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Possible Stock Market Crash




Like during the Great Depression, the major catastrophe could occur, if key stock markets in the World collapse. And, because they are so interconnected, the effects of a single stock market crash could simply propagate to the others.

In fact, experts believe that "The Great Depression" was caused by the sudden collapse of the New York stock market on October 29th, 1929.

Most modern companies are being driven by the thirst for profits - shareholders put pressure on the companies' leaders to squeeze out more. Thus, the activity is mostly driven by the hunger for profits.

Obviously, a stock market crash would diminish the value of a company's shares, therefore affecting the company's worth.

Of course - any crisis hides opportunities. Therefore, some believe that the best time to buy shares is during a stock market/financial crisis. It's also important to pick the right shares. For example: tech shares might not prove as useful on the long term as commodity company shares.

The complexity of a possible stock market crash (which could easily propagate across continents) is too vast for experts to determine the outcome for precious metals like gold and silver. We simply cannot know for sure whether it will bring precious metals prices down or, will it rather affect currencies and propel the previous ones higher.





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