Mike, not going much into historic details, I just note that 1. situation is now not the same as in 1933, and 2. looking at old charts gold-eagle.com (you have to scroll down) of HM vs DJIA, I notice there was no big uptick in HM till a year and a half after the crash (I won't say derogatory things about masses -g-, but note a similarity to the present 1 1/2 year delayed reaction to fundamentals in, e.g., semiconductor industry); and, actually, HM went down during the crash. I can only assume that now, when index funds and closet indexers start to sell down SPX, it's gold mining components will get sold too. Thus, my plan -g- is to buy some when they sell.
PS. It is not obvious to me that gold at $300 is cheap by historical standards, and I have not noticed much mines closures yet. US$ has gone up, but in Y or DM gold is even less cheap.
Platinum, palladium, silver have more industrial demand, though I don't know if it's likely to increase or decrease in near future.
PPS. Have you noticed my spelling is better? -g- |
