This update will be very short. Be sure to be on the lookout in the next few days for more in-depth detail.
Our stock markets are currently in freefall. We have lost over 1,900 points from our Dow in the last week. Could this be the beginning of the market correction we all have been expecting? Only time will tell. All we know thus far is we are extremely overdue for a large pullback.
Our office phones have been ringing off of the hook today with numerous questions. The main theme has been: “how does gold and silver react during market plunges like today?” If you look back to 2008 when the markets were selling off, silver dropped from $14 per ounce all the way down to $8. What most people aren’t aware of is very little PHYSICAL metal was sold during that short time period. It was nearly 100% all paper gold and silver. In fact, there was a massive physical shortage (especially in silver) and we were paying well over $15 per ounce to get our hands on it.
Is this a repeat of 2008 (or worse)? We will be monitoring this very closely and will send out updates when needed. Do not be surprised to see gold and silver spot prices come down in unison to our stock markets. This will be very short lived, but people have to pay for their margin calls after all. When market pullbacks occur, there is a mass exodus into physical gold and silver.
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