In other words, gold’s biggest bull market in modern history occurred while the stock market was essentially flat. That’s because the catalysts for higher gold weren’t solely related to the stock market—they were more about everything else going on at the time. We have to allow for the possibility that this happens again: citizens are drawn to gold due to other pressing concerns besides the performance of the S&P.
I’m not suggesting there won’t be a stock market crash. Odds are better than 50/50 that’s what we’ll get. But if we do, history shows that gold may not crash with it. Or it might fall only temporarily. Or we might not get a crash at all.
For these reasons, I think it is wise to own a good chunk of gold now.
Anything can happen when markets are hit with extraordinary volatility. But consider all the risks we face today… do you really want to be without gold right now? I don’t.
Perhaps the ideal solution is to have a stash of cash ready to deploy if we get another big decline in precious metals—but also have a stash of bullion already set aside in case the next crisis sends gold off to the races.