Loading ...Gold miner Homestake Mining 1929
In 1929 crash Homestake mining stock rocetted to much higher level. Remember gold price was fixed at $20/oz in gold standard era.
So price of gold has nothing to do for mining stocks to rise.
Last week interest rates and credit market turn. A small spark to fire the camp fire????
If price was “fixed,” and private gold was confiscated, how can you conclude that it had no effect on miners? Wasn’t a miner the only way to get in on gold?
Also, what’s keeping me awake lately is Plunger/Dalio etc. with a HUI 100 prediction before miners take off again. I’m loaded at the moment but will an equities crash take miners with them–at least initially?
Good points Curly
I do think PM miners will drop with the general stocks initially .like in 2008 ( if we get that scenario)
Miners reacts ro speculation in silver market. At the height of 1929 bubble GSR was at 124. When market crash GSR GSR crashed don with it. Silver went up compared to fixed gold price.
In 1968 GSR was down to 14. AND BGMI to gold ratio was at the top. Ever since it has been in bear market.
Look at the long term chart of GSR on Schism post below: and line up the miners trend.
Plunger is projecting GSR will break above 95 last high in Oct 2008.
Data shows GSR is the key to miner trend.
https://goldtadise.com/?p=434408
Thanks Bikoo for that link. Those charts there are very interesting indeed.