Studying the 10 year chart with Gold and Silver in comparison to the DOW the reality is that price fluctuations can be affected dramatically. In 2008 both Gold and Silver dropped dramatically after the Dow began it`s downturn with a slight delay. Both Gold and Silver rebounded before the Dow hit rock bottom. The difference today is everyone is aware of the financial magnitude which was not expected back then. The question to ask today is will history repeat itself as far as reaction of prices in a Dow bear market today. Part of the equation would be a few I will mention.
Margin Call`s: Cash strapped investment that are forced to sell everything including Gold and Silver holdings.
Countries selling large amounts of Silver and Gold stockpiles to meet financial needs.
Both precious metals rallied during the initial Dow top and then crashed a month or two after the DOW began it`s decline. In similar fashion today we are seeing a rally with Gold and Silver indicating investors opinion on the current Bull Market with expectations of a possible bear market to come. Nothing is a given as usual with the market but if going by historical charts it can increase the odds of success with investments. We are probably seeing the last year of the overall bull market. Volatility can be expected with even Gold and Silver. It is not a given that both will just keep rising without substantial corrections if going by 2008. The part that is frustrating is usually once we find all the answers to the market questions the questions can be changed and then it`s am learning lesson all over again. With that in mind we all should be humble with opinions because even the big money out there don`t always get it right.
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