The prospect of aggressive action by the Fed, tensions over Ukraine, and slowing corporate earnings stroke a heavy blow to stock markets in January. Here’s what you need to know about this market turmoil. 

Will the Stock Market Crash in 2022?

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After gaining during the second year of the pandemic, the stock market was turbulent in recent weeks. 

The S&P 500 tumbled in January, nearing a correction, meaning a drop of 10%. And then it bounced back, but some analysts say the turmoil might continue well into 2022.

What is behind this market roller-coaster and how can it affect the gold price? 

In January 2022, the U.S. stock market has suffered its 

worst first month of the year since the global financial crisis in 2009

The S&P 500 index fell 5.3%, which was its 

 since the start of the coronavirus pandemic in March 2020.

US stocks post the worst January since 2009 financial crisis amid fears over rising interest rates, geopolitical tensions, and slowing corporate earnings.

The Federal Reserve’s plans to raise interest rates

Let’s look at each one of them in detail. 

, which has recently hit its highest level in four decades.

cartoon people standing on a giant percentage sign representing an increase in interest rates planned by the U.S. Federal Reserve in 2022.

But it seems that the idea of higher rates have spooked stock investors, and the 

Higher rates could risk causing a slowdown of the U.S. economy.

They could also make other investments like bonds become more attractive relative to stocks.

The thing is, when the Fed raises its benchmark interest rate, banks and lenders tend to increase borrowing costs, too. Credit cards, mortgages, and other debt become more expensive, reducing consumer spending and demand. Therefore, 

this hurts the outlook for company profits

 and reduces investor enthusiasm for buying their stock.

 could be underway. According to the latest survey of retail managers, activity in America’s service industries has fallen to an 18-month low. And the situation in Europe is not much better: retail sales in the Eurozone slumped 3% in December from the previous month. 

squeeze company profits that have already been hit by the rising costs we mentioned above

Goldman Sachs CEO David M. Solomon at a press conference talking about wage inflation and slowing corporate profits at Wall Street’s main bank.

As an example, Goldman Sachs' Chief Executive Officer has recently warned of 

just as the Wall Street bank reported a blowout year for profits, jangling the nerves of investors.”

Geopolitical risks are very difficult to price into stock markets, but several analysts said mounting tensions over the 

hurt technology stocks and the broader market

The Russian and Ukrainian flags with cracks symbolizing rising tensions between the two countries

And if the crisis continues, and the West slaps stinging economic sanctions on Russia, global 

 at a time when economies are already struggling with inflation.

“What I do know is if those tanks cross the border, oil will go above $100 a barrel. We’ll certainly feel it on the European gas market. We’ll feel it on the wheat market. We’ll feel it across a variety of markets,”

 RBC head of global commodities strategy Helima Croft said.

In short, if Russia were to move its troops across the Ukrainian border, it could 

, sending stocks lower and commodity prices even higher.

*In risk-off situations, investors become more risk-averse and sell their risky assets, therefore sending their prices lower.

What do experts say about the stock market?

In general, it’s a rule of thumb on Wall Street that

 January sets the tone for the whole year

. By this measure, the forecast for stock markets in 2022 looks quite gloomy.

a bull and a bear as the long-standing symbols of optimism and pessimism about the outlook for the stock market.

Morgan Stanley’s Michael Wilson told investors to 

 and warning the S&P could plunge another 10%.

Once inflation slows down after the interest rate hike, Wilson said he was 

“most bearish” on consumer goods, and apparel and housing-related stocks

But not everyone feels pessimistic about the stock market’s short-term performance. According to Frank Panayotou, a managing director at UBS Private Wealth Management, the drop in stock prices this year 

“seems overdone and represents a buying opportunity for long-term investors.”

investors need to be prepared for more volatility and overall more muted equity market returns than we have been accustomed to in recent years.”

volatility in equities and geopolitical tensions usually provide support for save-have assets

, such as physical gold and precious metals. 

How this turmoil in the stock market could affect gold? 

gold tends to be resilient during stock market crashes

 because the two are negatively correlated. In other words, when one goes up, the other tends to go down.

historic gold price performance during stock market crashes

There are some reasonable conclusions we can draw based on this historical data. As we can see, in most cases, 

the price of gold increased during the biggest stock market crashes

And how has the gold price reacted to the current stock market turmoil? 

Here’s what Nicky Shiels, Head of Metals Strategy at MKS PAMP GROUP, says: 

“The traditional thinking would assert that escalating geopolitical risks together with equity market volatility is a bullish Gold combination to allow for a technical breakup/out.” 

