As The Markets Sell Off The Precious Metals Rebound

To the surprise of many investors, the precious metals have rallied while the broader markets continue to sell off. Currently, both gold and silver are solidly in the green while the major indexes were all the red following a huge sell-off yesterday. The Dow Jones Index has lost nearly 1,000 points in the past two days while the gold price is up nearly $25.

However, even though we could see a late-day rally in the markets, and even higher stock indexes over the next few months, the bear market for stocks is still coming.The Dow Jones Index has now suffered two large sell-offs in the past ten months:

In January, the Dow Jones Index fell by more 3,000 points, and the current correction is only one-half of that amount. I expect to see a continued correction over the next month. Because October is the worst month for market Crashes, this could be one hell of a blow for not only the economy but also, for investor confidence.

For example, according to the Zerohedge article, Used-Car Prices Plunge Most In 15 Years:

And then, of course, the continued disintegration of the U.S. Retail Market, Sears Creditors Push For Bankruptcy Liquidation As Vendors No Longer Paid:

Interestingly, Sears’ major lending institutions (Bank of America, Wells Fargo and Citi) are pushing for a complete bankruptcy liquidation rather than a reorganization. I gather they believe the “brick and mortar” retail industry is likely heading for the dustbin as the Amazons of the world take over. I can assure you that the “Amazon Economy” won’t last for much longer especially when the U.S. economy and shale oil industry collapse.

Don’t Expect The Precious Metals To Sell Off With The Markets

As I mentioned in several articles and videos, the precious metals will likely RALLY during the major market correction. And we are seeing evidence of that today.Gold is up over $20 and Silver, $0.23:

When I did this chart, the Dow Jones Index was only down 100 points but is now down more than 200. So, why aren’t the precious metals selling off with the broader markets as they did in 2008? The reason for the rally in gold and silver is because the precious metals have continued to trend lower over the past six years while the broader markets climbed higher. Thus, they have already “sold off.”