Will mining shares outperform like they did in Great Depression?

[Chance411]

I found a link awhile back where it listed various mining stocks in 1970 and then their value in 1979 - 1980. It was insane. Companies trading for under a dollar worth 250 or more ten years later. I specifically remember one company (who's name escapes me now) trading at 4.00 a share and 637.00 ten years later. I wish I could find the web page again to show, but I can't find it anymore.

A side note. Did Chris take his blog down again? Why does he keep doing that?

[TheBullionBull]

@Chance411 I don't know why he does that. His vids are quality. Anyway, thanks for the advice, the shares are certainly lagging, so maybe its time to break from the crowd, eh?

[dbacks933]

All-in on the mining shares. The price move will be epic.

[DVDBeaver]

It happened twice - not once. It happend in the 70's as well - mining shares went up an avergae of like 25X - when everrything else plummeted and 40X in the Great Depression.

[TheBullionBull]

@DVDBeaver The 1970's were not really a depression, but I see your point.

[TheBullionBull]

@999SoundMoney Rising oil costs could play a role, but those costs would not be unique to mining. And mining took place before gasoline/petrol - I imagine if things get bad enough, there would be plenty of people willing to work with a pick and shovel for a roof and three square meals a day.

[1IIIIIIIIII1]

CHAPMAN SAID THAT MOST PEOPLE DID NOT TURN IN THEIR GOLD BACK THEN, BUT THAT DOESNT MEAN THAT MANY DIDNT WANT TO BUY INTO GOLD ASSETS, SO THAT MIGHT HAVE DROVE UP MINERS...SCHIFF SAYS HE MADE MORE MONEY IN GOLD STOCKS THAN METAL SO FAR, BUT I THINK HE MEANS GLD, WHICH IS NOT A MINER....ON STOCKS, I WONDER WHY NOT JUST WAIT FOR THE NEXT BIG CRASH AND THEN BUY SOME DIRT CHEAP STOCKS HERE AND THERE? UNLESS YOU DAY TRADE..

[TheBullionBull]

@1IIIIIIIIII1 Yeah, I think what I am getting at is that since people couldn't buy bullion, the mining shares were the best proxy available. Whereas today, people don't need to own a mine in order to hold gold. A mining share is risky, because even if gold goes up, there could be a problem at your specific mine (disaster, strike, mismanagement, lack of permits, etc).

[1IIIIIIIIII1]

@TheBullionBull YEAH, IF A GUY HAS SOME EXTRA MONEY, HE CAN BUY SOME MINING STOCK IN A WELL SETTLED COMPANY. OR GAMBLE ON A JR. IT MIGHT WORK OUT. IVE GOT ALL MY MONEY IN A NIGHT CRAWLER FARM IN BOTSWANA...

[rocky315w]

international currency not based on the yuan, so you think gold mining equities would be going through the roof as golds demand and price hit new highs. Think demand will grow, something it didn,t do during the depression and wiht gold price set at $32 oz one must wonder why mining stocks did so good at that time. But of cource the bigger question is why aren,t they doing better now. I think your analysis is right on" one swan does not a summer make" Many thanks for keeping us informed.

[Chance411]

@rocky315w

A big thing I've learned in investing over the years is if something is lagging behind, then buy it. Thats the real value. An analogy is silver to gold. Gold going nuts, but silver lagging behind (a year ago when it was 17 -18 bucks). So buy the instrument thats being suppressed or no one seems interested at the moment.

Mining companies are lagging right now. I do expect a correction in pms in the next year as it will hit the fan I expect.

[rocky315w]

sold as bullion then for jewelry ans also for the first time, even though there is a growing middle class more jelery was returned for melt or whatever in India the was sold. So as the united state gov consumed gold during depression they are presently not doing this but other countries are. India just bought 200 tons, China 500 tons and even Indonesia 70 tons. So there is a large demand for gold.The Chinese announced they want to purchase 15,000 tons for a newI

[rocky315w]

las year to the tune of 770,000,000 oz mined and 1,050,000,000 oz used the difference being made up by reserves and melt. In the depression there were still many operable silver mines. as was still the case when the Hunt Bro. tried to corner the market. This is no longer the case. Now Gold is in more demand then during the depression as many reserve banks are aquiring gold in competition with people like us and jewlry, Now a little sude bar, last year more gold was

[rocky315w]

There are number of varriables that were not in place during the depression. The over all question on silver mining today is the fact that most silver now is a byproduct of copper and gold and all new gold and copper mines are silver free. Most silver is located within 200 feet of the surface and all that silver is gone. Geologist assure everyone that mined silver will completely be used up in 7 to 9 years. Last year and for the past 10 years more silver has been used then imned