The Stock Market Crash Prep Kit For Silver & Gold Investors

When the topic of a stock market crash comes up, the #1 question we get from gold and silver investors is this: won’t gold and silver crash, too? And if so, should I sell my bullion now and rebuy after the crash? It’s an important topic, because while Mike and I are convinced gold and silver are headed much higher, one’s strategy can impact how much they profit. Or how little. We don’t know how big a crash might be, and we don’t pretend to know the timing, but let’s look at the best ways for gold and silver investors to prepare for this likelihood. The best place to start is by asking this question…

When the topic of a stock market crash comes up, the #1 question we get from gold and silver investors is this: won’t gold and silver crash, too? And if so, should I sell my bullion now and rebuy after the crash?

It’s an important topic, because while Mike and I are convinced gold and silver are headed much higher, one’s strategy can impact how much they profit. Or how little.

We don’t know how big a crash might be, and we don’t pretend to know the timing, but let’s look at the best ways for gold and silver investors to prepare for this likelihood.

The best place to start is by asking this question…

Should Gold & Silver Investors Fear a Stock Market Crash?

While no two sell-offs are identical, the best clue we have about how gold and silver might perform in the next crash is how they’ve performed in past crashes.

Here are the S&P 500’s nine biggest crashes since the mid-1970s, and how gold and silver performed during each. The green boxes mean they rose, yellow means they fell but less than stocks, and red signifies they fell more than stocks.

Gold & Silver During Stock Market Crashes

On average, gold has risen during stock market crashes. Twice it fell but less than stocks, and only once did it fall more than stocks, though I’ll point out this was immediately after gold’s biggest bubble in history.

Gold even climbed in the biggest stock crash of all: the 56% decline that lasted two full years in the early 2000s. And during the sharp decline last March, where stocks fell by a third, gold declined less than 5%.

The historical record suggests that one can’t assume gold will fall in a stock market crash—the exact opposite has occurred much more often.

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