Thanks for posting the index. As you know, Lou Ruckeyser
concluded that the gold move "petered out". I personally
thought that last Friday's action was very important for the
gold market. Gold rose over $3 and the XAU was up over
2 points in the face of a very negative overall market
and, finally, a big drop in the stalwart Nasdaq.
This is one of the few times in recent memory (past 20 yrs
or so), that we are beginning to see a divergence between
the overall market on the one hand, and gold and the shares
on the other. This happened in the 70's, but Marantette
insists hasn't occurred since: which is why he has often
stated that his best gold/gold stock rallies have occurred
within the same timeframe as an overall up market, at least
for the past 20 years or so. He is coming around to
believing that we may finally be entering a period of
divergence. Looking back at some charts, I note that in
1973, gold and gold stocks were up significantly while
the Dow dropped steadily all year. 1974 was a tough year
again for the Dow, worse than 1973. Looking at three gold
stocks (Homestake, Dome Mines, and ASA) they were basically
unchanged for the year, and were reasonable hedges that
year. From 1976 through 1979, the Dow went sideways,
while the gold stocks steadily appreciated.
Sorry for the rambling, but I wonder if we are about
to revisit the 1970's?
Regards
Dan |
