I warned a friend about being fully invested in the market on Wednesday and he lost a notable amount by Friday PM. Margin calls have surely been issued and will require those who operate in that arena to come up with cash. An obvious source of cash are other securities in their portfolio. If sold, this could lead to a further drop come Monday. Even Grandma’s jewels are a source of cash when the “margin man” comes calling.
It would not be surprising to see some temporary recovery during this week in hope of calming the market down. However fear is a greater force than greed and we will see how much it grips the market in the upcoming days ahead.
Since gold and silver have no attached liabilities, they will become the safe haven for many who are finally ready to cash out of the market. The gold & silver stocks may also temporarily drop as margin accounts liquidate anything of value. Afterward, they may finally have their day in the sun. Only FATHER knows for sure.