Is gold a hedge that rallies when stocks are falling or is gold now a risk-on / risk-off asset just like the stock market? Gold’s performance through business cycles has always been an important issue, but with tumbling crude oil prices in a freefall, it’s become very timely.

The decline in crude oil prices has more implications than most investors think – there is even a very important, yet overlooked link to the part of the bond market. The US dollar’s very strong performance (the fundamental aspect thereof is of great importance), action in the emerging markets, carry trades (not only the yen carry trade) and the issues that investors in the commodity market and – particularly – in the precious metals sector need to be aware of and take into account.

In the January 2015 Market Overview, we analyze the above-mentioned issues and discuss their implications for commodity investors in general and – in particular – for precious metals investors.