Gold Soars 16% In Q1 - Best Start To A Year In 42 Years

Tyler Durden's picture

Gold's 16.1% surge in Q1 2016 ias the best start to a year since 1974. Overall, this is the best quarter since Q3 1986 and is the best performing major commodity of the year.

Gold rallied this year as it cemented its status as a store of value amid financial market turbulence and concern about the global economy, which led to speculation that the Federal Reserve would pause on tightening monetary policy in the U.S. Having seen BlackRock's gold ETF halted due to inability to meet physical demand, it appears pet rocks and barbarous relics are 'worth' something after all.

 

As Bloomberg reports,

Gold rallied this year as it cemented its status as a store of value amid financial market turbulence and concern about the global economy, which led to speculation that the Federal Reserve would pause on tightening monetary policy in the U.S.

 

A gauge of the U.S. currency headed for the biggest quarterly loss since 2010 after Fed Chair Janet Yellen said Tuesday the central bank will act “cautiously” as it looks to withdraw stimulus. Investor holdings in exchange-traded products have expanded by about 300 metric tons this quarter, the most since March 2009.

 

“The dovish remarks by Yellen earlier this week which reinforced the Fed’s stance to proceed gradually and cautiously with rate hikes this year have weighed on the U.S. dollar index, which is a positive for gold,” Vyanne Lai, an economist at National Australia Bank Ltd., said by e-mail. “Investment demand for gold appears to be holding up.”

The precious metal was the best performing asset in Q1...

 

Having gone through a "golden cross"...

 

Gold now has to breakout from its longer-term channel...

Finally for the skeptics that cannot comprehend why anyone would buy gold (instead of AAPL or AMZN or TWTR), consider this (from Kyle Bass):

"buying gold is just buying a put against the idiocy of the political cycle. It's that simple."

And from what we have seen the world's political and economic leaders are about as "idiotic" as it gets.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) Mar 31, 2016 2:29 PM

Only 75% to go to be where it was seven years ago!

Woo, hoo!!!

 

urp...

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) HedgeAccordingly Mar 31, 2016 2:33 PM

Not that I'm against gold, mind you.  I'd love to have it skyrocket.  I'm just real frick'n tired of the non-stop hype even as it plummeted close to 50% a few years ago.

Kaiser Sousa's picture

u can buy a share of OBM thats leading the Dow today with 150 debt coupond dollars...

how many ounces of physical Gold can you buy with that same worthless green piece of confetti??????

it aint hype...Gold is Money.

 

Squid-puppets a-go-go's picture

i just wanna know why some small clique of oligarchs havent felt the temptation to scoop the last 10 tonnes outta the comex, put the stake in the heart of this vampire and ride the wave to riches? Pass the hat fellaz, only need $420 million, maybe anothe $100 million dry powder for backup

blackstone? .... pacific ?  money where ur mouth is, plz

Dame Ednas Possum's picture

"Investor holdings in exchange-traded products have expanded by about 300 metric tons... "

These pricks make laugh and vomit in concert.

300 metric tons... of just fucking what? Fart gas, that's what.

Viva la free gold.

In gold we trust.

SuperRay's picture

Gold IS money in some states. Support NULLIFICATION! Fuck the federal government

ZH Snob's picture
We've only just begun to live
White lace and promises
A kiss for luck and we're on our way
(We've only begun)

 

joego1's picture

yeah Gold is much better than the HillDonary show.

robertocarlos's picture

Ya well my Canadian dollars under my mattress have gained 10% so far this year.If China sells their T-bills I am expecting a 200% gain.

Sir SpeaksALot's picture

am I the only one who wants to smack Mrs Yellen in the face hard?

TVP's picture

Don't smack her with a hand, smack her with a copy of Atlas Shrugged.  Then peddle that fiction straight up her data-dependent dovish you know what.

Kreditanstalt's picture

It's not a "commodity"...and the PAPER-DRIVEN "gold price" is soaring.

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Mar 31, 2016 2:39 PM

It got its golden cross, now the Fed will show it a Golden Shower

E.F. Mutton's picture

Yup.  Just like Keyser Soze at the beginning of The Usual Suspects....

kliguy38's picture

You guys are CRAZY........Its a BARBAROUS RELIC.......buy PAPER......its forever

Aubiekong's picture

Is gold up or are fiat curriences down?

NoWayJose's picture

This would be great if gold was not hammered down by 10% last year...

But hey, my stack is shining 16.1% brighter than it was a quarter ago...

MFL8240's picture

Have no fear, the federal reserve will come up with some new bullshit any day now and knock it down yet again!

SubjectivObject's picture

Funny, I don't feel soared.

arbwhore's picture

Idiocy can easily get worse from here... easily.

Theonewhoknows's picture
Theonewhoknows (not verified) Mar 31, 2016 3:26 PM

Yes Gold is the base - must be to one of your perm portfolio http://independenttrader.org/permanent-portfolio-models-and-their-long-term-roi.html

CHX's picture

Let's all hold hands and say it once and for all together: "GOLD IS NOT A COMMODITY, GOLD IS NOT A COMMODITY,GOLD IS NOT A COMMODITY "

*rolling eyes* - sorry, had to get this off my chest. Stack on ya'll we're heading for stormy times...

Edit - ps. Kreditanstalt beat me to it.

ramgold2206's picture

If your game for it guys there in serious opportunity in this gig. It suits ZH'ers

http://ramgold.ilp24.com/18968

Volkodav's picture

Care to admit how much karat bars per ounce gold in real cost?

 

 

V for ...'s picture
V for ... (not verified) Mar 31, 2016 5:23 PM

All CONgress bows down to the foreign owned un-Federal no-Reserve Board, the dual citizens who have their slave nation,  pet fiefdom in genocidal Israhell to which CONgress bows, pledges allegiance to AIPAC and other dual citizen TRAITORS.

Is that what you want? Hitlery and The Don put that at the top of their priority list. You applaud that? Idiots.

Fuck this for a game of soldiers.

I sold my last property in the U.S. recently. The money will go into gold and silver, offshore.

The USA has become the bitch of delusional, criminally insane Zionists in London, Tel Aviv and Washington D.C. Filth.

 

PS

That bitch David Cameron just sold out Brits and their longtime ally India by siding with the Rothschild's China which will kill British jobs, productivity, and make more slaves.

The steel industry worldwide is now merely another gulag, slave labour....Britain's CONservatives, New LIEbore, LIMPDUMB allow it. Ignore their excuses. They profit most. Filth.

Fuck 'em. Don't get angry. Get ready.

V for ...'s picture
V for ... (not verified) Mar 31, 2016 5:35 PM

It is a very grave mistake to push people who don't bluff too far. A reminder. I'll fight yer for it ;-D Aye. Enjoy the clip from 'Snatch' and Brad Pitt:

https://www.youtube.com/watch?v=g7QBS0O7gT0

You stay until the job is done. There is no exit now. Be ready.