[Cringing Negativism Network]

There’s a simple explanation for markets this week:

When all investments are dropping. Equities. Global stocks. Commodities. Precious metals.

It is not investments which are dropping. It is currencies the investments are traded in, rising.

Why?

[blam]

Here Are The Real Reasons Why Gold And Silver Plunged

[Vermont Lt]

Because there was a rush back into dollars from other currencies. This causes the price of commodities to fall—weak dollars cause them to rise, strong dollars cause them to fall. This is combined with unwinding the holdings of hedge funds which exacerbates the problem.

[BfloGuy]

It is currencies the investments are traded in, rising.

Why?

My guess is that with all investments dropping, people are returning to cash. The demand to hold money is increasing. Which, when you think about the state of the world's major currencies, is pretty sad.

[Alberta's Child]

Maybe I'm being naive here, but I imagine the decline in commodity prices as measured in U.S. dollars is directly attributable to a rise in value of the U.S. dollar as our currency becomes more attractive as a "safe haven."