Investing Live: In This Market, Just "Buy Shiny Stuff": SocGen
Article by Justin Low in Investing Live
The firm points out that precious metals have outperformed all currencies and other commodities in recent months, with gold up 22% in the past three months and silver up even more by 24% in the same period.
They underline the stark contrast in asset performance with the South African rand being the best performing currency against the dollar during this period, being up just 4%. So, that speaks to the weight of gold's outperformance.
Societe Generale argues that while this initially was a case of dollar-specific weakness, it is now starting to shift towards global fiat debasement concerns.
That as the likes of platinum and palladium are also rallying alongside gold, which reflects a broader trend in chasing "real assets".
As things stand, the firm is of the view that the dollar remains "overvalued in .....