Friday 8:30am Eastern Australia time
The stock market collapse is ‘on’ for real now. Following a 10% drop last tonight, the Dow has dropped from just shy of 30,000 a week or so ago, to just over 21,000 today
The hysterical, virus infected media won.
What is surprising, and troubling many is that the dollar price of gold ($POG) is also showing extremes of volatility. The expectation was, with panic finally reaching the stock market, that the dollar price of gold would reflect a flight to safety – i.e. a soaring $POG.
Well, it does and it doesn’t, the $POG is soaring and falling like a yo-yo.
My read is that this is the action of gold owners who are also getting margin calls on their stocks and are having to sell the ONLY thing that has much of a bid at the moment. i.e. they need dollars desperately and are selling their gold and silver because it’s the only thing that they can sell – the only thing that is still wanted.
While there will continue to be dips in the $POG, this is truly the time to get out of any spare currency that you have and use it to get into gold and/or silver.
I am hopeful, desperately so, that it is not the last chance, but there can be no guarantee of that.