Gold rose 3.5% in August as stocks globally saw sharp falls on growing concerns about the Chinese and the global economy.
Premiums on silver coins have risen again - from 22% on Friday to 28% today.
Demand Surge and Shortages of Bullion as Stocks Fall Sharply, Gold Outperforms All Assets In August
It is not hard to see history repeating itself all over again. Just look at the Chinese central bank this week cutting interest rates, just like the Fed had to do in 2008-9.
Gold has a place in high-net worth individuals portfolios as an insurance policy against systemic risk in the banking system, says Carmignac fund manager Michael Hulme.
Gold appears to have once again anticipated the crisis and is acting like a safe haven in recent days - just at the moment when western investors need a safe haven and wealth preservation most.
"Gold and silver will be your only lifeboats as they are no one’s liability in a world where everything including the money in your pocket is someone else’s liability.”
The musings of the many wonderful minds who preach to goldbugs, contrarians, real anarchists, real patriots, conservatives and republicans, moralists, real believers in genuine free markets, solution seekers and a combination of them all, have had a significant impact on my worldview.
Gold’s reaction to China’s devaluation was impressive. Sure, it came at a time when gold was oversold and due a bounce, but, even so, a rise from $1,080 an ounce to $1,125 is not to be sniffed at – particularly as it went in the face of what other metals were doing.
Druckenmiller’s fund recently bought $300 million worth of SPDR Gold Trust (GLD), an ETF that tracks the price of gold. It’s a huge bet, even for a big-time trader like Druckenmiller. He put 20% of his fund’s money into this trade, and it’s his largest position.
Everyone seems to focus on gold's price while forgetting its value as a diversification.
The Telegraph’s John Ficenec has written an excellent piece warning of a possible market crash in the coming weeks. He identifies eight key “signs things could get a whole lot worse.”
China is preparing for a resumption of currency wars and an international monetary crisis, Obama and Kerry warn dollar may “Cease to be the reserve currency of the world”
China surprised global markets yesterday by devaluing its currency on concerns about sharply decelerating Chinese economy