Why gold was the best buy in 2008-9 crash and will be this time too

Jon Banking, Economy, Fiscal Policies, Gold, Market Commentary, Precious Metals, Silver

What was the best asset class to buy for the recovery that followed the 2008-9 crash in global financial markets? Step forward gold whose rise was only exceeded by silver.
Precious metals not only delivered the fastest recovery from that huge sell-off but offered increases way above the pre-crash levels. Gold tripled from its low in the crash, while silver went on to record an eight-fold increase, still just shy of its 1980 all-time high.
Deja-vu all over again
It is not hard to see history repeating itself all over again. Just look at the Chinese central bank this week cutting interest rates, just like the Fed had to do in 2008-9.
Back then that lit a fire under precious metals because of the inflation that was likely to follow. And inflation certainly did follow if you think about house prices and stock market prices but they were slower to deliver returns to investors than gold and silver up until 2011 when precious metal prices peaked.

This post was published at GoldSeek on 26 August 2015.