SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Gold Price Monitor
GDXJ 109.23+3.7%Nov 28 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: long-gone who wrote (65152)3/8/2001 3:18:37 PM
From: GraceZ  Read Replies (1) of 116786
 
Money can be made long even in bear markets. The speculative excess that took place in gold back in the 70's and 80's is pretty similar on a graph to the speculative excess that took place in Nasdaq. If it takes twenty years before 5000 is breached again I can say with reasonable certainty that the public will have the same distaste of Nasdaq that they have for gold. That was my only point. Obviously gold didn't crash and just stay down for good. It took many rallies followed by declines to kill the desire to own gold. Money could be made during these rallies. And, it will take many rallies followed by declines to kill the desire to own Nasdaq stocks.

The fundamental difference between the two is that market indexes are self healing. The failed companies are removed and replaced with those that succeed. Most companies fail. Of course, this self healing only really works if we are not in a secular bear in equities. One could say that the inverse relationship between industrials and gold has been reestablished, so a major failure on the part of the equity markets (not just Nasdaq) would bring about the conditions similar to what we saw in the seventies wrt gold. Either that or someone discovers some unique purpose for gold that would solve some major human need, like a cure for cancer or as a replacement for current energy sources.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News