Is the contagious selling of gold and goldminers we saw march 9-22 a phenomenon only occurring in the beginning of a crash or is there a chance it could occur again if we saw a rapid further correction to the march lows on stocks? P.S. looking forward to tomorrows long term video

Eoin Treacy's view

Thank you for this question and I am delighted you are enjoying the audios. The big question most people is whether we have seen the lows. The answer depends on what assets you are talking about.

After a crash, the sectors that bounce back first and fastest are generally those that lead on a recovery. So far gold and anything related to cloud computing, healthcare solutions to the coronavirus and consumer staples have regained their peaks. In the event, the bear market is prolonged these sectors will not be immune but they are unlikely to exceed their March lows.

The most important thing to remember about investing in precious metals is they are volatile. Therefore, occasional big pullbacks are to be expected. That does not mean they occur every month and I think investors have got the message that gold is a safe haven asset. The next significant pullback is unlikely to be as large as the February/March sell off.