Do you think gold is still a safe asset?
Gold is Safe Haven or Safe Assets. especially during the economic crisis And it seems that this sentence is already deeply ingrained in the minds of gold investors. He became convinced
But … During 9-18 March 2020, the last stock market fell an overturn. and rose during 23-26 March 2020, the strongest since December 2008.
These factors press the US bond yield from one year to ten years. fell below 1% all at once before the Fed held an emergency meeting and immediately cut interest rates to 0.00-0.25%.
But gold found a heavy sell-off in these 3 days, the reason the market used to make a decision was “Lack of liquidity” and “take profit” and the latest reports that US retail sales numbers have dropped, but the price of gold has fallen again.
What we should do first? Therefore, they should be known to let go of their beliefs in the normal market first. because in a crisis no matter what kind of asset or even how strong the relationship is when the market only wants “money”, anything other than straight money. had to step aside and besides Although not the most volatile day Gold was not the most erratic asset in the early days of a recession.
We must come back to understand gold again. and for those who like to buy gold, You must always remind yourself that “This is speculation, not an investment,” whether we like this definition or not.