Will gold trap you for 15 years?
The first gold crash was from June 1980 to 1982, where gold fell by 58.2% over 19 months.
The reason for the crash was the high interest rates maintained by the Federal Reserve and a decline in demand for safe-haven assets.
The second crash occurred from March to October 2008, with gold dropping by 29.5%.
This time, the global financial crisis led to a contraction in liquidity, and institutions rushed to sell assets for cash.
The third crash happened from 2012 to 2015, with gold falling by 39%.
This was due to all asset directions flooding into the housing and stock markets.
The fourth crash took place from July to December 2016, with a decline of 16.6%.
This was caused by expectations of interest rate hikes by the Federal Reserve.
The reasons for the nearly 40 years of gold crashes can be boiled down to three main points:
First, expectations of interest rate hikes by the Federal Reserve.
Second, funds seeking better investment directions with higher yields.
Third, the emergence of a reservoir, similar to what happened in the housing market back then.
Do you think this time it will trap you as well?
@TermMaxFi