Steve says not to expect a repeat of 2008 with the metals crashing alongside the stock market. Mizuno Men's Training Wave Unite 2 Baseball Blue/White Training Shoe Blue mogochinese-29970/White 174b360 Here’s why we’ll see a much different outcome…
While many investors believe the gold and silver price will crash during the next market meltdown, I see a much different outcome. Yes, it is true that the metals may sell off initially in the beginning, but I believe gold and silver will disconnect from the broader markets and move up much higher.
The reason I see the precious metals disconnecting from the broader markets during the next major correction is due to the much different setup today in the gold and silver market than it was in 2008. Precious metals investors forget just how overvalued the gold and silver prices were based on technical analysis. Of course, I am not talking about the true “Store of value” properties of the precious metals, but rather, how they trade in reference to the market in general.
As I have stated many times, the paper trading market determines the price of gold and silver, not the physical buyer. Thus, the paper market will continue to control the gold and silver prices until investors realize the dollar is just another worthless fiat currency.
In my newest video, How Will Gold & Silver Trade During The Next Market Crash, I use a few indicators to explain why I don’t see a huge crash in the gold and silver prices during the next major market correction:
In the video, I
discuss how the broader markets are setting up for a significant correction
lower while the precious metals are behaving more like a coiled spring. Although, in the initial stages of
market meltdown, we could see a broad-based selloff across all markets.
Furthermore, another indicator, the Gold Hedgers Chart also provides more evidence that gold is $900 DOLCE & GABBANA Boots Yellow Tulip Print Fur Rubber Rain Shoes EU39/US8.5Tribute YSL Platform Sandals YVES SAINT LAURENT Shoes Womens Metallic BlueWomen's Beige Clary's Flats (0 to 1/2 in.), Medium Shoes US shoe size 9 , Clarks Medora Jem Womens Slip-On Loafer- Choose SZ/Color. , Franco Sarto Womens Hudley Closed Toe Loafers, Black/Black, Size 7.5BEAUTIFEEL Womens 'Saoirse' Beige Leather Pointy Toe Flats Sz 37 NEW! 229808Chic Womens Pointed Toe Pumps Pompom Ankle Strap Buckle Stilettos Party Shoes$1299 Dsquared Shoes Brown Real Leather Size US 6 IT 36 Sale 8275 , Authentic Saint Laurent YSL Tribute Two Pebbled Leather Platform Pumps Grey 38Aquazzura Spin Me Around Suede Sandal Sz 39 , FRANCO SARTO Womens 'Finesse' Gray Suede Leather Strappy Sandals Sz 8 - 230707 , Betsey Johnson Lexxe Womens Sandals Size 5.5 Black , Converse One Star Ox Men's Women's Unisex Black Chambray Trainers 160619cAirwalk Brock Skate Shoes Mens Black/Red Casual Trainers SneakersMerrell Avalaunch Tough Mudder Shoes Men's - Mudder Orange J37789NEWROCK NR M.NW158 S4 Black - New Rock Boots - MensECCO Mens SIZE Brown Vegetable Tanned Leather Walking Shoes 070 , Florsheim Mens Size 11D Ignition Black Leather Dark Gray Buckle Detail Loafers , Mark Nason Los Angeles Men's Hardee Oxford - Choose SZ/Color , OLUKAI MENS SHOES KAHU KAI DARK SHADOW OFF WHITE SIZE 9 , Men's Shoes High Top Sneakers GOLDEN GOOSE G31MS595Q7 Slide Suede White Star New , CONVERSE ALL STAR CT Chuck Taylor Multi Panel PEACOCK 8W C NIB , ASICS GEL-Kayano Trainer Evo - Black;Pink - WomensNEW WOMENS ALTRA IQ ZERO DROP RUNNING SHOES - 8 / 39 - iFIT TECHNOLOGY WARRANTY , New Under Armour Women's Lightning 2 Running Shoes - Size 5.5 - BlackSANUK CUSH N' BLAZE WOMEN ANKLE BOOTS BLACK CHEVRON KNIT US 8Carlos Carlos Santana Equinox Pointed Toe Ankle Boots, Black, 9.5 US / 41 EU , Womens Brown Gold Cross Sequins Leather Cowgirl Boots Pointed Toe , Naughty Monkey Women's Natasha Western Boot Leather Chunky Stacked High HeelNine West olive suede heeled booties, size 6.5 US M , become oversold, rather than overbought:
The gold short hedge position is now back to almost the same level as it was at the beginning of 2016 when gold was trading below $1,100 an ounce. This chart shows that when the gold hedgers position moves back towards the zero line, then the gold price is forming a bottom.
Lastly, when the Dow Jones Index fell 2,000 points at the beginning of 2016, investors flocked into gold and silver. As gold shot up in the first quarter of 2016, flows in the Gold ETF’s were the second highest in history. The quarter with the most Gold ETF inflows was Q1 2009 when the market was crashing to its lows. So, what do you think will happen when the Dow Jones falls precipitously this time around??
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Mizuno Men's Training Wave Unite 2 Baseball Blue/White Training Shoe Blue mogochinese-29970/White 174b360 - lilianasecorations.comMizuno Men's Training Wave Unite 2 Baseball Blue/White Training Shoe Blue mogochinese-29970/White 174b360
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