Where to Invest During the Stock Market Panic? — Gold

At time of writing the ASX 200 is down 2.4%. It’s now down 12.6% since the sell-off began in earnest two weeks ago, on Friday, 21 February.

Where do you invest during the current stock market panic? There are a few noteworthy standouts in this falling market.

Gold was on an upward track even before the coronavirus fears sent investors scrambling for haven assets. And it’s done particularly well in Aussie dollar terms.

Have a look at the chart below. It shows the gold price in Australian dollars per ounce on the right hand scale. And it dates back all the way to 1975.

Where to invest during stock market panic? - Gold

Source: Goldprice.org

Have a look at the far left side of the chart.

In 1975 you could have picked up an ounce of gold for $51. Today that same ounce is worth $2,536. That’s a gain of 4,873%.

Now, granted, that’s over a 35-year period.

So let’s bring up the one-year chart:

Gold Price Chart - 1 Year Gold Price Movement

Source: Goldprice.org

One year ago an ounce of gold was worth $1,812 Aussie dollars. Meaning the yellow metal has gained 40.0% over 12 short months.

It’s hard to tell on the chart. But gold — at seven-year highs in US dollar terms — just notched up a new record high in Aussie dollars, unseating the previous peak from 24 February.

As we said, even before the coronavirus launched a new rush for haven assets, gold was doing well. But since fear really began to trickle into markets in early February, gold’s run higher accelerated. It’s now up 10.0% since 4 February.

That’s seen some of the gold miners clock 20% gains…and more.

Of course not all miners have gained. It’s a notoriously risky business.

To help steer you in the right direction, Rum Rebellion editor Greg Canavan put together this free special report, ‘How to Pick Winning Gold Stocks’.

You can click here to download that — for free — now.


Bernd Struben is an Editor of The Rum Rebellion. In this capacity, he has access to one of the most intriguing and powerful networks of practical investment insight anywhere in the world. Bernd has worked on four different continents, and has more than 20 years of professional finance, editorial, and management experience. He holds a degree in economics.


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