The recent sell offs in the stock market are causing some investors to look into gold as a safer investment choice. On Tuesday, gold closed at $1756.20 an ounce, up $13.20 for the day. However, gold may not be as safe as it appears. In this CNNMoney video, Poppy Harlow talks about the commodity with gold options trader Mihir Dange with Arbitrage LLC.
Dange explains that typically equity sell offs and gold sell offs go hand in hand and points to 2008 as a prime example. However, the recent stock market volatility has led to an increase in gold prices. While the investment might look like a safe avenue for your savings, gold is also experiencing quite a bit of volatility with overnight trading ranges varying by up to $50.
If you are thinking about moving some of your investments into gold, then Dange’s video will certainly give you some insight into the market for this commodity.