If there is a sudden market drop like in March, will gold and silver repeat a corresponding drop?

thisistheshow

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.

Baley

In a panic flight to "liquidity" (e.g. dollars) almost all assets sell off, which means prices decline and that's deflationary

thisistheshow

@Baley said:
In a panic flight to "liquidity" (e.g. dollars) almost all assets sell off, which means prices decline and that's deflationary

Agreed

isaiah58

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.

cohodk

@thisistheshow said:
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.

I guess you were watching Cramer last night?

derryb

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.

thisistheshow

@cohodk said:

@thisistheshow said:
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.

I guess you were watching Cramer last night?

No I wasn't, ...😂😂 But I did see a link to his prediction.

cohodk

@derryb said:
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.

Really? What about that MMT and QE and printing presses you rant about? Even jmski would challenge you on that.

jmski52

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.

derryb

@cohodk said:

@derryb said:
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.

Really? What about that MMT and QE and printing presses you rant about? Even jmski would challenge you on that.

Finally admitting the FED is propping up the markets? Oooh, baby steps.

jmski52

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.

derryb

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).

derryb

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.

cohodk

@derryb said:

@cohodk said:

@derryb said:
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.

Really? What about that MMT and QE and printing presses you rant about? Even jmski would challenge you on that.

Finally admitting the FED is propping up the markets? Oooh, baby steps.

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.

cohodk

@jmski52 said:
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

There's not much cash on the sidelines

Oh jmski.

derryb

@cohodk said:

I believe i also stated there was going to be a huge equity rally....to which you laughed. Dont be so daft.

And I believe I have made it clear that price inflation goes where there is money supply inflation. Bubble, again? LOL

cohodk

@derryb said:

@cohodk said:

I believe i also stated there was going to be a huge equity rally....to which you laughed. Dont be so daft.

And I believe I have made it clear that price inflation goes where there is money supply inflation. Bubble, again? LOL

Bubbles are awesome. Sorry you missed out.

derryb

Baley

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!