Gold: Waiting for Wall Street
By: Jeffrey Nichols
Although gold prices have had some difficulty sustaining recent gains above the $1365 per ounce level, the metal has nevertheless registered just about the best performance across virtually all investment classes over the past six or seven months.
Over the past half year, the metal has rallied some 25 to 30 percent – far better than the major stock-market averages that have received more favorable attention from the financial press for reaching new all-time highs.
The reason I mention this is that gold has been trading inversely to equities – and, consequently, the yellow metal stands to gain much when Wall Street tumbles, an outcome that seems increasingly likely as world stock markets edge higher despite widespread expectations of slow economic growth and disappointing corporate earnings, at least for the next year or two from one country to the next.
In recent years, a small number of hed…