Vaccine success, Biden bounce: is it time to dump gold and buy the FTSE 100?

Gold bullion on a chart When the Covid-19 pandemic struck, most FTSE 100 shares crashed. Investors piled out of shares, and into gold. Bullion bounced, and the price of an ounce had soared to over $2,000 by August.

That’s not surprising. Traditionally, investors move out of stocks and into things like gold when shares get a bit rocky. Folks tend to see shares as something to make profits from, with gold held as a means of wealth preservation. People move into cash for the same reason, even in times when interest rates are tiny. Earning no interest from a savings account is still better than losing money on the stock market, right?

Gold was already slipping, and the events of the past week or so have accelerated the trend. Firstly, world stock markets reacted positively to the news that Joe Biden has won the US Presidential election. The FTSE 100 was […]

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