Gold and silver sell-off may not last long; 4 signs for a turning point.

No one can accurately predict when gold and silver will bottom out, but there are several signs or foresight that the market turnaround may not be far ahead:

Sign 1: The central bank has run out of methods

Central banks around the world are trying their best to stimulate the economy, cut interest rates sharply, and start various forms of quantitative easing. If these don't work, they will take other measures, but these measures will undoubtedly boost inflation and eventually lead to increased attractiveness of gold and silver.

Sign 2: Weakened confidence in the Federal Reserve

The mainstream is beginning to wonder whether Fed can help the market survive this turmoil? Some even point out that there might be a calling for a new financial system.

Sign 3: Demand for gold and silver surges

Both gold and silver have industrial usage as well as a wide range of jewelry uses. But demand the biggest impact on its price is.

In the past two weeks, there are many signs that investment demand for gold and silver has surged:

1. As of March 13, the total number of gold-backed ETF positions has exceeded half of the total in 2019;

2. Almost every bullion broker reports a record level of demand;

3. The Silver Eagle of the US Mint is sold out, and their press release states: Our sales in early March exceeded 300% of the previous month;

4. The Royal Mint said last week that its weekly sales of precious metals have tripled from the same period a year ago.

5. The gold trading volume tracked by the London Bullion Market Association reached nearly $100 billion on Monday, March 9th, the highest daily trading volume ever.

It also means that once the forced sell-off ends, this record level of demand may push up prices.

Sign 4: The law of history

In 2008, gold and silver also plummeted along with the stock market, for the same main reasons as today. Gold fell 30% from its high of the year, while silver fell 73%.

But both metals bottomed out in October, and as of 2011, gold rose 166% and silver surged 440%. Gold and silver rebounded before the stock market bottomed.

In other words, the selling of gold and silver is temporary. Once liquidity needs are met, investors repurchase gold and silver and help it achieve its biggest rebound in history.

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