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silverharp

Gold and Stock market corrections?

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If there is a servere correction in the main stock markets say >10% how does physical gold react during such an event. Say after 87', 97 and the like. either gold benefits as a safe haven, or given that hedge funds tend to come under stress during financial dislocations, they may be forced to sell profitable gold positions to cover other margins? any thoughts

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Gold fell with world wide stock mini-correction today.

 

Though maybe because of the Chinese 10% drop trading halt, this may take a few days to work itself out. I'll be buying AU natural gas shares in a week or so if there have been a few days with no falls.

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They might not let the bulls out

 

the bears are well in control on stocks.

margin calls may drive gold stocks lower - but they have sold some relative strength

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They might not let the bulls out

 

the bears are well in control on stocks.

margin calls may drive gold stocks lower - but they have sold some relative strength

 

Bullion seems to be holding, currently around 675.

 

Frank Barnera is seeing grim times for everything except gold and "possibly" oil stocks:

 

http://www.financialsense.com/Market/wrapup.htm

 

Oil majors also seem to be affected by a relatively small amount down. Some of the juniors are actually up.

 

Is now perhaps a good buying time on gold and oil as investors go for quality. Or should we let the dust settle?

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Can someone explain this further? With the world economy showing signs of stress, it would makes sense for me to transfer my capital to gold until the markets quietened down...but i see gold is quite stable although not jumping up to much, is this becasue investors prefer cash in these scenarios??

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Can someone explain this further? With the world economy showing signs of stress, it would makes sense for me to transfer my capital to gold until the markets quietened down...but i see gold is quite stable although not jumping up to much, is this becasue investors prefer cash in these scenarios??

 

From what I have been reading, there will be another market correction, - a big fall that will take down gold and oil once more. Then perhaps will be the time to buy.

 

Gold future is a whopping 80 points up now, - im very tempted to do a put on it since i reckon it will fall early next week.

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From what I have been reading, there will be another market correction, - a big fall that will take down gold and oil once more. Then perhaps will be the time to buy.

 

Gold future is a whopping 80 points up now, - im very tempted to do a put on it since i reckon it will fall early next week.

For better or worse, Im counting bullion as “cash” in my portfolios. Bullion, not shares. And Im heavy cash of all types. I too am expecting a hic-cup much more ferocious than Feb 28 (a la Fabers comments early January), and I expect all equities including gold equities to fall in sympathy. When the dust settles this will be a buy opp I intend to fully exploit like a child let loose in sweetshop :)

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I too am expecting a hic-cup much more ferocious than Feb 28 (a la Fabers comments early January), and I expect all equities including gold equities to fall in sympathy. When the dust settles this will be a buy opp I intend to fully exploit like a child let loose in sweetshop :)

Ditto. I always have some cash ready to buy on the corrections. Thus far stocks have always bounced back and it has been an easy way to make around 3 to 5%, sell then wait for the next one. It helps to have a definite plan, so if the market fell 5% tomorrow what would you buy ?

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Ditto. I always have some cash ready to buy on the corrections. Thus far stocks have always bounced back and it has been an easy way to make around 3 to 5%, sell then wait for the next one. It helps to have a definite plan, so if the market fell 5% tomorrow what would you buy ?

 

DP, 5% is not big enough. We need fear. At only 5% is would depend on the particular stock. I'd like to recommend HF, but it's doubled since mid-Jan. I like agric commodity companies generally, almost as much as uranium. For uranium, MGA is a keeper, bought some ASX today (speculative bigtime). All TSX stocks. I'm looking for a real thumpin 10%+ down across the board before I'd get v interested here, an opp for wholesale portfolio re-adjusting.

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