Alright, well we can finally put to bed the idea that gold and silver are safe-haven investments.
Back in November we argued that that silver was basically acting like a high-beta stock that almost perfectly tracked shares of another high-beta stock: Apple.
Well, now the air is getting let out of the momentum names. All of the hot stocks of late are leading the way down, and what are the precious metals doing?
Tanking… only more so.
You can argue to the end of the world that gold and silver are safe havens, but if they quack like momentum assets, and look like momentum assets, then they are.
It’s also raising eyebrows that Treasuries are selling off today, which doesn’t seem consistent with a “risk off” day, but if fears of overseas inflation soon coming home to roost come to pass, then it makes a bit more sense.
Meanwhile, here’s along term look Apple and Silver: