The article discusses the impact of oil shock scenarios on fixed-income markets, highlighting gold's volatility as a safe haven asset and the importance of long-term perspective for investors. It cites specific historical price fluctuations of gold and emphasizes the need for a diversified portfolio including both gold and stocks.
What is the impact of oil shock scenarios on fixed-income markets, and algorithmic traders say this hurts gold and stocks, but anything can change at any time, for patient investors. To wit,On October 20, 2025, gold peaked at $4,336 and fell 8.
5% to $3,966 a week later before soaring to $5,000. On January 29, 2026, gold fell 13%, from $5,318 to $4,622 in three days, but then soared back to $5,294. On March 2, 2026, gold fell 15%, from $5,294 to $4,482 last Friday, a third buying window in five months.prefers shorter-term views, writing on Friday about gold and silver’s “worst daily declines on record Thursday,” but certainly not the worst declines, like the 80% drop in silver and -50% gold in three months in early 1980. They also failed to mention the two examples ofBeing a gold bug often demands long-term patience . Both gold and stocks are vital portions of any portfolio, with stocks claiming the majority position and leadership role.over most holding periods since the 1960s. Whenever fans of stocks try to bash gold, they invariably show gold charts starting during a gold bubble peak – either that single day in January 1980 when gold hit $850, or the $1,900 peak in 2011, both following 10-year surges and peaking in a buying frenzy. Gold bugs tend to do the same thing, starting their charts at a market peak, like 2000, when gold was low.biased advocates use charts all the time to warp results in their favor . Disraeli reportedly said, “There are three types of lies: Lies, damned lies, and statistics.”. Gold’s average price in 1998 was $294, so even with its recent correction to $4,500, it is up 1430%, while theMost past currencies were inflated out of existence. Of those that remain, all are off 90% or more to gold in our adult lifetimes, since the 1960s. Gold is up 140-fold vs. the U.S. dollar since 1971, so today’s dollar is worth less than a 1971 penny, in gold terms.When measured against paper currencies, gold has had some long slumbers. The dollar outperformed gold for most of the 1980s, but that was a time of strong market growth, a strong dollar and strong American global leadership. This winning streak continued for most of the 1990s – but then came Y2k and 9-11.. We survived Y2k and the “dot com” bomb in 2000, so our leaders figured it would be smooth sailing from Year 1 on, but the 9-11 crisis caused two decades of seemingly paranoid and endless “wars against terror,” including high-security regulations at home, but before the 9-11 attack, we enjoyed a budget surplus winning streak. For four consecutive fiscal years, 1998-2001, we ran a federal budget surplus, with both Parties joining forces to share the credit – President Clinton and his Republican-controlled Congress. Then, in 2001, the non-partisan Congressional Budget Office predicted this winning streak would go on forever and. Specifically, the CBO’s early 2001 report projected a cumulative surplus of $5.6 trillion for the decade from 2001 to 2011.They failed to anticipate those three Black Swans flying into the World Trade Center and Pentagon, and the bloated costs of Bush’s “War on Terror” after September 11, 2001, resulting in 20-year wars in Afghanistan and Iraq,, followed by bloated TARP bailouts to save big banks. From the CBO’s document, here is their guess, and miss: All that is pretty much ancient history by now, but the endless wars, the Fed’s panicky reaction to 2008 , led to massive deficits from the end of that crisis until today, especially in the post-COVID years.. This is a single-shot graphic on why gold has soared since 2000:Gold is the clear winner so far this year , and since Y2k, out-gaining the S&P 500 by 4-to-1, +1,478% vs. +343%, while silver is a more recent winner, since 2020 or 2022 . I realize the dates here are cherry-picked, but there are a lot of other dates we could use to show gold’s superior gains. I just wish other chart-makers would also admit they choose their starting dates and ending dates to prove their case.unfortunately Gold has given no dividends. investing in s&p would have given 400% more than Gold. you do the calcs...Please review your portfolio performance in weight of gold won/lost instead of fiat currency. You'll get a totally different picture. I would add that gold is a life insurance where the premium to pay is the absence of yield. BR 🙏🏽Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks. 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Gold Oil Shock Fixed Income Investment Strategy Market Volatility