March 9, 2026
Gold's Bull Market Isn't Over
Dear Subscriber,
 |
| By Nilus Mattive |
Based on last week’s market action, a lot of people are starting to second guess gold’s status as a safe-haven asset.
Or at the very least, they’re wondering whether its big bull run is now over.
And they’re casting the same doubt on other metals by extension, especially silver.
Last week, my friend and colleague Sean Brodrick gave his thoughts on the matter. And I agree with his analysis wholeheartedly.
I would say there were three related factors that caused gold to post an underwhelming performance:
- A lot of scared money moving into U.S. dollars.
- Profit-taking.
- Additional selling related to portfolio deleveraging and margin calls.
Basically, you had a lot of scared money moving out of riskier assets and into cold, hard cash in the form of greenbacks and other short-term dollar-denominated assets.
That alone boosts the value of the dollar relative to other currencies as well as things like gold.
On top of that, you had some people selling their gold and gold-related stocks just because moving to cash felt better and safer … especially after such a big run-up already.
Meanwhile, because those types of assets have substantial value, they were also the very things investors had to sell to shore up their portfolios, particularly ones using borrowed money to make riskier bets.
This is nothing new.
Take a look at the performance of the SPDR Gold ETF (GLD) during the fall of 2008, just as the Financial Crisis was heating up …
You can see that it was trading between $90 and $100 for months.
Then, by the time Lehman Brothers declared bankruptcy on Sept. 15 — a moment that many consider the climax of the crisis — it plunged toward $70.
That’s hardly providing protection in a crisis, right?
But zooming out a little farther shows a different picture …
You can see that gold’s weakness was just a short-term blip during the height of the panic … an event that had investors selling all their assets indiscriminately.
Is there any reason to think this time is different?
No.
For starters, the current action taking place in Iran is just the latest in a string of geopolitical flare-ups. And I sincerely doubt it will be the last.
The overall global environment right now is one of separation and distrust.
That is wildly bullish for gold, which is one of the only stores of wealth that exists outside the control of individual governments.
And it’s certainly the most proven of them all.
In addition, what’s happening in the Middle East is inflationary.
Maybe only mildly. Maybe only for a short while. But rising oil prices can quickly start rippling through the global economy.
Not to mention other side effects like the impact on fertilizer shipments and prices. Again, this is bullish for gold.
Finally, we should consider the costs associated with ongoing military action.
They will only add to America’s spiraling debt. That’s bad for taxpayers but positive for gold.
So, my message today is: Don’t mistake a dot for a line.
Many of the very same people who are naysaying gold simultaneously believe the stock market can keep soaring despite trading near some of the highest valuations we have ever seen …
They believe a bull run in gold has to top out after a double or triple but think Magnificent 7 stocks can double every year in perpetuity …
And they consider the AI trend supremely powerful while completely ignoring the forces I just outlined a moment ago.
If anything, history suggests gold has a lot more room to run from here. And so do many other metals.
Therefore, I continue to recommend having an allocation to both the metals themselves as well as mining stocks and other related investments.
If you don’t, or you’d like to increase your holdings, the irrational market action taking place right now is presenting a golden opportunity.
Best wishes,
Nilus Mattive
P.S. If you’re looking for a really interesting — and potentially very profitable — way to play the ongoing metals boom, then you really need to see this video from Chris Graebe.
It’s all about a private company with an extremely unique way of “mining” valuable metals.
Tidak ada komentar:
Posting Komentar