A world of misplaced optimism; got gold?A fitting article to end the day:
(Kitco News) - "...If you asked me what equities would do on a day we found out that more than 20 million jobs were lost in a month, every time I would bet on the downside. However, as we are seeing today, I would be very wrong as the Dow Jones Industrial Average is seeing a 1% gain on the day...But there is a silver lining, or should I say a gold lining, in all this doom and gloom. Gold and gold miners will play an important role in investment portfolios in years to come. Gold as a global currency is a hedge against inflation and fiat currency debasement. I think in this environment, we will have to see lower equity-market valuations.
And of course, higher gold prices mean that gold producers are seeing significant cash flow and some are increasing dividends for their shareholders.
This week we saw the two biggest gold producers report solid first-quarter earnings as the global economy was just starting to see massive devastation from the pandemic.
Although gold price are struggling to find momentum as equity markets rally, many analysts remain extremely bullish on prices in the long-term. Many analysts continue to call for record-high gold prices by the end of the year or early 2021.
https://www.kitco.com/news/2020-05-08/Gold-prices-show-little-reaction-to-staggering-U-S-job-losses.html