ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Precious Metals: The Best Hedge Against Reckless Central Bank Policy

Updated on August 8, 2016

We have been telling our Dohmen Capital followers since early this year that Gold and the Precious Metals sector should be one of the best performing sectors in 2016. Since the start of this year, the Gold ETF (GLD) has added in excess of 300 tons of gold to its vaults, increasing their assets-under-management by over 50%. That’s an incredible increase. So far this year, Gold is up about 25%, Silver is up over 40%, the Gold Miners ETF (GDX) is up over 110%, compared with the S&P 500 which is up less than 6%.

The reason why investors are flocking to Gold is because it is the best at being a currency, not necessarily because they are used as a metal in industrial processes. This year gold posted the largest inflows since June 2009. Investors have rushed to safety assets because they have become worried that the world’s central bankers are completely focused on debasing their currencies without any sort of reasonable limits.

Also the technicals for Gold have become very bullish and are forecasting that the move we’ve seen so far in 2016 is far from over. Recently Gold’s 50-day moving average crossed above the 200-day moving average, also known as the “Golden Cross.” This is a very bullish trend pattern which signals that momentum is rising. The last similar golden cross was back in February 2009, which was the start of a very strong bull market.

The world has begun waking up and investors are starting to realize that there’s no better “safe-haven” than owning hard assets, such as precious metals. Many prominent investors are now finally following our lead and see a similar trend in Gold, including Bill Gross, Stanley Druckenmiller, and George Soros among others.

Bond king Bill Gross recently mentioned his interest in Gold saying “I don’t like bonds; I don’t like most stocks; I don’t like private equity. Real assets such as land, gold…are favored asset categories.”

Legendary hedge fund manager Stanley Druckenmiller claims Gold is the asset class to own in these experimental times in which the "bull market in stocks is exhausted." He said " Some regard it (Gold) as a metal, we regard it as a currency and it remains our largest currency allocation."

George Soros spent $387 million between two gold positions in Q1 2016. In May, he disclosed he has a19 million-share stake in one Gold stock.

It is great to see high-profile investors finally realizing a strategy that our subscribers at Dohmen Capital Research and HedgeFolios have already been profiting from for many months. The world has begun waking up to the reckless central bank policy experiment. Investors will no longer simply follow the blind “buy-and-hold” or “TINA” strategies that have wrecked so many savings and retirement accounts of investors around the world.

Join the winning minority now and learn how you can protect your wealth and profit from the coming market turmoil. Click here to learn more about Dohmen Capital’s services for serious investors and traders.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)