Looking back over the past 12 months, I’m not surprised to see that my five most popular and widely shared posts of 2018 involve gold (with one exception). With many stocks falling into correction territory or worse, the yellow metal emerged as a standout asset in the fourth quarter on safe haven demand. Senior gold miners, as measured by the NYSE Arca Gold Miners Index, also performed well, rising more than 13 percent in the December quarter.
That said, below I count down my five most popular posts, beginning with a story about Texas, the home state of U.S. Global Investors.
The Texas Bullion Depository, the first of its kind in the U.S., officially opened to the public in Austin in early June, capping three years of planning and construction. At the time, Texans were able to deposit their gold and other precious metals at an already-existing facility. Earlier this month, though, officials broke ground on a new, state-of-the-art, 40,000-square-foot facility in Leander, Texas, just north of Austin.
This is wonderful news. Because Texas is such a trend-setting state, it might encourage other states to look into creating their own depositories. It also has the potential to attract even more investors to precious metals, which I believe are crucial components of any well-diversified portfolio.
For most of 2018, the gold bears were large and in charge, with hedge funds shorting the yellow metal in record numbers this past summer. A major contributor to this is gold’s negative correlation to the U.S. dollar, which was strong relative to other major world currencies throughout the year.
A bottom in gold prices looked especially likely after Vanguard, the world’s largest mutual fund company, announced it was closing its precious metals and mining fund. Back in 2001, when gold had similarly found a bottom, Vanguard dropped the word “gold” from what was then the Gold and Precious Metals Fund, and the change coincided with a decade-long precious metals bull run.