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What Gold Did During The Great Depression


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#1 Asheron

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Posted 03 March 2012 - 10:03 PM

It seems to be the question of the week for me when speaking to people..What did Gold do during the Great Depression. Well if you had the physical you were required by law to turn it into the FED govt. In return you a certificate. Basically it was illegal to own physical gold during the darkest hours of the depression. However gold shares went through the roof. I had a client forward me a chart of Homestake mining. It seems potentially if we get into the same situation as the great depression and even with the initial deflation gold shares went through the roof.

Posted Image


http://myinvestorspl...eat-depression/

Edited by Asheron, 03 March 2012 - 10:03 PM.

Max Keiser --- http://maxkeiser.com/
Peter David Schiff --- http://www.europac.net/
Gerald Celente --- http://www.geraldcelente.com/
Jim Rogers --- http://www.jimrogers.com/
Bob Chapman --- http://www.theintern...om/Bob_Chapman/

Investors should abide by money management principals & never risk more than they can afford to lose.
There are No guarantees when investing in the Stock Market or Precious Metals. You might lose all your money and cry.

#2 Asheron

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Posted 03 March 2012 - 10:06 PM

Agnico-Eagle (AEM-NYSE)
Anadarko (APC-NYSE)
Apache (APA-NYSE)
Goldcorp (GG-NYSE)
Minefinders Corp. (MFN-ASE)
Pretium Resources (PVG.TO)
Hellix Ventures (HEL.V)
Abington Resources (ABL.V)

;)
Max Keiser --- http://maxkeiser.com/
Peter David Schiff --- http://www.europac.net/
Gerald Celente --- http://www.geraldcelente.com/
Jim Rogers --- http://www.jimrogers.com/
Bob Chapman --- http://www.theintern...om/Bob_Chapman/

Investors should abide by money management principals & never risk more than they can afford to lose.
There are No guarantees when investing in the Stock Market or Precious Metals. You might lose all your money and cry.

#3 pyracantha

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Posted 03 March 2012 - 10:24 PM

Sorry, link not working for me.

Edit - thanks for fixing

Edited by pyracantha, 04 March 2012 - 09:21 AM.


#4 SuperChimp

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Posted 03 March 2012 - 10:33 PM

Good find Asheron.

It seems potentially if we get into the same situation as the great depression and even with the initial deflation gold shares went through the roof.


I agree. With a rise in gold prices the companies which control the supply of gold will be making a fortune and paying out large dividends. I am always cautious regarding shares however as if there was a large financial crisis (leading to a wider economic collapse) what would stop these private companies being nationalised and shareholders denied any compensation? :huh:

In the coming financial crash the price of commodities, stocks and shares will all rise as people start to panic. The biggest losers will be people on a fixed income, pension funds and people who have all their savings tied up in bank accounts.

This is the best chart I can find that shows gold price in the 20th centruy adjusted for inflation and I think the price of gold will reach even greater heights.

gold-REAL-dollars.gif

#5 Take Me Back To London!

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Posted 03 March 2012 - 10:54 PM

Good find Asheron.



I agree. With a rise in gold prices the companies which control the supply of gold will be making a fortune and paying out large dividends. I am always cautious regarding shares however as if there was a large financial crisis (leading to a wider economic collapse) what would stop these private companies being nationalised and shareholders denied any compensation? :huh:

In the coming financial crash the price of commodities, stocks and shares will all rise as people start to panic. The biggest losers will be people on a fixed income, pension funds and people who have all their savings tied up in bank accounts.

This is the best chart I can find that shows gold price in the 20th centruy adjusted for inflation and I think the price of gold will reach even greater heights.

gold-REAL-dollars.gif



It is highly likely that the mining companies will get hit with windfall taxes.

Edited by Take Me Back To London!, 03 March 2012 - 10:57 PM.

Bankers may well have acted as if they’ve been sitting in the casino during the boom years. But it was a state-owned casino, with governments as the croupiers, and central bankers behind the bar giving out free booze.

