Imagine what the world would look like if SPX and SLV correlated as they did until around 2011? SPX would be at 1,400 instead of having risen to 3,400. Those of us who have been involved with precious metals know what PAIN is. I remember a few years back, I heard Mike Maloney or some other metals commentator say that when markets normalize, one will be able to buy a decent sized house for 1,000 ounces of silver. That thought has always been in the back of my mind. And now, as the Fed "bazookas" the economy with a new round of even greater QE, and markets continue to deteriorate, I wonder if that time is at hand.
Up to now, the stock market's fall is a mere garden variety "correction" having not even hit a 50% retracement. It is beginning to expose the big sham that the debt-driven economy has been. Fixing debt problems with even more debt is just not sustainable. Kudos to Peter Schiff who has been calling the situation so precisely for years now. While things don't always play out in the timeline that we hope for, some things are just inevitable.
What will the world look like if stocks correct as silver has done? Will the chart flip flop with precious metals reaching unimaginable highs? Again, those prices are only in dollar terms. When thinking of precious metals, it's best to always relate your holdings in ounces or other weight metrics instead of in dollar terms. That really defeats the whole underlying principle of buying precious metals. The dollar is merely smoke and mirrors.
Up to now, the stock market's fall is a mere garden variety "correction" having not even hit a 50% retracement. It is beginning to expose the big sham that the debt-driven economy has been. Fixing debt problems with even more debt is just not sustainable. Kudos to Peter Schiff who has been calling the situation so precisely for years now. While things don't always play out in the timeline that we hope for, some things are just inevitable.
What will the world look like if stocks correct as silver has done? Will the chart flip flop with precious metals reaching unimaginable highs? Again, those prices are only in dollar terms. When thinking of precious metals, it's best to always relate your holdings in ounces or other weight metrics instead of in dollar terms. That really defeats the whole underlying principle of buying precious metals. The dollar is merely smoke and mirrors.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.