jim4silver
Silver Member
- Apr 15, 2008
- 3,662
- 495
Some are saying the stock market is due for a nice correction. Last time that happened PMs went down with it. However what is different this time is that while stocks are at record high levels, PMs (gold and silver) are already at very low levels relative to their historical highs.
I have no clue if the stock market will take a hit or not, but if it does I believe a good portion of the $$$ fleeing stocks will go into gold and silver since there is not much else to put it into right now except cash (bonds are not doing too well anymore).
Some are saying that if interest rates go up much more (like 10 year note) that it will cause the Fed big problems because much of what they have been buying up is based on lower interest rates and a move up in rates will cause said assets to lose value quickly. Perhaps this is why they may taper QE and not because there is any real improvement in conditions of the economy?
If that happens they will probably come up with some other form of stimulus to keep things going but maybe something not as dependent on interest rates?
Just my opinion.
Jim
I have no clue if the stock market will take a hit or not, but if it does I believe a good portion of the $$$ fleeing stocks will go into gold and silver since there is not much else to put it into right now except cash (bonds are not doing too well anymore).
Some are saying that if interest rates go up much more (like 10 year note) that it will cause the Fed big problems because much of what they have been buying up is based on lower interest rates and a move up in rates will cause said assets to lose value quickly. Perhaps this is why they may taper QE and not because there is any real improvement in conditions of the economy?
If that happens they will probably come up with some other form of stimulus to keep things going but maybe something not as dependent on interest rates?
Just my opinion.
Jim