In other words, rising geopolitical tensions and stock market volatility are considered to be traditionally supportive for gold and are therefore generally expected to drive the price of the precious metal up. 

 an ounce if inflation remained elevated. 

 "For investors looking for a way to hedge their portfolios from risks of a growth-slowdown and falling valuations, we believe a long gold position would be more effective in the current macro environment.” 

Yes, you read it right, that’s Goldman Sachs basically saying it could be smart to buy gold now.😉

To quote the great baseball-playing philosopher Yogi Berra, 

"It's tough to make predictions, especially about the future."

This is especially true when it comes to financial markets.

Even if you had a crystal ball or the magical ability to read news headlines in advance, it would still be difficult to predict what is going to happen.

Investors are bracing for a year of rising interest rates as the Fed attempts to tame inflation. But if inflation continues to rise or if the Fed is forced to aggressively raise interest rates to keep it under control, it 

unexpected geopolitical events are always a risk for investors

. Any escalation of conflict between Russia and Ukraine would most likely result in unprecedented U.S. sanctions on Russia, which would also strike a blow to global financial markets.

While no one knows for sure, all these factors could potentially trigger a stock market crash in the future. Have you already diversified your portfolio with 

Gold offers several powerful advantages as a store of value. Discover why more and more investors are turning to this precious metal.

What are the advantages of gold compared to other investments?

A look at the strong changes in demand in the gold sector y-o-y.

A Shift in Gold Demand Trends

Good thing central banks can't print gold. 😉

21.9% Annual Inflation... and Counting

Despite slowing down, the frenzy around silver has kept prices up, and demand for physical bars and coins strong, while doubts over the state of the silver stocks emerge. Is Silver Setting the Stage for a Breakout?

Is Silver Setting the Stage for a Breakout?

We are thrilled to announce that our CEO Alessandro Soldati was invited for an open and lively discussion on a popular YouTube channel Frugalisme et Liberte Financiere.

How to Buy Physical Gold Online in 2022?

17/02/22: The European Central Bank could raise interest rates in 2022, the gold price goes up as tensions over Ukraine resurface, Switzerland lifts most Covid-19 restrictions. And more.

Weekly Digest: ECB Rate Hikes, Gold Up on Ukraine Tensions

Choosing between gold and silver: A comparison to help you decide which metal might be right for you.

Should You Buy Gold or Silver?

Reddit and the Wall Street Silver crowd are planning a new #Silversqueeze. With more coordination and hindsight, will they succeed in rising the silver price? 

#Silversqueeze 2.0?                         

The Federal Reserve’s inflation goals are getting risky and could cause the rate to overheat dangerously if they were to push it too hard.

The Fed’s Dangerous Game

Meet GOLD AVENUE CEO, Alessandro Soldati, in our first Q&A video session!

Q&A with our CEO - Alessandro Soldati

The Fed desperately wants higher inflation that would exceed its 2% target. Will the ECB follow the lead? It looks like it. 

Does the European Central Bank Want High Inflation?

24/02/22: Russia has launched a full-scale invasion of Ukraine, the S&P is in a correction for the first time since the 2020 Wall Street plunge, gold hits a 20-month high. And more. 

Weekly digest: Ukraine Crisis, Markets Shaken, Gold’s Up

Russia’s decision to remove the US dollar assets from its sovereign wealth fund and partially replace them by gold boosts the yellow metal’s importance as a strategic asset.

Russia's New Move on Gold

After yet another central bank starts considering negative interest rates, we’re taking a look at how unlimited debt can impact physical gold investment.

Is Unlimited Debt Good for Gold?

World markets have taken a hit as the Russian invasion of Ukraine spooked investors around the globe. Here’s what you can do right now to protect your investment portfolio and gold savings.

Ukraine-Russia Conflict: What Impact on Your Savings?

You probably noticed certain industries and communities aren’t bouncing back as quickly as others during times of recession or economic crisis. That’s what the K-shaped recovery is all about.

What the K-Shaped Recovery Means for Gold

03/03/22: Markets are on a wild rollercoaster ride, Eurozone inflation at a record high, Russia intensifies its invasion of Ukraine, gold proves itself as a safe haven. And more.

Weekly digest: inflation rising, Russia sanctions, gold gains

You want to start investing but you don't know where to start? Here is a beginner’s guide to investing.

How to Start Investing in 2023? Here's What You Need to Know

The #silversqueeze movement took the investment world by storm and has the potential of shaking up the silver market. Will it be here for the long term?

#silversqueeze

Here’s a rare sneak peek into one of the world’s biggest gold refineries. 

