Gold-Silver Crash: Uncontrolled Sell-off in Asian Markets, First Time in 20 Years

• Gold and silver experienced a sharp, uncontrolled decline, mirroring a sell-off in Asian stock markets, a phenomenon not seen in 20 years.
• The primary cause was record-high margin debt in Asian markets, especially China, Taiwan, and Japan, leading to forced selling by leveraged investors.
• When gold and silver prices fell, investors with borrowed money faced margin calls, forcing them to sell other assets, including stocks, to cover losses.
• The selling was widespread across Asian markets, with South Korea's stock market falling over 5%, and weakness also seen in Taiwan, US, and European equity futures.
• Regulators in China had already tightened margin financing rules, indicating prior awareness of the risks associated with rising leverage.

Why It Matters: Uncontrolled gold-silver and Asian stock market crash driven by record margin debt and forced selling.