Will gold and silver soon become more favorable as alternative investments?
*Barron's, by Michael Kahn, March 3, 2014
‘Investors are trading paper assets for real assets, and the charts suggest the move is just getting started.
As Russian commandos take up positions around Crimea, it’s no surprise that investors are dumping stocks and other ‘risk’ assets while fleeing to safety assets, such as Treasury bonds and gold. But tensions in Ukraine are only part of the fuel behind the moves. In fact, the commodities market as a whole broke out to the upside about a month ago.
From gold to corn to livestock, investing in tangibles is back in favor.
The bottom line is it looks as if investors are turning away from stocks and toward hard assets. Indeed, the ratio, or relative performance chart, of the Standard & Poor’s 500 to the Greenhaven fund has broken down. After a five-year bull market in stocks, it does seem that equity investors are seeking something else to do with their money.”
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