I do not think that we go down here but if we do it would be no different than what happened to oil stocks 2 years ago. They seem to have not suffered very much for it. Take a look at the $XOI between 2001-03. PMs look much more bullish than oil did. I am a firm believer that the longer the consolidation the bigger the bull that results. Any break lower in gold stocks should be repaired very quickly.
Another thing that makes me lean towards not going down is that most are looking for 10%-20% lower prices to buy. Will they all wait for the lowest price or will they start buying sooner? If they all are waiting for $XAU 75-80 then we will not be there very long will we? It gold buyers are waiting for $375-$400 we would not be there very long either.
Which looks better? $XOI in 2002-2003 or golds now (even if we do see 150)?
stockcharts.com[p,a]dicayyay[d19990410,20050410][pb50!b200!i][vc60][iUb5!Lp14,3,3!La12,26,9!Lb14]&pref=G
stockcharts.com[p,a]dicayyay[d19990410,20050410][pb50!b200!i][vc60][iUb5!Lp14,3,3!La12,26,9!Lb14]&pref=G |
