Gold hits largest value in a year, sending investors to seek safe haven for portfolios – by Ross Marowits (Toronto Star – September 9, 2017)

The Canadian Press – MONTREAL—Rising fears of a nuclear skirmish with North Korea and a large U.S. stock market correction have once again sent investors seeking a safe haven for their portfolios, helping to push the price of gold to its highest value in a year.

Amid such looming geopolitical uncertainty, the precious metal closed at its highest value in over a year Thursday — at $1,350.30 (U.S.) an ounce — but is still well short of its 2011 peak of $1,900.

This has left some observers questioning whether gold can maintain its long-standing status as the best hedge against volatility, especially in a time of aggressive monetary policy and a rise in popularity and credibility of alternatives such as Bitcoin and other cryptocurrencies.

Still, financial experts say gold should be a part of an investor’s basket of financial assets, especially those nervous about global risks. “I think gold is always attractive as a hedge against any kind of disaster, whether it be political or financial,” personal finance author Gordon Pape says.

“The valuations are extremely high so as a safe haven it never loses its lustre. When times get difficult, people go into gold.” Some market observers have warned that a large market correction is possible because the current rally is the fourth longest without a correction in modern U.S. history.

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