Equities markets have painted red all around the world these last couple of days and again it was the tech ‘growth’ shares that faired the worst. The NASDAQ is now down more than 10% putting it into a technical correction for the first time since the COVID plunge in March 2020. Growing fears around central banks removing support are spreading. So why have gold and in particular silver surged? Simplistically investors have been dismissing the seemingly nonsensical valuations of these hand full of tech growth shares (that also completely dominate indexes) on the basis that “fundamentals don’t matter”. The story goes that fundamentals don’t matter because all the new money being injected into the system had to be put somewhere right? So it makes sense then that when said free money is being withdrawn or more expensive to get, that people start to think about fundamentals again…
