The Gold price trend has definitely been reversed, and it will go back down below $1200.The Gold stocks will only go 10% , so those already in, hang on.New people, initiate there buys when Gold goes below 1200.HOW DO I COME TO THIS CONCLUSION? I AM ONLY FOLLOWING WHAT HAPPENED IN 1980 TO THE GOLD STOCKS AFTER GOLD WENT DOWN FROM 875 TO 550 RAPIDLY, AND AM EXTRAPOLATING FROM THAT.
1) This is not 1980 - Central banks are net buyers of gold2) We are getting into the strongest season of the year - Indian wedding season etc - major gold purchasesTherefore - I respectfully but strongly disagree with your assumptions re the POG. However, IMHO the miners are cheap at these levels and respresent excellent values - so I guess you & I are in sync there !
This is definitely not 1980. Good luck with your "theory"...
Yes. I looked at the 1980 Gold chart, and the Gold stocks only went down 10% like you said, while Gold went down 32%.I don't know if it will happen the same way, but the chances are history will repeat, as many things in the market do.