Only three other times in history precious metals surged while oil plunged! All of them happened during severe bear markets and recessions. Buckle up, folks.
When oil starts to drop at the same time gold takes off, it’s a sign that the economy is in danger. A slowing economy means less demand for oil, leading to a price drop, while increased gold demand from investors who see the recession on the horizon leads gold to rise. We’re seeing that pattern today, which means the next few months will be very scary for investors who try to stick to stock markets.