Bob Hoye-Post Bubble Contraction Investing
Members not new to this term PBC.
Recent post on GSR Bob wrote better than earlier post below.
Recent PDF on the subject.
“It is worth adding that it is the only sector that can be determined to do well during the
lengthy post-bubble contractions. Furthermore, all gold sectors, from “Majors” to
“Juniors” outperform.
Also providing support to the transition has been that the Gold/Silver Ratio declines with
the bubble and goes up with the contraction. Moreover, on each contraction the ratio
reaches sensational highs. In the 2008 Crash it reached 93, which compares to104 with
the 1990 crisis. In December when it was at 87, we thought that it could soar to “around
115”. It reached 131 on March 18…… .. Momentum on the Silver/Gold ratio became extreme as the bull market for the sector
blew out in 2011. The Weekly RSI on silver soared to 90 when we noted the action had
become “dangerous”. The only time it had been that high was in January 1980—the peak
of that mania.
In March, we noted that the Weekly RSI had finally reached the opposite extreme at 11,
signaling the end of the long decline. Constituting a “Buy”.”
Leave rest for you to read more here …..
http://www.321gold.com/editorials/hoye/hoye042120.pdf