How Do You Make Gold Bars?

10/03/22: Gold and palladium hit a record high, oil records its worst day since November, Biden signs an executive order on crypto. And more. 

Weekly digest: Metals on the Rise, Oil Drops, Crypto Order

In 2021, central banks continued buying gold, with emerging countries stepping up as key net buyers. Do you wonder why? Here’s what you need to know.

Central Bank Gold Buying Explained

With inflation soaring in Europe and the U.S, learn how to navigate higher consumer prices from this great personal finance video from Sorelle Amore.

5 Ways to Protect Your Wealth From Inflation

17/03/22: The Fed has raised interest rates for the 1st time since 2018, one of Brazil’s biggest funds goes for gold, E.U.'s rethinking gas supplies. And more.

Weekly Digest: Fed’s 1st Rate Hike, Gold in Demand

After Russia’s invasion of Ukraine, investors rushed to gold, the world’s oldest safe-haven asset, pushing its price to a new record. Why did this happen? Here’s what you need to know. 

Investor Gold Demand is Booming Right Now: Here's Why 

On August 15, 1971, U.S. President Richard Nixon possibly made the biggest monetary error in history. A video from Libre & Riche will tell you why.

All You Need to Know About the World’s Greatest Monetary Catastrophe

24/07/22: The U.K. hit by the worst cost-of-living crisis in decades, Powell finally admits inflation is “much too high”, European stocks drop. And more.

Weekly Digest: Cost of Living Crisis, Inflation Problem

The U.S. Federal Reserve has announced its first interest rate hike since 2018. What could this mean for the gold price? Here’s what you need to know. 

How Interest Rate Hikes Affect the Gold Price

31/03/22: European inflation soars to new heights, Russia resumes gold purchases, no breakthrough seen in Ukraine war despite renewed peace talks. And more. 

Weekly Digest: EU Inflation Runs Hot, Ukraine Peace Talks

It seems that the ongoing US presidential election has not changed the situation in the gold market so far as the macro backdrop remains quite favorable to the yellow metal.

Trump + Biden = Gold?

Do you want to buy gold bars but are not sure where to start? Here’s what you need to know to build your precious metals portfolio in a smart way.

How Do You Buy Physical Gold Bars? 

The backdrop of global inflation in the U.S. and Europe was already worrying. Now, Russia’s invasion of Ukraine is making the situation even worse, including sending gas prices soaring to record levels. Here’s what you need to know.

Here’s How Rising Gas Prices and Inflation Fuel Each Other

07/04/22: More and more people are worried about rising consumer prices, experts think the U.S. recession is inevitable, cryptocurrencies are facing some privacy issues. And more.

Weekly Digest: Inflation Worries, U.S. Recession

It looks like stagflation could be here soon. Here’s what you need to know to understand the economic phenomenon that stifled growth through the 1970s.

What Is Stagflation and Why Should We Worry About It?

14/4/22: U.S. inflation hit 8.5% in March, the highest since 1981, EU ban on Russian gas could spark a sharp recession in Germany, Ukraine peace talks “at a dead end.” And more.

Weekly Digest: U.S. Inflation at 40-Year High, German Recession Risk 

Leading world banks say we should get ready for a new recession shock. What does it mean exactly, and what investments might be the best place to stash your hard-earned money?

Recession Risk is Rising, Economists Say. Here's What It Means for Investors

21/04/2022: The IMF cuts its global economic growth forecast, UN says the war in Ukraine could create a global food crisis “beyond anything seen since World War II,” Macron and Le Pen fight for the presidency. And more.

Weekly Digest: IMF Cuts Growth Forecast, Hunger Threat

If you are a parent, you probably want to find the best way to set your kids up for financial success. Here’s how your gold savings will help you start building their lifelong wealth.

3 Ways Gold Savings Can Benefit Your Children and Family

Easy is always right. Especially when it comes to buying precious metals. If you still don’t know what’s the easiest way to buy gold, you’re in the right place.

The Easiest Way to Buy Gold and Precious Metals

28/4/22: Russia halts gas supplies to Poland and Bulgaria, the Fed is set for more aggressive rate hikes to tame inflation, Musk seals the deal to buy Twitter. And more.

Weekly Digest: Russia’s Gas Cutoff, Musk’s Twitter Deal

If your children are the lucky ones to get a hoard of gold as an inheritance, there are 4 things you should do before passing it on to them.

4 Things to Remember When Buying Gold for Your Children

04/05/22: The Fed is set to fight inflation with the fastest rate hikes in decades, Fitch trims China’s 2022 growth forecast amid Covid-19 lockdowns, two Argentinian banks will allow crypto trading. And more.

