September 23, 2011
Gold and Silver are declining sharply in the face of global economic uncertainty, low interest rates and confusion over inflation. 2011 maybe a long way from 2008, but after the recent and dramatic run up, the price action is eerily similar are acting similar to 2008. In the last recession we saw almost every asset class become fully correlated. Bonds, stocks, REITs, commodities and even hedge funds dropped as liquidity and cash became king. Gold and silver are now acting in a similar fashion to what was seen when there was a mad rush to liquidate whatever asset was available.
In a “typical” economic slow down, investor’s generally show a flight to tangible goods as they want to own things that as Dennis Gartman would say “Hurt when they are dropped on his foot”. Gold and Silver typically have been a good hedge against economic slowdowns with the exception of 2008 and Read more