While there are some who are worried that the stock market is going to crash, one financial expert has warned that the “Hindenburg Omen” has popped up several times recently.
In the event that such warnings are accurate, it could result in a large number of market participants buying gold. Such an event could cause prices of the commodity to surge, and provide those who purchase precious metals with substantial benefit.
“There have been multiple occurrences of the Hindenburg Omen in the last several weeks,” Art Cashin, who works as the director of floor operations at UBS, wrote in his morning note, according to CNBC.
Such signs frequently happen before the stock market crashes, the media outlet reports. There are various occurrences that serve as such warnings, including the number of stocks reaching either their highest or lowest price in a year being particularly high.
The morning note written by Cashin cites the insights of SentimenTrader’s Jason Goepfert, who stated that in the most recent eight trading sessions, five of these so-called omens have appeared. This is the same number of such signals that occurred right before the stock market started plunging in November 2007.
In the event that equities take a similar turn, it could be highly beneficial for those who engage in precious metals investing.