The Gold Bull Isn’t Dead: Global Instability Fuels Precious Metals

The article Bill Cara published this morning is derived from his extensive notes written on Saturday in his 643-page Global Navigator Report. He argues strongly that Friday’s sharp sell-off in the precious metals market does not signal the end of the long-term gold bull market. He contends that media outlets often amplify fear to encourage impulsive trading, but historical context shows that gold’s true value comes from global instability. Rather than being solely an inflation hedge, gold functions as a barometer of confidence in the financial and political order, thriving during periods of systemic doubt like the Great Depression and the COVID-19 Pandemic. This ongoing era of profound geopolitical uncertainty is identified as the durable fuel for the current market, making short-term dips an opportunity for investors with conviction. His article concludes by recommending that investors focus on the macro trend of instability and use price weakness to add to high-conviction positions in resilient stocks.