<<Very astute...
Interestingly, when the gold stocks tanked in '87, the POG held up pretty well and only started to decline a few months later. This is why I refered to Gold Stocks and NOT the POG. Never the less, the POG didn't set the world on fire either at that time but on the other hand the world didn't go to h&ll in a hand basket either, even though it looking like it would on October 19th, 1987.
True, gold can be construed as a currency. The arguement goes though, that there are a lot of other currencies that pay dividends. Gold doesn't. So the gold bug arguement goes that gold will be the last standing reserve currency. Maybe it will be, but it sure will be an ugly world when it does. I'm storing a little food and fishing tackle.>>
I have some rather interesting data on the history of HM stock dating back more than a century. While the gold stocks also dip hard during an absolute crash(though at times not like the other issues), they recover very nicely. Sometimes it took weeks, others, months. It always happened. There was even a rather nice gold stock move well after 87 crash.
cheers
rh |
