JD and Joel discuss Peter’s take on the record-breaking highs in stocks, driven by chip company NVIDIA’s $277 billion Thursday rally. Is there a stock bubble driven by AI hype and low-interest rates? How might the Fed respond and what does this mean for gold?
Gold prices have been on a tear, with bullion prices ripping upward since the outbreak of war in the Middle East late last year. While mining stocks have gone up as well, physical gold has been leaving them in the dust:
In this week’s Friday Gold Wrap Podcast, JD and Joel discuss why gold is down this week, soaring tech stocks and plummeting gold stocks, and other market and precious metals news.
With the economic chaos created by coronavirus economic shutdowns and the Federal Reserve creating trillions of dollars out of thin air, there is suddenly a lot of interest in buying gold, both as a safe haven and an inflation hedge.
But what is the best way to invest in the yellow metal? Should you buy physical gold? Gold ETFs? Gold stocks? What’s the difference? Are there advantages or disadvantages to each of these options?
The price of gold is up by about 2.7% so far in 2020. But gold stocks are down on the year. Why is this happening and what is this telling us?
When we talk about gold stocks, we’re referring generally to stock in companies involved in gold mining and exploration. The valuation of these stocks as a group typically track with the price of physical gold. When the price of gold is going up, the miners typically follow along.
So, why this recent divergence?
