As markets continue to plunge expect traders to have more margin calls (i.e. illiquidity). More margin calls could result in more traders selling gold to raise cash (i.e. liquidity). 

Good news for gold buyers – this will mean more temporary pullbacks in the gold price.

I recommend taking full advantage of them. 

PS. Don’t buy anything on margin. Not even gold. Not unless you want to experience a margin call

Raoul Pal is an Economist, Investment Strategist and Founder of Global Macro Investor and Realvision. Realvision aspires to be the Netflix of Finance.