ETF "Paper" Gold and Silver vs Physical Gold and Silver
Paper gold/silver is a financial way to buy and sell gold/silver on the market without ever owning any, it's called an ETF or Exchange Traded Fund and there are several. These ETF's allow gold/silver to be traded as if it's a stock instead of a physical asset. As you know, stocks are paper, there is no physical asset connected with a stock, it's supposed paper ownership in a company. Gold can't have paper ownership, it's a physical thing, one has it, one holds it to own it, but the ETF was created as so brokers could trade it as a paper stock and make money. There is more ETF paper gold/silver money than there is physical gold/silver in the world.
We have seen stock values plummet day after day, which occurs when someone sells a paper stock and someone else buys it at ever falling prices. Since stock is not a physical thing, it's trading can be done in a second completely online, in the cyber world, as there is nothing to change hands, even the stock certificates don't change hands, the brokers supposedly hold them. Gold/silver, in the paper ETF form is also traded online and since the paper ETF isn't a physical asset, the trade can occur in a second too. So, we have two gold/silver markets. We have the paper ETF market, which is not connected to actual gold and silver, and we have the physical gold/silver market, in which someone buys it and keeps it. Physical gold can't go completely away like paper ETF gold/silver can, as physical gold/silver actually exists.
2008 vs 2020 Market Crash
In 2008 the world had a banking "Mortgage Backed Security" crash, which caused the stock market crash as well and also brought down "paper gold/silver" however, the physical gold/silver pretty much stayed out of it. There was a run on gold/sivler coins at the US Mint, which makes millions of them every year and it ran out, so it was hard to find any physical gold/silver to buy and the price was way above the ETF paper gold/silver price. This is what's also occurring today in 2020, gold and silver brokers are not selling real gold and silver at the paper EFT gold/silver spot prices. I checked with a few gold/silver brokers today, one is out but is buying at the low EFT paper prices, one is not selling his gold and silver at all, but is buying below the ETF spot prices, another is selling 1oz Silver Eagles for $19, and the current spot price is $12.75. As you can see, the physical gold/silver market is not attached to the paper ETF gold/silver market. Brokers will buy at or even below these very low paper ETF prices, but they won't sell for anything close to them.
I expect the current ETF paper gold/silver spot price to decline as long as the stock market does and thus margin calls continue and quick money has to be raised to fund market calls. We can expect the physical gold/silver market to be dis-attached from the paper ETF gold/silver market. When this occurred in 2008, paper gold went from it's all time high of $1000 and dropped 30% to $700 and within a year was back at it's $1000 all time high, then in the next 2 years to a new all time high of $1950, it doubled from it's all time high in 3 years. This is what I am expecting for gold and silver this time. However, I don't expect the stock market to comeback to it's all time high of 29,000. This time, 2020, huge companies must continue on with new loans from the federal government, these loans have to be paid back, when the COVID-19 crisis is over, many companies will arise from this with much more debt, so even if they continue on, they are not in the financial condition they were before hand, so their bottom lines will be hurt which keeps the stock price from returning where it was.
In any event, the paper markets of stocks and gold/silver will run their course, physical gold/silver will remain detached from paper gold/silver and I think it will be like 2008 again for gold/silver. Many stock advisers were waiting for the shoe to fall for stocks, thinking it would come down and that would present a good buying oppertunity expecting the market to come back up again soon, as it's done before, I was thinking this too, but I wasn't thinking of a 2008 crisis.
Physical gold vs physical silver
In 2008 gold dropped 30% from it's all time high of $1000 to $700 and then set a new all time high 3 years later of $1950, up 2.75 x increase from it's $700 low. Silver in 2008 dropped 50% from it's all time high of $20 to $10 and in three years set a new all time high of $50, a 5x increase from it's $10 low. Both gold and silver produced great returns in just 3 years. 2020 is looking like 2008 again, in my opinion it's not time to sell your gold/silver, but a time to hold or buy more if you can find it at the spot price or so.
Use this link for the 20 year silver price