Gold is flying under the radar

(August 15, 2017 - by Jesse Felder)

While everyone pays such close attention to every tick of the stock market and the cryptocurrencies, gold has been quietly flying under the radar. Not many have noticed that it’s now outperforming the S&P 500 so far this year.

Even fewer are probably aware of the fact that it has dramatically outperformed the stock market so far this century. We can thank the recent four-year bear market for that. It’s been very effective in cultivating investor antipathy toward the precious metal.

But the recent bullish action in gold prices hasn’t escaped everyone’s notice.

Personally, I see it as more of a head and shoulders bottom pattern developing.

Either way, as my friend Toddo notes, the recent technical consolidation is constructive.

And in the short-term investors might soon find reason to rethink their aversion to gold.

As Mr. Dalio has said in the past, “If you don’t own gold… you don’t know history or you don’t know the economics of it.” Longer-term both history and economics suggest it’s probably a good time to be accumulating gold.