Gold is up over 15% so far in 2016, while stocks are down 6%, giving gold a 21.7% lead over the S&P 500 through the first 50 days of the year.  Gold fell to $1208 on President’s Day, when most U.S. markets were closed, but it continued to recover through the rest of the week, closing at $1232 in London and $1227 in New York.  Stocks also recovered for a few days (February 12-17) before retreating again.  The trend toward negative interest rates in Japan and Europe helped support gold, while the Federal Reserve is reconsidering any further interest rates in their March meeting and even discussing negative interest rates.

Gold is up over 15% so far in 2016, while stocks are down 6%, giving gold a 21.7% lead over the S&P 500 through the first 50 days of the year.  Gold fell to $1208 on President’s Day, when most U.S. markets were closed, but it continued to recover through the rest of the week, closing at $1232 in London and $1227 in New York.  Stocks also recovered for a few days (February 12-17) before retreating again.  The trend toward negative interest rates in Japan and Europe helped support gold, while the Federal Reserve is reconsidering any further interest rates in their March meeting and even discussing negative interest rates.

Gold is up over 12% in the first five weeks of 2016, while stocks are down 9% in the same time, giving gold a 21% advantage over stocks.  Gold opened on Monday morning (February 8) by touching its $1200 price from the start of 2015, thereby making up for all the losses from last year. 

Gold is up over 12% in the first five weeks of 2016, while stocks are down 9% in the same time, giving gold a 21% advantage over stocks.  Gold opened on Monday morning (February 8) by touching its $1200 price from the start of 2015, thereby making up for all the losses from last year. 

Gold is up over 12% in the first five weeks of 2016, while stocks are down 9% in the same time, giving gold a 21% advantage over stocks.  Gold opened on Monday morning (February 8) by touching its $1200 price from the start of 2015, thereby making up for all the losses from last year. 

Gold is up over 12% in the first five weeks of 2016, while stocks are down 9% in the same time, giving gold a 21% advantage over stocks.  Gold opened on Monday morning (February 8) by touching its $1200 price from the start of 2015, thereby making up for all the losses from last year. 

Gold is up over 12% in the first five weeks of 2016, while stocks are down 9% in the same time, giving gold a 21% advantage over stocks.  Gold opened on Monday morning (February 8) by touching its $1200 price from the start of 2015, thereby making up for all the losses from last year. 

Gold is up over 12% in the first five weeks of 2016, while stocks are down 9% in the same time, giving gold a 21% advantage over stocks.  Gold opened on Monday morning (February 8) by touching its $1200 price from the start of 2015, thereby making up for all the losses from last year. 

Gold rose again last week to close January at $1,118 per ounce, up 5.3% in January.  Meanwhile, the Dow Jones and S&P stock indexes were each down over 5%, averaging a 5.3% loss. Therefore, gold has earned a 10.6% advantage over stocks so far in 2016.  One of the main reasons for gold’s advantage is the surprising decline in many global interest rates.  When the Fed raised rates in December, investors had assumed they would keep raising rates and then other countries might follow.  Instead, Japan surprisingly reduced its key short-term rate to -0.1% from +0.1%.  Now there are five major central banks that impose negative interest rates on overnight bank money: The European Central Bank (ECB), the Bank of Japan and central banks in Switzerland, Denmark and Sweden.  Last Friday, former Federal Reserve Chairman Ben Bernanke told MarketWatch that the U.S. Federal Reserve ought to consider negative rates as well.  With so many key currencies earning less than zero, gold enjoys a very real advantage over paper money.

Gold rose again last week to close January at $1,118 per ounce, up 5.3% in January.  Meanwhile, the Dow Jones and S&P stock indexes were each down over 5%, averaging a 5.3% loss. Therefore, gold has earned a 10.6% advantage over stocks so far in 2016.  One of the main reasons for gold’s advantage is the surprising decline in many global interest rates.  When the Fed raised rates in December, investors had assumed they would keep raising rates and then other countries might follow.  Instead, Japan surprisingly reduced its key short-term rate to -0.1% from +0.1%.  Now there are five major central banks that impose negative interest rates on overnight bank money: The European Central Bank (ECB), the Bank of Japan and central banks in Switzerland, Denmark and Sweden.  Last Friday, former Federal Reserve Chairman Ben Bernanke told MarketWatch that the U.S. Federal Reserve ought to consider negative rates as well.  With so many key currencies earning less than zero, gold enjoys a very real advantage over paper money.