Gold: The Ultimate Safe Haven

03/06/2017 7:00 am EST


Mary Anne & Pamela Aden

Co-Editors, The Aden Forecast

Global gold investment demand for 2016 hit its highest level in four years. Gold is special. It can’t go broke and it’s stood the test of thousands of years. This is why wealthy people own large quantities of gold. Gold is the ultimate safe haven asset; it’s real money, observes Mary Anne and Pamela Aden, editors of The Aden Forecast.

Gold and silver rose to three month highs this month while gold shares outperformed them all. In fact, all the precious metals rose, which in itself is a bullish reinforcement. Indeed, when all of the precious metals rise together, the bull market tends to be a solid one.

Already, rising commodity prices are hinting at potential inflation down the road. We can’t forget that gold is the ultimate inflation hedge, and this could be the “surprise” in the coming years.

For now, it’s the uncertainty surrounding the U.S. presidency that’s good for gold. But Trump’s reflation policies could end up being even better for gold this year too. In this vein, gold could easily become a hiding place from riskier markets, even the stock market.

Gold’s A rise has been a stronger one, rising clearly above the $1200 level and its key  moving averages, which is a bullish sign for the whole turnaround from bear to bull over the past one+ year. For this reason, we now recommend buying some gold shares.

The A rise has now given us the okay to buy and hold for a further ongoing rise. Granted they’ve all risen far and fast, so buying some now and on any upcoming weakness is the best way to buy.

We currently advise buying some gold shares and we’ll also take advantage of weakness when it comes to buy more. Silver is even better than gold.

We recommend buying Agnico Eagle (AEM), Gold Miners ETF (GDX) and Jr Gold Miners ETF (GDXJ).  Copper is also soaring, reaching a 20 month high.

Our resource shares, Alcoa (AA) and US Steel (X) have been our best performers. The resource sector is looking good, and it’s also been giving silver an extra boost.

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