Gold & Oil Crash 2008, Lessons for Today's Market

0:00Here is the gold price back in 2008. Now if you can believe this it was at 1000 and it was right after that JP Morgan Bear Stearns deal. Silver fell like a rock after that one happened. Found that a little bit more about what went on behind the scenes from Bart Shilton about a decade later yet. Either case here you can see gold starts falling right in March and by October it's gone from a thousand to seven hundred and when we look at the oil chart you see oil was just starting to rise back in I mean little earlier before March back here in January but as the oil price went up that is when gold and silver came down so any thoughts on that what we saw back then and what you would think there's a chance we could see some more of in the days or weeks ahead. Yeah it's a very interesting analog to what's going on today obviously the the causes were different back in 2008 there was no war it was constraining supply it was more of a

1:02demand driven price spike I think overall in terms of the oil market but you made a good point that gold and silver kind of led the market and then you had oil almost lagged right it kept going up for a few more months and then boom down and then you saw in the other side of the chart you didn't talk about it but it went down pretty harshly once the demand dried up and we got into the credit crisis and again certainly something like that would seem to be likely to happen again as you can see it went from one almost 150 I think 147 was the high or something and then wow looking at you 147 27 what we got on investing and then very nice done and then all the way down to like 30 something at the bottom there so yeah so we could have something like that again and if you then look at how gold and silver reacted you know they they did bounce back very fast once you had that correction that you mentioned earlier from a thousand to 700 for gold so 30%

2:04right then it went back up again pretty quickly so yeah and at that same time silver went from 21 to 9 although oddly what what have oh yes there are physical shortages back then