All US markets crashed hard on Friday in an epic landslide as stocks took a downhill thrill ride for the record books. Bonds and Bitcoin joined the collapse!
so why does gold and silver fall with everything else? isn't it supposed to be where capital flees to. Especially with the upcoming money printing to the rescue, the debt that constrains real inflation that will be prevented. the government really can't afford deflation.
I found that curious, too. EVERYTHING fell it seems, making Friday's crash particularly unusual. Money also didn't flee to bonds, or yields would not have gone up. I'm still thinking about why gold and silver fell. I hope to come across an answer. If I find one that satisfies me, I'll certainly let you know.
One possible answer is this one, given to a similar all-market move back in January:
"What makes this move especially notable is that all major asset classes are falling at the same time, including stocks, crypto, and even traditional safe havens like gold and silver. This type of price action is typically associated with forced selling, margin calls, and risk-off positioning, where investors sell whatever they can to reduce exposure and raise cash."
That was the first thought that came to my head also when I read your question, having wondered the same thing earlier. It seems like there were very likely a lot of leveraged positions, futures trading, etc, that had to raise collateral. They got into big trouble, and investors cashed any safe-haven asset they had to avoid margin calls that would tip out greater paper fortunes. That would speed again to how broad and serious the sell-off was. But I'll keep thinking about it.
Another possibility--though it seems a little less likely--would be some foreign outfits hit tank bottoms and they needed to raise dollars to buy American oil.
so why does gold and silver fall with everything else? isn't it supposed to be where capital flees to. Especially with the upcoming money printing to the rescue, the debt that constrains real inflation that will be prevented. the government really can't afford deflation.
I found that curious, too. EVERYTHING fell it seems, making Friday's crash particularly unusual. Money also didn't flee to bonds, or yields would not have gone up. I'm still thinking about why gold and silver fell. I hope to come across an answer. If I find one that satisfies me, I'll certainly let you know.
One possible answer is this one, given to a similar all-market move back in January:
"What makes this move especially notable is that all major asset classes are falling at the same time, including stocks, crypto, and even traditional safe havens like gold and silver. This type of price action is typically associated with forced selling, margin calls, and risk-off positioning, where investors sell whatever they can to reduce exposure and raise cash."
( https://www.ccn.com/education/crypto/bitcoin-price-crash-gold-silver-3t-plus-global-selloff-liquidations-continue/ )
That was the first thought that came to my head also when I read your question, having wondered the same thing earlier. It seems like there were very likely a lot of leveraged positions, futures trading, etc, that had to raise collateral. They got into big trouble, and investors cashed any safe-haven asset they had to avoid margin calls that would tip out greater paper fortunes. That would speed again to how broad and serious the sell-off was. But I'll keep thinking about it.
Another possibility--though it seems a little less likely--would be some foreign outfits hit tank bottoms and they needed to raise dollars to buy American oil.
All fiat fails ,when, ALWAYS !!! When Trillions become Zillions !! Before ?