Jump to content
  • The above Banner is a Sponsored Banner.

    Upgrade to Premium Membership to remove this Banner & All Google Ads. For full list of Premium Member benefits Click HERE.

  • Join The Silver Forum

    The Silver Forum is one of the largest and best loved silver and gold precious metals forums in the world, established since 2014. Join today for FREE! Browse the sponsor's topics (hidden to guests) for special deals and offers, check out the bargains in the members trade section and join in with our community reacting and commenting on topic posts. If you have any questions whatsoever about precious metals collecting and investing please join and start a topic and we will be here to help with our knowledge :) happy stacking/collecting. 21,000+ forum members and 1 million+ forum posts. For the latest up to date stats please see the stats in the right sidebar when browsing from desktop. Sign up for FREE to view the forum with reduced ads. 

Why gold prices fell in 2008


vw1972

Recommended Posts

In 2008 when Bear Stearns was Bailed out by the US government, the world knew we were in a big recession. Despite this gold/silver prices made a huge drop in the following months.  This drop in prices goes against what People would expect gold/silver to behave during a financial crisis.

 

Acording to this article the reason goldprices fell in the start af the 2007/2008 recession, is that the banks had spend all their money, then they borrowed gold and dumped it in the marked to make money to keep the banks from going bankrupt. 

When the banks dumped all the borrowd gold in the marked, prices fell because supply exeeded demand. 

After the 2007 recession the laws have changed, demanding that banks should have more funds to keep them above water if a new recession sets in. 

Therefore some say that when the next recession sets in, we will not se a drop in gold/silver prices, like we did in 2007/8 because the banks Are better financially ready to meet a new financial crisis.

 

https://www.goldrepublic.com/news/why-gold-prices-fell-in-2008

Link to comment
Share on other sites

2 hours ago, vw1972 said:

 

Therefore some say that when the next recession sets in, we will not se a drop in gold/silver prices, like we did in 2007/8 because the banks Are better financially ready to meet a new financial crisis.

Lol. :)🤣

Link to comment
Share on other sites

9 hours ago, vw1972 said:

Therefore some say that when the next recession sets in, we will not se a drop in gold/silver prices, like we did in 2007/8 because the banks Are better financially ready to meet a new financial crisis.

Depends in the next crisis assets bubble stock/property burst if this will cause deflation or because lack of inflation and continued QE get inflation. Topic discussed much further detail by Peter Schiff (long video 2 hours and 45 minutes) published Jul 30, 2019.

 

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...

Cookies & terms of service

We have placed cookies on your device to help make this website better. By continuing to use this site you consent to the use of cookies and to our Privacy Policy & Terms of Use