John Stepek

#6 Ruffneck

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Posted 04 March 2012 - 04:15 AM

It is highly likely that the mining companies will get hit with windfall taxes.

already happening in OZ
i'm selling all my gold and silver holdings in july , will be buying some land in the country with the proceeds!
“The world has been chilling sharply for about twenty years. If present trends continue, the world will be about four degrees colder for the global mean temperature in 1990, but eleven degrees colder in the year 2000. This is about twice what it would take to put us into an ice age.”
• Kenneth Watt, Ecologist , Earth Day 1970

#7 SuperChimp

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Posted 04 March 2012 - 09:52 AM

already happening in OZ
i'm selling all my gold and silver holdings in july , will be buying some land in the country with the proceeds!


Do you plant to buy land in Australia? I thought it was very difficult to farm anything away from the coastal areas?

It is highly likely that the mining companies will get hit with windfall taxes.


Reminds me of when the American government banned the ownership of gold in the 1930s and then as the price increased anyone who needed to sell was taxed heavily.

#8 R K

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Posted 04 March 2012 - 11:49 AM

* Gold was made illegal during the GD.

* It was confiscated for $20 and then revalued (currency devalued) to $35

* Homestake mining was the only way to take exposure to gold

* We're already 5 years post-crash. Equivalent to 1934/5. Homestake minings had made its move

* Post the chart for the next 10 years. It flatlined and fell 50%

* Today gold isn't illegal to hold

* c. $10trillion is held one way or another

* GLD holds more reserves than most developed world central banks, including France

* The move off the 30% price crash in '08 has largely happened.

* Mining costs have soared meaning margins are flatlining (though clearly profitable)

* Taxy taxy

Of course the industry VIs need a rising supply of innocent new buyers to keep price accelerating the same as any other bubble market using the familiar tactics of fear of missing out, one way bet, maligning of nay-sayers, new paradigm, no alternatives, NLP etc etc


"The problem with capitalism is that eventually you end up with everyone else's money" RK
"We have now entered The Great Rebalancing 2007-20xx" - RK
"Gold will go to $1000, Silver to $18" - RK August 2011
QE £100bn and build 1m council homes - RK
Carney announces the launch of Empire 2.0 - Rise of the Banksters Oct '13


#9 SnapCrackleNPop

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Posted 04 March 2012 - 08:02 PM

Of course the industry VIs need a rising supply of innocent new buyers to keep price accelerating the same as any other bubble market using the familiar tactics of fear of missing out, one way bet, maligning of nay-sayers, new paradigm, no alternatives, NLP etc etc

And you have been wrong for how many years??

Why do you have such a passion for Gold?
"We must not let our rulers load us with perpetual debt" Thomas Jefferson.


"The modern banking system manufactures money out of nothing" Josiah Stamp.

#10 R K

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Posted 05 March 2012 - 11:35 AM

And you have been wrong for how many years??

Why do you have such a passion for Gold?


I've been 'wrong' about what exactly?

I called the $1000 top, the $1920 top, the $700 low and the bubble.

Do you have any worthwhile points to make about the points raised in my post that we could all learn from or do you wish to confine yourself to your adhominems. The last refuge of bubbledom.

Edited by Red Knight, 05 March 2012 - 11:40 AM.


"The problem with capitalism is that eventually you end up with everyone else's money" RK
"We have now entered The Great Rebalancing 2007-20xx" - RK
"Gold will go to $1000, Silver to $18" - RK August 2011
QE £100bn and build 1m council homes - RK
Carney announces the launch of Empire 2.0 - Rise of the Banksters Oct '13


#11 Stay Beautiful

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Posted 05 March 2012 - 09:46 PM

I've been 'wrong' about what exactly?


How long this current Gold Bull will run,



#12 Ruffneck

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Posted 10 March 2012 - 09:31 PM

Do you plant to buy land in Australia? I thought it was very difficult to farm anything away from the coastal areas?

Yes , around 80% of OZ is desert.
I am buying within 100 km of the coast.Average rainfall there is 750mls , mean temp around 22 degrees.
“The world has been chilling sharply for about twenty years. If present trends continue, the world will be about four degrees colder for the global mean temperature in 1990, but eleven degrees colder in the year 2000. This is about twice what it would take to put us into an ice age.”
• Kenneth Watt, Ecologist , Earth Day 1970




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