Market insights and analysis

How dynamic, risk-managed investment solutions are performing in the current market environment

3rd Quarter | 2021

Market insights and analysis

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Updates on how dynamic, risk-managed investment solutions are performing in the current market environment.

Gold prices hit $1,800 per ounce last week, a level last seen back in 2011 (see the following chart). This occurred as COVID-19 cases in the U.S. increased, causing many states to pull back on reopening.

For the second quarter, gold posted a gain of nearly 13%. This was its largest quarterly percentage increase since 2016.

Alex Ebkarian, chief operating officer at Allegiance Gold, sees everything lining up for a continuation of the current gold bull market. As MarketWatch reports, “The direction of real interest rates matters the most, [Ebkarian] said. Since those are near zero in the U.S., ‘gold’s position is far more compelling than bonds.’”

Ebkarian adds, “Considering the trifecta global, financial and health crisis, uptick in inflation, market uncertainties, [and] weakening dollar, investors can best position themselves by moderately, proactively diversifying a portion of their portfolio in physical commodities and taking a mid- to long-term approach. … History tells us that post government and Fed interventions and bail outs, gold could double and silver quadruple, as it did between 2008 and 2011.”

Rick Andrews is president of Avant Capital Management.



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