by John Rubino
The game the government and the financial markets have been playing for the past few years – in which stocks tank until the Fed capitulates and agrees to cut interest rates and/or ramp up QE, after which markets soar – is usually measured in stock price terms.
In other words, the S&P 500 drops by 18% in two weeks and that is deemed scary enough to force the Fed to fire up the printing press.
But precious metals also tend to be swept along on these massive tides of hot money. In March of this year, for instance, stocks tanked, but so, counterintuitively, did supposedly “non-correlated” assets like gold and silver.