Consumers and Investors Seek Protection With Guns and Gold Read more: Consumers and Investors Seek Protection With Guns and Gold

Even after last week’s steep selloff in the commodities markets, the “Flight to Safety” trade is still on…big time. Gold may have retreated from its all-time high, but applications to purchase a handgun continue soaring to record levels.

According to the FBI, background-check applications for handgun buyers are on a record-setting pace so far this year. “In this year’s first quarter,” Bloomberg News reports, “the FBI’s Instant Criminal Background Check System processed 4.25 million requests on prospective gun buyers – up 16% from a year earlier.” If the current pace continues, the number of “gun checks” would hit a seventh straight annual record.

America’s gun-buying craze stands in stark contrast to the dismal trend of overall consumer spending. Bloomberg notes that spending on guns, ammo and other sporting equipment rose about 10% during the last 12 months – or more than four times the 2.5% increase in total consumer spending. Although spending on guns and ammo has been outpacing total consumer spending for more than a decade, the gun-buying trend has been accelerating during the last few months. (read more)