In 2008 when Bear Stearns was Bailed out by the US government, the world knew we were in a big recession. Despite this gold/silver prices made a huge drop in the following months. This drop in prices goes against what People would expect gold/silver to behave during a financial crisis.
Acording to this article the reason goldprices fell in the start af the 2007/2008 recession, is that the banks had spend all their money, then they borrowed gold and dumped it in the marked to make money to keep the banks from going bankrupt.
When the banks dumped all the borrowd gold in the marked, prices fell because supply exeeded demand.
After the 2007 recession the laws have changed, demanding that banks should have more funds to keep them above water if a new recession sets in.
Therefore some say that when the next recession sets in, we will not se a drop in gold/silver prices, like we did in 2007/8 because the banks Are better financially ready to meet a new financial crisis.
https://www.goldrepublic.com/news/why-gold-prices-fell-in-2008
Acording to this article the reason goldprices fell in the start af the 2007/2008 recession, is that the banks had spend all their money, then they borrowed gold and dumped it in the marked to make money to keep the banks from going bankrupt.
When the banks dumped all the borrowd gold in the marked, prices fell because supply exeeded demand.
After the 2007 recession the laws have changed, demanding that banks should have more funds to keep them above water if a new recession sets in.
Therefore some say that when the next recession sets in, we will not se a drop in gold/silver prices, like we did in 2007/8 because the banks Are better financially ready to meet a new financial crisis.
https://www.goldrepublic.com/news/why-gold-prices-fell-in-2008
