« Gold Continues to Prove its Safe Haven Status » 🌍🌏 "... BY JASON MAYER | FRIDAY, MARCH 27, 2020
Jason Mayer Senior Portfolio Manager, Sprott Asset Management LP Sprott Gold Team
"... Gold continues to deliver strong relative performance and was up 6.84% on a year-to-date basis through Friday's close. This compares to -20.96% for the S&P 500 Index.1 ..."
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. "...Gold and precious metal equities have been collateral damage during this most recent market correction. The broader markets had become a tinder box with grossly elevated valuation metrics never seen before, coupled with an economy burdened by record amounts of leverage (government, corporate, personal) and widespread investor complacency. All that was required was a spark — enter COVID-19. The speed of the correction was historical. The February to March 30% drawdown was the fastest 30% drawdown of all time (Figure 1).
For us at Sprott, the corresponding selloff in gold bullion and precious metal equities was not surprising. During violent broader market corrections, liquidity is priority number one. This time was no different as broader markets gapped down in response to the greatest demand shock in modern economic history. This resulted in many entities selling gold bullion to meet liquidity requirements that surfaced because of margin calls, and the shuttering of both credit and debt markets. This pattern is similar to what the market witnessed as the Global Financial Crisis (GFC) unfolded in 2008-2009. ..."
https://www.sprott.com/insights/gold-continues-to-prove-its-safe-haven-status/
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