Gold Got Dumped for Cash, That’s Exactly Why You Own It | Adrian Day

Gold fell back under $4,000 as AI stocks slid, and Adrian Day says that’s the metal doing its job. When markets crack, investors raise cash, and gold is one of the things they always sell. “That’s exactly what you own gold for,” says the chairman and CEO of Adrian Day Asset Management.

At the New Orleans Investment Conference, Day tells Kitco News anchor Jeremy Szafron he sees strong support near $3,650 and doesn’t expect a V-shaped recovery, but he remains “extremely bullish” on the fundamentals. He points to past market shocks, from 1974 to 2008, after which he says gold and gold stocks returned 50% to 100% within 12 to 18 months, and to clients he has seen sell out and never get back in.

The miners, he argues, are in the best shape they have ever been, with margins wide enough to absorb rising diesel costs and cash flow growing faster than any other S&P sub-sector over the past three years. For anyone who already owns some physical gold, he thinks the stocks are the better buy today, and he expects generalist money to return once the S&P 500 falls for a few months in a row. After the reported hack of crypto exchange Binance, he also makes the case that physical gold “can’t be…