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<p>[QUOTE=&quot;desertgem, post: 1108062, member: 15199&quot;]Happy, this would not be my expectations due to the strong ties now between the stock markets and pm. Very few investors are completely unlevered in either ones. Yes there are a few individuals who actually have their stock certificates delivered, but the majority are in brokerage accounts and many have marginable accounts. With the huge amounts of silver for example that are backing market shares of say SLV, traders still can leverage it to a much larger amount and that works( as long as the price doesn&#039;t drop traumatically). But if it does, and they can&#039;t provide the difference in cash needed for the margin % ( margin calls), then their position would be sold to protect the broker.</p><p><br /></p><p>So, if the &quot;fire&quot; started, and stocks started down, those that leveraged for example BAC would have to come up with cash difference. If they had no cash, they would have to either lose it or sell something else. Same with SLV stock and GLD stock, same cause, same story. And electronic trading wouldn&#039;t give them much time to decide what to do. Computer programs jump in and begin to sell. They are trying to get out first. PM has had such a high percentage gain, they would be high on many lists to dump to keep some of that paper profit as real. Most investors don&#039;t think, wow I had better buy PM stocks ( try and buy physical metals or sell them with prices dumping). Individuals think, wow, if the &quot;fire&quot; starts, I will buy all PM. But once they see their 401K, roths, stock based retirement plans collapsing, they will have liquidity problems with mortgages, food, unemployment, etc. Sounds grim, and a lot depends on the speed and depth, but if the stock markets fail severely, I expect PMs will also. This recent rise in PM has mainly taken place with a rising stock market</p><p><br /></p><p>Comparison with long term charts on the relationship of stock market and PM, don&#039;t take into account the differences that have occurred in trading, ETFs, Future contracts, and leverage in the recent years.&nbsp; JMHO, and rambling.&nbsp; <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" /></p><p><br /></p><p>Jim[/QUOTE]</p><p><br /></p>

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