Dryblower's canary is singing a golden tune

THE gold canary is singing, and it could get a lot louder in the second year of the Trump presidency, causing Dryblower to wonder whether gold, as the world’s ultimate safe-haven investment, might stretch out its recent upward run to US$1400 an ounce, and beyond.

Dryblower's canary is singing a golden tune Dryblower's canary is singing a golden tune Dryblower's canary is singing a golden tune Dryblower's canary is singing a golden tune Dryblower's canary is singing a golden tune

Like canaries once used by coal miners to provide an early-warning of deadly gases such a methane, the gold canary is the metal itself, performing a similar function as the feathered variety, with a rising gold price a reliable early warning of trouble ahead.

It wasn’t supposed to be this way in 2018 with rising interest rates seen as a reason for investors to lighten their exposure to non-interest-bearing gold and shift their funds into other asset classes.

Some of that rotation of funds out of safe havens is underway as the world pushes ahead with an attempt to normalise asset values after the global financial crisis of 2008, and as the resulting flood of cheap money starts to dry up.

Gold, if...