When the stock market crashes what happens to the metals?

[Argentsum]

Something I've noticed over and over. When the stock market takes a tumble the metals go down in price.

I'd assume its because positions are being liquidated to raise cash because...covering shorts?
Anyhow, I think the markets are overdue (to put if mildly) for a correction of some sort.
It's one of the reasons I've got liquidity ready for deployment.

I keep hearing news reports and it sounds like the distant thunder of calamity.
14,000 Amazon employees laid off (with more to follow). 48,000 UPS employees laid off. Bad that its
happening, but it's also happening right before the busy holiday season?

Perhaps the season won't be as busy as I thought.

 

[Casey Jones]

Covering shorts; and also, the Wealth Effect.

Few see gold/silver as "investments." The Talking Point is, they pay nothing. Ignoring, of course, the ridiculous P/E ratio of most stocks today. But, to the moneyed class...the market goes up, hey, I'm richer. I can afford to diversify. Gold is the new trendy sparkly thing...let's BUY some!

Then, when the market adjusts, yes, some gold is sold to cover shorts. A lot moar (new) stackers feel they're suddenly poorer in Unrealized Gains (nominal losses) and the first to go, is the investment they don't believe in. Gold. Remember, the market only goes up.

 

[nickndfl]

People sell everything to generate liquidity so they do not lose their homes.