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How I Dodged the Gold & Silver Crash and What Will Happen Next

The video discusses the recent dramatic declines in silver and gold markets, highlighting a historic crash in silver that wiped out over $10 trillion in market cap. The speaker emphasizes the emotional nature of trading during such volatile periods and provides insights into risk management and trading strategies. Despite the recent downturns, there is a belief that the secular bull market in precious metals is not yet over.

Precious MetalsMarket VolatilityRisk Management

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Key Takeaways

Recent crashes in both silver and gold highlight significant market volatility, driven by emotional trading dynamics that often overshadow fundamental analyses, which suggests traders should recalibrate their strategies.

The nature of the current market conditions parallels historical events, particularly the 1980 Hunt Brothers crash and the 2011 drawdown in silver, emphasizing the risk of severe corrections amid heightened emotional responses.

As the VIX index rises, indicating increased market fear, equities are likely to follow a downward trajectory similar to precious metals, highlighting the need for enhanced risk management and timely trading decisions.

GOLD-OUTLOOK

Gold Decline — Gold dropped 14% in two days, resulting in a loss of over $5 trillion in market value.

“it was down 14% in two days for an over $5,000,000,000,000 loss.”—

Historical Returns — From 1970 to 1980, gold returned over 2000%, suggesting potential for similar gains in the current decade.

“gold returned over 2000% in a decade.”—

Potential Haircut — Gold could experience a 20% haircut during its secular bull market, which is not unusual.

“for gold and it's in its secular bull market run is actually not a bad thing.”—

HISTORICAL-COMPARISONS

Hunt Brothers Crash — The Hunt Brothers' attempt to corner the silver market in 1980 led to a 90% peak-to-trough crash.

“Number one was in 1980 when the Hunt Brothers tried the corner and silver market.”—

2011 Drawdown — In 2011, silver saw a 72% drawdown following a significant price surge, highlighting potential for similar patterns today.

“So gold is the one I watch for general direction and silver is the one I trade for increased volatility, but also better gains.”—

Emotional Trading Caution — The speaker cautions against assuming current market conditions will differ from historical emotional trading patterns.

“And the way I'm playing this is to remove myself is to extract myself from the stress, from the fear, from the emotional baggage that might risk making you do…”—

MARKET-ANALYSIS

Risk Protocols — The speaker stresses the need for enhanced risk management protocols amid rising market volatility.

“As we go higher, the risk gets greater. Increase your risk management protocol was what I was saying to everybody on YouTube, on X and on the Discord channels.”—

VIX Indicator — The rise of the VIX index signals increasing market fear, which may lead to further equity declines.

“when the VIX shoots up and the UVXY is a is a approximation of the VIX, but it uses VIX futures.”—

Wyckoff Pattern — Equities are currently exhibiting a Wyckoff distribution pattern, indicating potential for significant downturns.

“Now equities is still in this Wyckoff distribution that's been going on since September.”—

SILVER-CRASH

Historic Crash — Silver faced a historic crash, losing over $10 to $12 trillion in market cap within just two days.

“And if you include silver, at one point, it was over 10 to $12,000,000,000,000 in market cap being wiped out, which is I mean, if you think about it, that's…”—

27% Decline — The crash resulted in a 27% decline, marking the second largest single-day drawdown in silver's history.

“We had the second largest single day drawdown in history for silver ever.”—

1980 Comparison — The largest single-day drawdown for silver occurred in 1980, when it fell 33% during the Hunt Brothers' market cornering attempt.

“Number one was in 1980 when the Hunt Brothers tried the corner and silver market.”—

TRADING-STRATEGY

Strategic Exit — The speaker successfully exited their silver position just before the crash, underscoring the importance of timely decision-making.

“And I literally got out five minutes before the crash, making money all the way to the last few minutes and avoiding this entire dump.”—

Technical Insights — By leveraging technical indicators, the speaker predicted market movements and successfully avoided losses.

“So that was the second warning shot. Hey, when the VIX shoots up and the UVXY is a is a approximation of the VIX, but it uses VIX futures.”—

Avoiding Risks — The speaker advises against attempting to catch falling knives in a volatile market, highlighting the associated risks.

“So that was the second warning shot. Hey, when the VIX shoots up and the UVXY is a is a approximation of the VIX, but it uses VIX futures.”—

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Important Disclaimers

Not Investment Advice: For education only — not financial, tax or legal advice.

AI-Generated: Made by AI from source transcripts and may contain errors.

No Guarantees: Past performance does not predict future results; investing carries risk.

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