Market Alert: Today’s Stock Market Plunge Fuels Gold and Silver

Precious Metals

Shocked by today’s news? The stock market continues to plummet after a recession warning and last week’s announcement of China devaluing its currency. The good news is that the price of gold is over $1,500 and shows no signs of stopping!

Today’s market news fuel tomorrow’s investors who will make their move to secure their retirement with gold and silver. But don’t take our word for it! See some of the latest headlines on the rising value of gold and silver amidst the worst stock market crash since 2006:

  • FoxBusiness: Dow plummets 800 points on worsening global recession fears
  • CNBC: Gold Could Hit $2,000 in a World of $14 Trillion in Negative Yielding Debt
  • Livemint: Gold Prices Surge to Record Highs, Silver Rates Zoom

Gold prices are positioned to rise in the current volatile market environment, thanks to its dual functionality as a currency and a commodity.

Every Investment Portfolio Needs Gold.
-Mark Mobius (Fund Manager, Franklin Templeton)

As a currency, gold and silver are attractive safe-haven investments both when the dollar weakens and equities become more risky. As a commodity, their performance is all about supply and demand. As is the present case, the range of geopolitical and world trade concerns is a driving factor for the rising price of and interest in gold and silver.

When you look at demand for gold and silver, it’s very healthy today, compared to the volatility of the stock market. Over the last 30 days, their reputation for investment stability and resiliency in a temperamental environment flanked by trade wars, interest rate cuts, and increasing inflation has demonstrated their burgeoning value in turbulent times like these.

​​That’s why it’s more important than ever for investors to diversify their portfolios and protect their assets before the next market crash. Only through proper diversification, such as by investing in gold and silver, can investors ensure that their assets won’t be ravaged by the coming stock market downturn

Most investors probably don’t realize that over the long term, gold outperforms stock markets too. Since 2000, the price of gold has increased by more than 400% and silver has increased by more than 200%. Compare that to the Dow Jones Industrial Average over the last 20 years with a 125% return. (source: Macrotrends) Market drops, like today, signal the need for investors to take immediate action to protect their portfolio.

Business production is stagnant or declining, Federal Reserve rate cuts will hit banks and financials hard, and unstable weather patterns in much of the country is going to decimate the agricultural sector. Throw in tariffs and trade war and there’s no reason to be optimistic about the direction of the economy. As the saying goes, markets can stay irrational longer than investors can stay solvent…but not for long.

Gold is outpacing returns in comparison with the volatility of the stock market precisely because so many people realize that the economy is not in great shape. Those who are still buying stocks fall largely into two camps: corporations buying back their own stock, and computerized algorithms. The rest of us human beings are just sitting back waiting for the house of cards to come crashing down.

So if you were wondering when the crash is coming, all signs point to today. It’s all but inevitable at this point. If you’ve already made the move into gold, give yourself a pat on the back for your foresight. We’ll see the stock market continue to crash, while gold continues to shoot skyward. And if you haven’t made the move into gold yet, hurry up and do it soon while gold and silver is still on the rise. Analysts projects gold to skyrocket to $2,000 based on today’s market drop and its continued attractiveness in a world of uncertainty.

This article was originally posted on Goldco.

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