Correlation Between Stocks & Gold/Silver Continues to Persist
The correlation between stocks and gold/silver continues to persist.
Many see gold and silver as a hedge against a weak stock market but this isn't always the case as you can see in the comparison chart the last couple of weeks.
If stocks begin selling off with more velocity this trend/correlation will only strengthen as we've seen in past sell-offs. 2008/09 and this March are good examples that when equities get hit hard, most asset classes follow suit and correlations near 1.
Many see gold and silver as a hedge against a weak stock market but this isn't always the case as you can see in the comparison chart the last couple of weeks.
If stocks begin selling off with more velocity this trend/correlation will only strengthen as we've seen in past sell-offs. 2008/09 and this March are good examples that when equities get hit hard, most asset classes follow suit and correlations near 1.