This article was first published on Orbex Forex Trading Blog.
- -
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
- -

Credit Crunch

The short answer: Yes. Definitely. We are already in one now.

The question really is what’s going to happen, why this one is different, and how best to prepare for the future.

How do we know there is a credit crunch?

Well, aside from the stock markets collapsing, the thing to notice is the price of gold. Everyone says you should invest in precious metals to be prepared in times of crisis, because they don’t lose value.

Well, the price of gold has been falling for a couple of days, erasing all the gains it had during the year, and even during the spike over coronavirus fears.

Now, obviously gold isn’t going to become worthless, and an argument can be made for it going back up again. But this drive down in both equities and “safe” assets like gold shows that there is a desperate need for cash.

Everyone is selling everything to cover losses, and to retain what value they have. To make matters worse, amateur financial investors are withdrawing their funds out ...

To keep reading this article, please navigate to: Orbex Forex Trading Blog.