Page 1 of 1

Stocks & metals rising????????

PostPosted: Tue Jan 29, 2013 4:26 pm
by kwebb70
I thought stocks and metals should work opposite of each other, but the markets are near record highs and metals are rising.

Re: Stocks & metals rising????????

PostPosted: Tue Jan 29, 2013 4:58 pm
by barrytrot
Everything goes up over time :)

Re: Stocks & metals rising????????

PostPosted: Tue Jan 29, 2013 5:26 pm
by ScottyTX
wouldn't that be the case if your dollars were slowly turning into poo....

Re: Stocks & metals rising????????

PostPosted: Tue Jan 29, 2013 5:51 pm
by 68Camaro
The paper metals markets are a weird set of markets, as you will note from many comments on the board here (so I don't repeat those ad nauseum). Just be careful what you write into any changes there.

For small changes when no one is messing with it, the PM market can actually sometimes flow as it should.

Right now both PMs and stocks are moving up slightly largely due to the dollar dropping. When the dollar loses value then dollar valued things cost more. But don't count on that being a perfect correlation, or one that is always there.

Re: Stocks & metals rising????????

PostPosted: Tue Jan 29, 2013 6:46 pm
by NJstacker22
for now......

Re: Stocks & metals rising????????

PostPosted: Thu Jan 31, 2013 4:43 pm
by Mossy
Normal for inflation.

Re: Stocks & metals rising????????

PostPosted: Thu Jan 31, 2013 5:18 pm
by IdahoCopper
Just prior to hyperinflation, stocks tend to rise to new heights. This is because the banks are awash with cash, and their lending guidelines are too strict. So after awhile they look at that huge pile of cash, because it is not performing, and invest in equities.

Equities are not an ideal place to stash cash to avoid inflation erosion, because some of the companies are bound to fail. However, if you're savvy and expect high inflation, it is better to buy equities than to keep the cash. Some companies will survive, and so will some of your Bank's assets.

That buying pressure pushes the market to new heights.

"May you live in interesting times."
"In Chaos there is Opportunity"