Weekly Digest: Fed Rate Hike, Cuts to China’s Growth Forecast 

Here are the 4 handy tips you can immediately put into practice when buying physical gold for the first time.

How Do You Buy Gold? A Beginner’s Guide

Swissmint made history as they issued their first-ever 50-franc Vreneli gold coin on May 11, 2022, making a very special coin even more popular in Switzerland and beyond.

Swissmint Issues a New Limited-Edition Vreneli Coin

12/05/22: U.S. inflation stays at a 40-year high, defying expectations of a bigger drop, crypto and stocks fall, reacting to the U.S. inflation data. And more.

Weekly Digest: U.S. Inflation, Stocks, Crypto Crash

The end of Bretton Woods seems to be an essential reason behind the widening of the productivity-pay gap that reveals gold's influence as a source of stability.

What is the Productivity–Pay Gap?

A quick overview of the performance of gold versus some of the major commodities for the first half of 2020.

🔥 Gold VS Commodities 🔥

You read in the press that persistently high inflation has finally peaked and should be going down soon. But the latest CPI numbers show it might not be entirely true. Here’s why.

Has Inflation Peaked? Here's What You Need to Know to Understand Inflation

19/05/22: U.S. stocks post the biggest daily drop in almost two years, Sri Lanka default hints at troubles ahead for developing nations, E.U. slashes growth forecast. And more.

Weekly Digest: Dow Tumbles, Food Inflation Getting Worse

Since the start of 2022, the stock market has been on a wild ride, while gold was close to hitting a new record high in March. Which has performed better so far? We guess you already know.🙃

Gold Price Vs. Stock Market: 2022 Edition

While the Fed is taking a dovish stance, investors are fearing a real rise in inflation in the near future.

Is the Fed Moving Too Slow to Counter Inflation?

25/05/2022: U.S. stocks slumped again amid economic data, the global food crisis risks causing a “messy” migration in Europe, Bitcoin could fall to $8,000. And more.

Weekly Digest: Stocks Slump, ‘Messy’ Migration Risk in Europe

Have you been thinking of investing in platinum bars and coins? Here’s what you need to know about one of the world’s rarest precious metals.

Investing in Platinum: A Beginner’s Guide

02/06/22: The Eurozone inflation hits a new record high, JPMorgan Chase CEO warns of the economic hurricane, EU leaders agree to ban most Russian crude imports. And more. 

Weekly Digest: Eurozone Inflation, Economic Hurricane

09/06/22: The OECD has lowered its growth forecast for this year, Eurozone inflation is expected to peak, U.K. economy is facing stagnation. And more.

Weekly Digest: OECD Cuts Growth Forecast, EU Inflation to Peak

Central banks are rushing to raise interest rates to tackle rising consumer prices in Europe. There are a few things we can learn from them about fighting inflation.

How to Fight Inflation? The Central Bank Edition 

Thanks to GOLD AVENUE, Tibo InShape was able to enter the famous gold refinery MKS PAMP. Watch the video and follow Tibo in his discovery of gold!

Tibo InShape & GOLD AVENUE: visit of a gold refinery in Switzerland!

16/06/22: Fed announced a historic rate hike, a U.S. recession is looming, bitcoin is plunging, U.K. economy is shrinking, China’s contact with aliens. And more. 

Weekly Digest: Big Fed Hike, Recession Fears, Gold Could Soar

GOLD AVENUE’s CEO Alessandro Soldati was selected by Bilan magazine as one of French-speaking Switzerland's most promising young entrepreneurs.

Bilan Chooses GOLD AVENUE Among Switzerland’s Top Young Startups

If you are considering buying silver bars and coins, there are a few things you need to know first about one of the world’s most valuable and accessible precious metals.

Investing in Silver: A Beginner’s Guide

Country-specific guides to understand gold as an investment in 2021 from the World Gold Council.

The relevance of gold as a strategic asset: 2021

Famous precious metal skeptic buys gold as a hedge against accelerating inflation which he says is “reminiscent of the 1970s”.

Lifelong Gold Skeptic Makes Major U-Turn

23/06/22: The stock market dropped as recession fears grow, UK inflation hits a new 40-year high, Bitcoin could plunge to a low of $13,000. And more.

Weekly Digest: Stock Rally Fizzles, Recession Risk

While stocks and bitcoin went down sharply due to rising inflation and uncertain economic outlook, gold has retained its value, exactly when investors and savers needed it. 