Hedge funds sell gold and silver during big stock sell offs to raise cash to cover their leveraged investments or face a margin call. After s while the stocks and metals decouple and metals can rise quickly.
There is a huge disconnect between the paper market for metals and the physical market right now. We saw the same thing in 08 and 09. Spot was low but premiums on physical were high. They are much higher now and typically when the listed price and the street price are that far apart there's some major manipulation going on somewhere.
I won't be surprised to learn later that the Chinese were shorting the paper while buying up all the physical they can. I've never seen the physical market as crazy as it is now. Many items are out of stock everywhere.
If I could get the premiums I'm seeing listed I'd sell some of mine. Mercury dimes are well over $2 each at many places.
Bb
