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Precious Metals During A Stock Crash

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Notice that stock slump late 1987 ? XAU didn't do too well during and after that did it ?

Pent

Gold was in a long term bear market at that time. Gold stocks had gone up in 87 in a bear market rally. The crash of 87 was a technical correction to non-gold stocks during a long term non-gold stock market bull market.

During gold bull markets of the early30s and 70s gold stocks went the inverse of the stock market declines.

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Gold was in a long term bear market at that time. Gold stocks had gone up in 87 in a bear market rally. The crash of 87 was a technical correction to non-gold stocks during a long term non-gold stock market bull market.

But from 85 to 87 gold had risen dramatically from $300 to $500,

actually much quicker than is currently the case, right up until

the stock market crash. I imagine they

were very bullish about gold back then too, and thought

that if the market crashed gold and gold stocks would do just

great, when in fact they declined for more than a decade

afterwards. Same with silver.

Honest question, I'm just a newby looking at the graphs.

Pent

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But from 85 to 87 gold had risen dramatically from $300 to $500,

actually much quicker than is currently the case, right up until

the stock market crash. I imagine they

were very bullish about gold back then too, and thought

that if the market crashed gold and gold stocks would do just

great, when in fact they declined for more than a decade

afterwards. Same with silver.

Honest question, I'm just a newby looking at the graphs.

Pent

You have to look past the price. Gold going from $300 to $500 at the time did not go through any significant levels so the move meant nothing. Long term interest rates had come down from 14% in 84 to half that in 86. They spiked up to 10% in 87. So there may have been fears of inflation returning but they were misplaced. So gold was not in position to go up. People who bought gold at that time were just plain wrong.

Gold stocks have only very recently completed a major basing formation and are in position to go up. At this point gold stocks will go up as the rest of the market goes down.

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Gold stocks have only very recently completed a major basing formation and are in position to go up. At this point gold stocks will go up as the rest of the market goes down.

Thanks for the reassurances, gives me more will power to hold

my juniors through the next market hiccup.

Pent

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But from 85 to 87 gold had risen dramatically from $300 to $500,

actually much quicker than is currently the case, right up until

the stock market crash. I imagine they

were very bullish about gold back then too, and thought

that if the market crashed gold and gold stocks would do just

great, when in fact they declined for more than a decade

afterwards. Same with silver.

Honest question, I'm just a newby looking at the graphs.

Pent

sure,but going parabolic(like 1999 dotcom) is not a good sign for that market.slow and steady upwards is nice.....of course,if it goes parabolic and you were lucky enough to get in at a really low price then it is VERY good news,so just ride it until the suckers come to play.

gold is STILL cheap at these levels...in 1970's terms we are only at about $180/oz(inflation adjusted)....if we were to go to peak levels again then $3000/oz(current) is not inconceiveable.....a dollar slide or major terrorist attack would certainly be a basis for another leg higher.

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sure,but going parabolic(like 1999 dotcom) is not a good sign for that market.slow and steady upwards is nice.....of course,if it goes parabolic and you were lucky enough to get in at a really low price then it is VERY good news,so just ride it until the suckers come to play.

gold is STILL cheap at these levels...in 1970's terms we are only at about $180/oz(inflation adjusted)....if we were to go to peak levels again then $3000/oz(current) is not inconceiveable.....a dollar slide or major terrorist attack would certainly be a basis for another leg higher.

Many talk about gold but the natural resource that holds the greatest potential in the light of soaring oil prices lies beneath our feet: COAL It may not glitter but it keeps the home fires burning.

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Many talk about gold but the natural resource that holds the greatest potential in the light of soaring oil prices lies beneath our feet: COAL It may not glitter but it keeps the home fires burning.

coal is certainly a good alternative play,even things like forestry products look tempting.

...we can certainly economise on fuel use,if you are lucky enough to have an open fire then start by using all the junkmail,then go buy coal if you really must!!!

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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