Only a few strategies seem to be providers of crisis alpha or outperformance in time of significant stress in traditional betas: gold seems to fit that definition.
Gold is off 16 percent from its high, silver almost 40 percent down from the record high established in May of this year.
Volatility in precious metals as well as other commodities isn’t going to disappear anytime soon, but for gold, the major trend still points upward.
It has been a wild ride this summer. As we try to put these markets swings into context, I can’t help but think that the “New Normal” has actually arrived.
Every now and then, the markets leave you speechless. This was one of those weeks. There was hardly any place to hide except for Treasuries and Gold.