How Will Gold Perform in the Coming Equity Crash? 36 comments
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The multi-billion dollar question for precious metal investors today has to be how gold will perform as this sucker’s rally in stocks goes spectacularly bust.
Retail equity investors will surely wake up last, having not noticed that insiders and professional traders have been putting their shorts on or selling in the past week or so. In the equity rout we saw last autumn gold and silver stocks plunged with the rest, and even the precious metals themselves were sold off as funds scrambled to raise cash to meet margin calls. Will it be the same story this time? It has to be said that the straightforward dash from equities to bonds no longer looks such a sure bet. Bond yields have been rising, and prices falling recently, and many professional investors are seriously worried about the risk of putting money in bonds which are supposed to be the safest of safe havens. Is it not possible then that gold and silver will now take up this role, and that therefore precious metals rather than bonds will be the principle beneficiary of the next equity crash? Certainly the fall in the dollar index at the end of last week to levels that foreign exchange markets see as a sell indicator could be a signal that a dash for cash will not be so evident. The Fed is printing money with a vengeance and bond markets are facing an oversupply of new issues. Selling equities for dollars and bonds is the perfect rotation for the investment sector but in serious recessions markets have a nasty habit of not behaving according to the best laid plans. In short, the models made under one set of economic circumstances can not handle a new reality, like quantitative easing. Whether this is an argument for staying long on gold and silver stocks into an equity collapse is harder to tell. A rising tide raises all ships, and a storm tends to sink them. It could be a time to lighten up on the momentum driven larger stocks, although whether selling smaller stocks makes much sense is not clear – many of them have barely recovered from the last rout. However, the big call is on precious metal prices in an equity crash. Will money flow into gold rather than bonds, or at least enough of it to raise precious metal prices? That looks increasingly likely.
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On May 11 01:34 PM JEWS KILLED WIM DUISENBERG wrote:
> Pigs, jews, Americans, Pedophiles (95% of s.a.) are not allowed to
> click website. Those that will, will be hanged in the public in the
> city center. Obey the Law! Keep away!
>
>
> Equity Crash?
> The jerk (you) is long it's shit losing 60% and screams equity bust.
On May 11 01:34 PM JEWS KILLED WIM DUISENBERG wrote:
> Pigs, jews, Americans, Pedophiles (95% of s.a.) are not allowed to
> click website. Those that will, will be hanged in the public in the
> city center. Obey the Law! Keep away!
>
>
> Equity Crash?
> The jerk (you) is long it's shit losing 60% and screams equity bust.
Please realize this is an adult website no children allowed. Mind the adults now oh foolish child and go play in the street.
On May 11 01:34 PM JEWS KILLED WIM DUISENBERG wrote:
> Pigs, jews, Americans, Pedophiles (95% of s.a.) are not allowed to
> click website. Those that will, will be hanged in the public in the
> city center. Obey the Law! Keep away!
>
>
> Equity Crash?
> The jerk (you) is long it's shit losing 60% and screams equity bust.
If it was easy to time the market, we'd all be rich. I thought the housing market would start downward in 2005 and it continued up for another two years... I, too, think this is a sucker's rally. With all the money that is being printed, I don't think you can seriously think that gold/silver won't rise over the long haul. It may not be today, this month, or even this year, but gold and silver will break out when the average joe realizes that Bernake, Geithner, and Obama have no magic bullets left... When the average joe sees his meager savings eroded by inflation, he is going to run to PM. One of the major factors in keeping PM down is that the average joe does not know how bad things really are. Even American Idol devotees will eventually get it....
On May 11 01:34 PM JEWS KILLED WIM DUISENBERG wrote:
> Pigs, jews, Americans, Pedophiles (95% of s.a.) are not allowed to
> click website. Those that will, will be hanged in the public in the
> city center. Obey the Law! Keep away!
>
>
> Equity Crash?
> The jerk (you) is long it's shit losing 60% and screams equity bust.
I own gold/silver coins and bullion, and I am 100% convinced that the prices of all precious metals and commodities will go higher in the future. Maybe next week? Next year? 5 years? Who knows? I really don't care quite honestly because I bought my gold/silver as an insurance policy against the corrupt politicians and Fed reserve to protect what little wealth I have.
I am very fortunate that I don't have to worry about my personal financial situation at this time but I do worry about all of the other people in this world.
Some of the posters and authors on this site should be careful about what gold/silver prices you are hoping and wishing for.
One question is, how did this article, beat out any others on the subject of coming gold prices?
Musta bin the only one, and they were desparate for grist.
Additionally, "hard to tell" is included,
AND he tells us what happened last time, [my my, how astute]
AND he says "Will it happen this time?" Geezo, if we knew that answer, we would not need Seeking A!
Author says, "Is it not possible then that gold and silver will now take up this role, and that therefore precious metals rather than bonds will be the principle beneficiary of the next equity crash?" <-----> Again, how the hell should I know, doesn't he?T
'The Fed is printing money with a vengeance..." he says. HOW much money, says I, where is it, what is the M1 etc etc not making idle statements that mean little.
and "
Gold stock implications
Whether this is an argument for staying long on gold and silver stocks into an equity collapse is harder to tell. A rising tide raises all ships, and a storm tends to sink them.
It could be a time to lighten up on the momentum driven larger stocks, although whether selling smaller stocks makes much sense is not clear – many of them have barely recovered from the last rout.
However, the big call is on precious metal prices in an equity crash. Will money flow into gold rather than bonds, or at least enough of it to raise precious metal prices? That looks increasingly likely.
I DON'T KNOW EITHER! THANKS FOR YOUR QUESTIONS, THAT SURE CLEARS UP WHAT WILL HAPPEN [maybe]
Capt Brian
This guy needs a new navigator and profession, like selling shoes maybe....
To me it's all about the variables and their interactions, and the usual tone at SA is much like having chips and a beer with investing buddies.
but that's just me.
I enjoyed the article as thought provoking. My feeling is that dollar weakness will indeed show a different signature on the gold graphs if/when this rally turns. With 50 articles, 25 each for inflation/deflation that all make sense... I'm holding gold, but not sure (beyond my gut) why... :^)
good choices to all,
--ikk
He said that most of the movement of gold was an inside job between the central bankers (part of the group) and their group. It was a setup.
I think this is pretty much the case with most investments that you can not control yourself, like your own business.
I am still an investor, but I look at investments from the prospective that "how are the big boys going to play this" That is why I am confident that a sharp pullback is imminent.
The author is worth following.....so far, IMHO.
In the run for the hills nothing is safe - last ytear proved it. The gold stocks were absolutely crushed. I'll be in short term treasuries and cash under the mattress like I was last fall.
The ghold bugs believe that a Homestake 1931-1937 is in the offing and Barrick and others rocket to the moon in the crash. I disagree.
Gold is the best insurance against catastrophic events, which another 1930 would almost certainly precipitate. And, if Cetin is correct, the Goldilocks economy will lift it as well. An insurance policy that pays you to hold is hard to beat.
On May 12 05:30 PM mtt04 wrote:
> I believe the answer to the gold stock question lies in the results
> from October to November 2008.
>
> In the run for the hills nothing is safe - last ytear proved it.
> The gold stocks were absolutely crushed. I'll be in short term treasuries
> and cash under the mattress like I was last fall.
>
i never tried gold stocks until a few months back. they were way down. i got 2 doubles and one 6 to1 out of it. part of that profit went to physical silver. if i see the explorers get hit again i will probably buy them again.
as market sniper says. gold is the constant. i buy silver and gold as insurance. the trading earns the fiat to buy the metals.