Serious, do you know much more about him...
If the market tanked next year maybe to 5500-6500, do you think that would
encourage Gold purchases...
Also historically have Gold stocks risen with the POG even with the stock market was
tanking????
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I think Wayne Angell is now a consultant at Bear Stearns. In 1996 he predicted that gold would dip below $300 before 1997 is out. Well, he was right.
I believe there will be buying of gold if the equities tank next year. As to how much buying, who knows? I base my belief on the fact that way back on Black Monday, October 19th 1987, when the markets CRASHED!!! there was some buying of gold which continued for the next little while. Later on, the gold was sold for profits. Apparently, the gold money and profits were later reinvested into equities as they gradually came back to life over a period of 18 months. Most investors recovered their losses 18 months after Black Monday!
Generally, the senior producers (ABX, PDG & NEM) seem to move in lockstep with the pog. Also this is true of Franco Nevada (FN) and Euro Nevada (EN) despite the fact that these two collect royalties for gold (produced by other companies) from FN's and EN's properties. Regardless of whether the pog is up or down, they still get their royalties. For this reason alone, FN (and EN) are favourite gold stocks. It is generally believed that if gold makes a comeback, it is the senior gold stocks will be the first ones to surge. |
