I shared in an earlier post that I was concerned how the “Silver stocks” would perform, should the stock market fall hard, even if Silver moves higher. Below is a snapshot of 2008. Even though the Gold ETF (GLD) held up pretty well, Gold stocks ETF (GDX) and Silver Wheaton (SLW) found times a little challenging, while the 500 index was losing 40% of its value!
CLICK ON CHART TO ENLARGE
Will the stock market fall going forward? Who knows! I am not making the case it will, I just want people to understand that if the stock market does head into an extended decline, the metals stocks can fall just as much, if not more than the broad market!