Haven assets losing their mojo in virus-stricken market

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A rush to safety amid a massive drop in stocks has stretched prices for haven as...

NEW YORK - A rush to safety amid a massive drop in stocks has stretched prices for haven assets, leaving investors fewer places to hide in the wake of a freshly-minted bear market.

That avalanche of buying has skewed the normal trading patterns of many haven assets, leaving investors vulnerable to unexpected price swings and periods of illiquidity, adding an extra dimension of risk to a market already fraught with pitfalls. Meanwhile, liquidity in the $17 trillion Treasuries market has deteriorated to its worst levels since the financial crisis, traders said. Some market participants have in recent days complained of being unable to get a satisfactory market price, a result of too many buyers and not enough sellers.

At the same time, a sustained rise in the Japanese currency could leave it near levels that could prompt the Bank of Japan to curb its strength, some analysts believe. A strong currency tends to make a country’s exports less competitive abroad, an outcome Japan’s struggling economy can ill afford. Damien Bisserier, partner at Advanced Research Investment Solutions, believes the wild fluctuations in Treasuries and other haven assets will eventually subside.

 

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Metal don't matter when water runs dry. All your trinkets and coins are useless when capitalism fails. And it's very very obvious it has without a doubt failed. Material means nothing if everyone is dead.

There is no alternative to physical gold.

Yes...

they're piling up cash for preparation to buy stocks after the endemic end

Physical gold and silver is selling out fast though. Long waiting times to buy some!

It was mostly margin calls of other positions which has been the common mistake of traders do all the time. “Sell the profitable positions to cover losing ones.” If you have a shop selling red and black dresses and red sells like hot potato but black not.Which one do you restock?

Physical gold delivery takes already weeks in the Netherlands. Please see difference with paper gold and silver.... COVIDー19

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