Investors who buy precious metals bullion as part of a balanced portfolio often view metals has the ultimate safe-haven, insurance against inflation and poor performance of traditional holdings, such as stocks and bonds. As a result, predicting future trends in the stock and bond markets is also a great way to predict the future of gold and silver prices, as precious metals tend to greatly increase in value during economic downturns.
Of course, predicting the future of investment markets is notoriously difficult, but occasionally some useful historical precedents are worth noting. Take a look at the chart below, courtesy of the McClellan Market Report:
The parallels are unmistakable. Such a correlation could be mere coincidence, but many investors and buyers of gold and silver think otherwise, and are taking advantage of the current low precious metals prices to purchase silver and gold in large amounts. Even for investors who feel the parallel in market performance is only a parallel, and not a harbinger of a future stock market crash, the low prices still make now a great time to buy precious metals and enhance your portfolio.