Email of the day on gold's upside potential
Comment of the Day

February 17 2020

Commentary by Eoin Treacy

Email of the day on gold's upside potential

The long run outlook for gold is very encouraging. Even in the short run, competitive devaluations by CBs are supportive.  Coronavirus is also supportive.  Do you think that investing in a gold ETF is a reasonable hedge against a short-term correction on the S&P500? Are frightened investors likely to seek the security of gold or are they more likely to flock to cash?

 

Eoin Treacy's view

Thank you for these questions which may be of interest to other subscribers. Gold and the Dollar have been rallying together against a background of increasing virus-hedging activity. That suggests investors have a preference for classic hedges rather than cash at present.

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