Why did Gold and Silver Plunge?

As everything gets crushed, it is natural to get out of Mr. Market’s destructive path. Although there will be all sorts of conflicting advice and recommendations, standing aside for a while appears to be prudent. That doesn’t necessarily mean leaving completely markets of interest, but reducing positions.
Those with precious metals are not immune from wealth destruction, although I like the odds better than those who hold stock. Last week was not easy on anyone unless they held cash or Treasuries. Both are ultimately horrible in the long term but were the only winners last week. They may be in the weeks ahead, depending on how markets behave.
Mish has an analysis of precious metals: Why did Gold and Silver Plunge? No, It’s Not CME Margin Hikes; What will the Fed do Next?  His advice appears prudent:

It’s a safe bet Bernanke will react, we just do not know when. Things may (or may not) get ugly for miners (especially silver) in the meantime.
Those with cash, should be rooting for a selloff in gold and miners. In the meantime, hold a core position in gold. Take profits on big spikes and buy big dips.

In my opinion, precious metals will outperform stocks over the next five years. Perhaps not so over the next five weeks. But your guess is as good as mine.