Can gold and silver protect you from a stock market crash? // Investing hoard physical commodities
Can gold and silver protect you from a stock market crash? // Investing hoard physical commodities, gold and silver investing, gold investing 2019, silver investing 2019, gold hedge, gold hedging explained, silver hedge, silver shortage 2019, investing in gold and silver, investing in gold, investing in silver, investing in gold bars, investing in gold coins, investing in silver bars, investing in silver coins, gold market crash, silver market crash, gold stock market, silver stock market, hoarding gold, hoarding silver, hoarding gold and silver david moadel welcome to looking at the markets with David Modell I wanted to look at whether holding on to gold or silver is a good way to protect yourself against a stock market crash so let's look at a website called macro trends net wanted to give them credit and we're going to look at how gold and silver first we're going to look at gold and how it performed during several economic recessions which would also be market crash in stock market crashes so the gray part here is a recession and as we can see this is the early 1990s recession and this is the gold price and it pretty much ended where it started during that recession so it held steady it went up but then frustratingly came came back down but at least it didn't lose money so it performed pretty well there let's take a look at the next recession after that which would be the early 2000s and as we can see gold went up during that it went up during the recession of the early 2000s so that's pretty good i would say was it was a pretty good hedge pretty good protection against that market crash there how about the most recent recession in the during the late 2000s well here the picture is not as clear it's pretty choppy here up down up and it did go up it ended somewhat higher than it started but it was probably not so easy to just ride out this ride out this downturn here this pullback I mean we know historically in hind sight that it came right back up but people didn't know it at the time it probably felt like it was going to keep going down all right so let's take a look also at silver prices and this is macro trends dotnet here we go silver prices hundred year historical chart we're going to let that load up and we're going to look at the same three market crashes or recessions and we'll see how silver did during that time we're going to make it not inflation adjusted and we're going to start again with the recession from we'll start with the early 1990s and we'll study that period let's see how it did there we go ah well let's look at silver during that early 1990s recession we can see silver prices going down sharply not such a great hedge not great protection against a market crash there or recession let's look at the dot-com dot-com bust of the early 2000s let's see how it performed then and we can already see that it that it's it was quite choppy look at that up down up down not so easy to ride that out it looks like it may have actually ended lower than it started a little bit somewhat but not not so steady it might not have been very easy emotionally to write out via this this up and down the chops here perhaps not such a perfect edge right there against a stock market crash and then finally we're going to look at the Great Recession the late 2000s here and a not this is silver and not such a perfect market hedge although it did land it did and just about where it started so if you had held on but it's not so easy to hold on to such a precipitous drop from in almost twenty dollars an ounce to less than half of that about nine dollars per ounce it's easy in hindsight to say oh well I would have just held on and it would have been fine but when it's falling so sharply so fast that's not such a great market hedge it's it's not so simple just to ride that out a lot of people would panic or lose patience and sell for a pretty sizable loss there so looking it over it looks like gold at least for the past three recessions gold seems to have been a better hedge or protection against a market crash than silver perhaps and I'm not telling you what to buy or what to do what not to do but gold does seem a little better at least historically for the past three recessions but neither one was a perfect market hedge they were both choppy they both had their ups and downs it's not so easy to write out those downs especially when it takes months or years to work itself out and especially when it goes down a lot so if you're going gold or silver with the only purpose being to write out a potential stock market crash or recession it's not a perfect catch you may want to consider other hedging hedging mechanisms hedging strategies such as holding cash or using put options or using small position sizes with your trades things like that there are things you can do besides stacking a lot of you know holding on to a lot of gold or silver there's nothing wrong with that but don't expect it to be a perfect market hedge there may be better the way better ways that you may want to consider alright so if this was helpful to you then please give this YouTube video a thumbs up and comments I like to read your comments and please subscribe to my youtube channel so you can receive the latest updates on my financial educational videos and if you'd like some help if you have questions or you'd like some help putting together a trading or investing plan you can contact me at any time my email thank you so much for watching and listening I really appreciate it and I'll talk to you again soon you
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