Osulin, there have been many times when bonds fell (&rates rose) at the same time as stocks. 1973, 1979 etc. When there is a scramble for cash, everything can fall in value. There is no incentive to park money in bonds with rates near zero. Cash is preferred. Commerzbank says it might hoard cash rather than buy zero rate bonds.
Good luck all. Correction in GDX might be coming.
Gold stocks are way ahead of the metal. Gold could rally and the stocks could fall.
If bonds sell off in Europe, it would probably spread to USTs, even with a slight positive yield spread. Especially if the dollar continues to sell off. 1.6% yield doesn't give much of a cushion if the dollars sells off like Soros predicts.
GDX tend to lead gold, at first. Now gold needs to lead for a while. If GDX corrects down t0 $19-19.75 area, might get back in. If gold can't rally significantly, GDX could fall more than my $19 worst case. Be careful here. Still a long term bull on the metal but now cautious on the stocks.
Took mine in GDX. Think we see a pullback in gold stocks, even if gold continues up. Gold stocks led on the upside (they always move fastest first), now may lead if there is a correction. Good luck all.
NUGT can move 20% or more in a day. Painful if you are on the wrong side of a correction.
Gold stocks vulnerable to a correction.
No it isn't. Gold crashed after the crash of 1987 for example. Gold stocks were cut in half or more.
I own physical gold & silver, and am holding through the turbulance, but have sold out of my gold stocks on the recent rally.
Calls it a "supernova" event.
Sentiment: Strong Sell