Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • AI Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    • Postcards
Login Archives Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • AI Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    • Postcards
    ×
  • Subscribe
Enter stock ticker or keyword
×
Join 100,000+ Like-Minded Investors Today
Twitter
Tags: Precious Metals

Of All Safe Haven Investments, Gold Reigns Supreme

By Tara Clarke, Associate Editor, Money Morning • @TaraKateClarke • October 17, 2014

Start the conversation

Leave a Reply Click here to cancel reply.

You must be logged in to post a comment.

The Dow is down 3.9% in October, but gold prices have climbed 1.7%. That's because despite what the mainstream media says, gold is the best of all safe haven investments to own.

No asset has had as much history of purchasing power as gold. Fiat currencies are unreliable - they aren't tied to any asset of value. Their worth comes from government regulations and laws, which are subject to crumble over time.

"Gold was used as currency for centuries. In fact, it's still being used for transactions in places such as China, India, and much of the Middle East - regions that are eager to diversify away from the beleaguered U.S. dollar," Money Morning Chief Investment Strategist Keith Fitz-Gerald said. "As we face war, terrorism, and other ugliness, the need to hedge value is beginning to supersede the need to hedge price. Gold is one of the few assets with that capability."

Gold's status as the best store of value can be seen when gold prices spike during times of great geopolitical conflict. This year's conflicts in the Middle East and between Ukraine and Russia show how the two trends move in tandem:

safe-haven-investments

The movement suggests people trust in the enduring value of the yellow metal more than governments and paper money, which are both prone to collapse. A similar effect can be seen when the U.S. stock market plummeted in 2008-2009 - gold soared:

safe haven investments chart

Yet another example of this idea is the bank of Cyprus' failure in 2013. Last March, the country announced it would confiscate up to 10% of bank deposits. The news pushed gold up $24 an ounce on safe haven demand.

"Physical gold coins or bars are an unequalled safe haven, due to their liquidity and lack of counterparty risk," Money Morning Resource Specialist Peter Krauth said at the time. "It is the only liquid, universally recognized form of transportable wealth that is not simultaneously someone else's liability. That's what makes gold so desirable."

The yellow metal doesn't just protect investors because they can hold it outside of governments and banks. It's is also a valuable hedge because financial institutions themselves use it to buy on margin - when they go into debt, they use gold as collateral for the funds being borrowed. And they're buying on margin at an ever-increasing rate...

Here Are 10 “One-Click” Ways to Earn 10% or Better on Your Money Every Quarter

Appreciation is great, but it’s possible to get even more out of the shares you own. A lot more: you can easily beat inflation and collect regular income to spare. There are no complicated trades to put on, no high-level options clearances necessary. In fact, you can do this with a couple of mouse clicks – passive income redefined. Click here for the report…

Claim My Free Report

Subscribe
Login
Notify of
guest

guest

0 Comments
Inline Feedbacks
View all comments


Latest News

September 22, 2023 • By Shah Gilani

earnings
Why the Fed's "Higher for Longer" Message on Interest Rates is Bogus

September 22, 2023 • By Tom Gentile

This is the Top 'Worst-in-Breed' Stock Heading into October

September 21, 2023 • By Shah Gilani

earnings
The Best Auto Stocks to Buy (or Avoid) Right Now
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Penny Hawk Midday Momentum
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Quantum Data Profits Flashpoint Trader Darknet Alpha Accelerators Brutus Alerts Resource Traders Alliance L.A.U.N.C.H. Investor Rob Roy Trader Long-Term Equity Profits

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz