silverharp Posted February 27, 2007 Report Share Posted February 27, 2007 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 Link to comment Share on other sites More sharing options...
Bubble Pricker Posted February 27, 2007 Report Share Posted February 27, 2007 Last May, gold fell along with stocks. I guess the straightforward explanation is that as investors took fright, they pulled out of everything Link to comment Share on other sites More sharing options...
HiredGoon Posted February 28, 2007 Report Share Posted February 28, 2007 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. Link to comment Share on other sites More sharing options...
drbubb Posted February 28, 2007 Report Share Posted February 28, 2007 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 Link to comment Share on other sites More sharing options...
Newbear Posted February 28, 2007 Report Share Posted February 28, 2007 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? Link to comment Share on other sites More sharing options...
bob monkhouse Posted March 16, 2007 Report Share Posted March 16, 2007 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?? Link to comment Share on other sites More sharing options...
Rikk03 Posted March 16, 2007 Report Share Posted March 16, 2007 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. Link to comment Share on other sites More sharing options...
Walktothewater Posted April 5, 2007 Report Share Posted April 5, 2007 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 Link to comment Share on other sites More sharing options...
DontPanic Posted April 5, 2007 Report Share Posted April 5, 2007 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 ? Link to comment Share on other sites More sharing options...
Walktothewater Posted April 5, 2007 Report Share Posted April 5, 2007 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. Link to comment Share on other sites More sharing options...
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