Why Stocks and Precious Metals Prices Fall?

Rise by the leverage, fall by the deleveraging.

This past week's fastest drop in the US stock market since July 1933 in the Great Depression validated our recent video update documenting silver and gold vs stock performances last +50 years of market recessions and bear markets. 

What we saw this past week was virtually all asset classes melting down in fiat prices. 

It was akin to what we witnessed for gold bullion and silver bullion during the spring of 2008, before the full fall 2008 Global Financial Crisis became apparent to all. Time will tell if this current situation feeds on itself leading again to bullion shortages.

The two monetary metals typically fair well throughout stock market crashes during this full fiat currency era post-1971.

If this virus continues to spread, expect further economic shutdowns, and eventual larger negative knock-on effects to come in its wake.

In the video above, we review what happened this past week with the US stock market and the four major precious metal price sell-offs.

While the derivative-driven silver and gold spot price tend to sell-off at the start of stock bear markets due to leveraged losing margin calls, it is the gold spot price that typically recovers and outperforms first to follow, silver next, then the stock market.

The last gold price 2007 - 2008 - 2009 performance proved that yellow bullion in hand outperformed every derivative and miner in gold. This safe-haven status for gold also rewarded bullion holders by 2X-ing in fiat $USD values in the two and 2/3rd years to follow.

What is Silver and Gold Bullion going to do versus US stocks later this decade and possibly into the next decade (2030s)?

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James Anderson
James Anderson
Senior Market Analyst & Content

A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.

Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades...