So, does my title appropriately capture the sentiment about metals right now?
While the title may seem a bit extreme to some of you, many are leaving the metals for dead, and others have already written their obituaries.
In fact, this past week, just as the metals were hitting what will likely be a bottoming in either a third wave of this decline, or possibly even all of the decline, a headline article came out on MarketWatch entitled “Here’s why gold might die out as an investment.”
Within that article, the writer alludes to the fact that since gold was not able to rally due to the geopolitical tensions around Turkey, then it is a sign it is no longer useful. However, if any of you have read my articles on this issue, you would know that history does not support the premise that gold reacts as a safe haven for geopolitical tensions. This is purely a fallacy. But, since it is regurgitated so often most of the market has taken it as gospel despite the facts suggesting otherwise.
The next premise within the article upon which he declares gold as dead is due to technology, and he is not referring to cryptocurrencies. While he is not wholly clear regarding this perspective, my assumption is that he is falling into the trap of most people in the market. Since the Nasdaq has continued to rally strongly, along with its supporting cast of FAANG, then that is clearly where younger people are going to put their money, rather than gold.