An Economic Slowdown Is Coming And Gold Looks Good Says VanEck

The bull market run that started in 2009 may soon be coming to a halt, meaning investors will rush back into safe havens like gold, said Joe Foster, portfolio manager at VanEck.“There’s many signs in the economy that we are towards the end of the cycle. So I think in the next 12 to 18 months, you’re going to see an economic slowdown, probably a fall in the stock market, and more risk coming back in to financial system that will drive gold much higher,” Foster told Kitco News.Foster noted that the spike in equities volatility back in February was the result of an “overdue correction” and not the beginning of a bear market, which is why safe havens were non-reactive. “[Investors] we’re worried about it, and so there was no need for a safe haven. To me, that was just a taste of things to come, but the generalist investor just took it as a normal correction,” he said. On bitcoin, Foster said that while cryptocurrencies are a legitimate asset class, they are not a substitute for gold due to their short history, lack of tangible value, and disqualification from being a store of value. (show less)

The bull market run that started in 2009 may soon be coming to a halt, meaning investors will rush back into safe havens like gold, said Joe Foster, portfolio manager at VanEck.“There’s many signs in the economy that we are towards the end of the cycle. So I think in the next 12 to 18 months, you’re going to see an economic slowdown, probably a fall in the stock market, and more risk coming back in to financial system that will drive gold much higher,” Foster told ... (read more)

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