They are a safe haven for use during emergencies and that's what people, businesses, governments have done ... held gold for an emergency. Now cash is needed or is wanted, so people sell it to raise cash to deal with margin calls or to buy beaten down stocks or to keep the economy fluid.
People don't hold gold for emergencies so they can play with it while the world goes to hell.
So if you sold it to raise cash, someone who was holding on to cash for just such an opportunity bought it from you. If you sold it because you have no idea what you're doing and scare easily, you're stupid ... but then there's no shortage of stupidity in a crisis.
Precious metals are a safe haven for those who use it as such. It's use has hardy become a common strategy in the larger markets.
In a panic:
1. You go to cash then - 2. You wait for the markets to bottom then - 3. You think about where to invest that cash
There is a short time factor involved. Markets act as money managers think the market will react. Inflation is now, sitting in cash is a guarantee of losing money. Rotation into miners with positive earnings will come. In the end these market shocks tend to stimulate rotation.
I agree but what you do is . 1) move into cash . 2) take some of that cash and go on vacation to a warm climate. 3) hook up with some 20 year old hotty. 4) then remember this is what you were investing for in the first place.
I totally agree. I'm heavily invested and may pull the plug this morning. I'm trying, however, to think in these terms... If I had no money in SLW today, would I buy at these prices? I guess I probably would. But then, I'm irrationalx.