consider gold to be a safe-haven is wrong. Gold is the ‘Armageddon Trade’ in case the whole thing falls apart and if all else goes wrong.

  Parking money in gold is foolishness. The safer things are; buying Canadian Treasury Securities (Canadian T-bills), Australian Treasury Securities (Australian T-bills), or buying U.S Treasury Securities (U.S. T-bills) that have not moved much. ‘Safe’ means ‘Safe’. Safe doesn’t mean something that moves up fifty percent and down thirty percent…That’s hardly safe. Gold is not a safe-haven, Gold is something you trade.

  When it’s a bull market you buy gold, and in a bear market you sell it, and right now we’re in a bear market since October of last year, and gold is being sold.

  For a ‘Safe Haven’ look at (and I keep repeating with good reason) quality stocks paying dividends…Verizon (VZ 41.09), AT&T ( T  33.38), Altria Group (MO 31.96) or (MHY 6.22) a high-yield fund.

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