If there is a sudden market drop like in March, will gold and silver repeat a corresponding drop?
thisistheshow
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In March gold and silver spot price went the way of the market.
I'm only asking because, imo, we are two weeks away from a sudden but probably less severe market drop.
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In a panic flight to "liquidity" (e.g. dollars) almost all assets sell off, which means prices decline and that's deflationary
Liberty: Parent of Science & Industry
Agreed
Many major Funds also invest in PM ETFs as part of their portfolio, purely as a hedge. Their logic is, sell the PM investments when the stock market falls. This infuses the fund to balance the losses out. Most funds are part of peoples 401k or IRA with regular deposits from their paycheck.
My main funds are higher now than before the crash.
I guess you were watching Cramer last night?
Knowledge is the enemy of fear
If PM's are so closely related to stock price movement, why did they decline in prior years while equities gained? They are not related. You wanna know what PMs are gonna do? Watch what the FED does, not what it says. The FED has driven the rise in PMs.
My guess is that when the equity bubble takes its next big hit, PMs will benefit. Oh, and the old story about "cash on the sidelines" is BS. There is never any more cash on the sideline: For every asset sold to gain cash, an equal amount of cash was removed from the sideline to buy the asset.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
No I wasn't, ...😂😂 But I did see a link to his prediction.
Really? What about that MMT and QE and printing presses you rant about? Even jmski would challenge you on that.
Knowledge is the enemy of fear
Oh, and the old story about "cash on the sidelines" is BS. There is never any more cash on the sideline: For every asset sold to gain cash, an equal amount of cash was removed from the sideline to buy the asset.
There's tons of cash on the sidelines, along with the 100's of tons of cash on the 10 yard, 20 yard, 30 yard, 40 yard and 50 yard lines as well, courtesy of the Fed.
This market is going to equilibrium fairly soon.
I knew it would happen.
Finally admitting the FED is propping up the markets? Oooh, baby steps.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
What about that MMT and QE and printing presses you rant about? Even jmski would challenge you on that.
There's not much cash on the sidelines because the Fed has put about 75 extra players on the field all at once. All of these new players don't have any time to sit on the sidelines - they can't make new jerseys as fast as the Fed is dumping cash into the system.
I knew it would happen.
FED's cash infusions don't sit on the sideline. They are inserted directly at the pump station. Some assets are now being bought directly by the FED's trading desk. Pretty soon they will have their own stock exchange and financial news channel (other than MSNBC).
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
Back to the topic at hand, John Rubio explains it best: "When the broad markets tank, panicked investors tend to throw the undervalued babies out with the overvalued bathwater. In the flash-crash of last March, for instance, plunging stocks dragged gold along for the ride. Note gold’s dramatic recovery beginning in May of this year, and imagine what it will do if interest rates go negative and government deficits double from here."
Now is a good time to stack cash. The next equity blowup should provide temporary PM buying opportunity.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
Ive stated this round of stimulus is much different than in 2008. Are your ears and eyes and mind really that closed?
I believe i also stated there was going to be a huge equity rally....to which you laughed. Dont be so daft.
Knowledge is the enemy of fear
Oh jmski.
Knowledge is the enemy of fear
And I believe I have made it clear that price inflation goes where there is money supply inflation. Bubble, again? LOL
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
Bubbles are awesome. Sorry you missed out.
Knowledge is the enemy of fear
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
What's amazingly awesome about Magic Money Tree is how it changes pricing of the things one can buy with money!
Some price go up, some go way up!
Some go down, some go way down!
Some stay about the same, year in and yeat out!
that's some magic money that affects products, services, investments all differently!
Liberty: Parent of Science & Industry