Gold's recent 29% rise year-to-date, peaking at USD $2,683 so far in September and just off of that price, is more than just an attractive trend—it’s practically the financial equivalent of wearing a life jacket in a sea of economic absurdity. For Canadian investors clinging to common sense (a rarer commodity these days than a sensible political debate), gold represents one form of stability amidst the rising tide of fiscal chaos. At Delta Harbour Assets, we specialize in protecting wealth from the unpredictable winds of global uncertainty and our very own leadership brain trust. Let’s face it: there's been no shortage of both lately.
While the TSX, S&P 500, and Nasdaq 100 have posted decent gains year-to-date—15%, 20%, and 19%, respectively—gold’s outperformance (29% YTD) is more than just numbers on a screen. It’s a neon sign flashing, “Hey, maybe we shouldn't trust the stock markets that behave like roller coasters driven by blindfolded thrill-seekers." Between the U.S.'s skyrocketing debt-to-GDP ratio exceeding 120% and the fiscal high-wire act happening here in Canada, it's a toss-up over which country is playing the more dangerous game of financial chicken. Spoiler alert: no one wins that game without a crash. Pair this recklessness with inflation risks, and it's no surprise that gold continues to shine as the common-sense choice in a world that’s spun right off its axis.
Here in the Great White North, we’ve got our own fiscal soap opera playing out. Unemployment is creeping up, wages stagnating, and Canadians are racking up record debt levels to stay afloat. Somehow, though, the media spins it like we're in an economic utopia. Maybe they're confusing utopia with delusion? Consumer debt in Canada has hit historic highs, leaving many of us using credit cards as flotation devices in this sinking economic ship. But hey, at least we’re keeping up with the Joneses—until they, too, drown in their overpriced McLarens and multi-million dollar homes, bought with borrowed money, no real-life skills, and zero understanding of hard work. And who needs that when you can gamble on Bitcoin or the latest get-rich-quick scheme?
Don’t forget real estate. Yes, that effortless thing your Uncle Pete decided to invite you in as one of the, what did he call it, oh ya, “easiest ways to make money.” Put in 20k or 30K, maybe 50K, and you can’t go wrong, or at least not for, oh, about 36 months. My invitation to exit the market was in 2021 when it felt like everybody and their Sister was into it. I was right. I am not suggesting that long-term innovative development and land ownership are not prudent. They are. Most wealthy individuals are landowners. But the simple flip is too much risk and, in my opinion, overpriced, and when everyone is doing it, why on Earth would you not take the hint to be better diversified in other assets?
Ontario, Alberta, Vancouver, and Montreal are down in value. Interest rates are nowhere near low enough to be advantageous, and the ride to the outskirts of the GTA and into Bunnypatch and Cottage Country is also over.
Meanwhile, our fearless leader, Justin Trudeau, is enjoying a freefall in approval ratings that would make even the most seasoned skydiver nervous. Under his watch, debt is climbing faster than a twenty-something delusion of grandeur. The middle class? Well, they're getting squeezed tighter than a Lululemon waistband. Keeping up with the Joneses has turned into a fast track to financial ruin, and bankruptcy could soon become the next national pastime if things don’t change.
No wonder gold is becoming one of the go-tos for Canadians with a shred of common sense left. Historically, gold has been the "safe haven" in times of turmoil, and with the dis-inversion in the U.S. bond market signalling potential rate cuts from the Fed, the appeal of gold is shining even brighter. Lower rates make non-yielding assets like gold more attractive, and that’s before we even factor in the geopolitical craziness and the global movement toward U.S. de-dollarization. If central banks are stockpiling gold like it’s the last roll of toilet paper during a pandemic, maybe it's time for the rest of us to take the hint.
For Canadians, gold isn’t just about chasing returns; it’s about preserving purchasing power in a world where prices rise faster than our paycheques. Over the past decade, gold has delivered an average annual return of 8.1%, easily outpacing inflation. That kind of performance is key for long-term thinkers—people not interested in betting the farm on whatever fad is trending this week but in building lasting, common-sense wealth.
At Delta Harbour Assets, we recommend a diversified approach to gold ownership—whether through physical holdings such as we offer, ETFs, or mining stocks, provided by your banks and trading institutions. But the real value of gold lies in its ability to anchor your wealth strategy when everything else feels as solid as a house of cards. In a world where common sense is on the endangered species list, physical gold might be the last safe bet standing—and your dual-purpose ROI and life jacket for when the proverbial poop hits the fan.
So, if you’re tired of pretending everything’s fine and ready to secure your financial legacy, now might be the time to consider adding some AU to your portfolio. At Delta Harbour, we offer common-sense solutions to help you stay ahead, no matter how wild the ride gets. And let’s be honest—at this rate, the ride isn’t slowing down anytime soon, so buckle up. Oh ya, there are no seatbelts on this ride.
Now you know. What you do with it is always up to you.
Yours to the penny,
Darren V. Long
