Futures For You by Carley Garner
Is gold really a safe haven?
When the term “safe haven” is casually
used to describe the precious metals
markets, namely gold, I cringe. I
find myself wondering, safe relative to
what? In my experience, gold futures
have proven to be on the top of the list
of volatile commodities. Sure, if you
are savvy enough to buy the low and
sell the high, investing in gold is safe.
For those of us who can’t see into the
future, buying or selling gold in the
futures, cash, or bullion market is purely
speculation. My intent isn’t to discourage
you from trading gold, but to make
sure that you see it for what it is — a
trade and not an investment.
This belief may stem from the days
when gold was viewed as an asset, not
a currency, or subsequently in the gold
standard era. However, the argument
for safe gold doesn’t seem to have much
validity in today’s markets. Gold market
fundamentals today are a far cry
from what they were in the past, yet
many seem to have overlooked this fact.