Will mining shares outperform like they did in Great Depression?

Will gold and silver mining shares perform the same in the near future as they did during the Great Depression? Bob Chapman (The International Forecaster), Pierre Jovanovic (jovanovic.com), and many others think so, but is it possible that physical will outperform? Maybe I am off-base, but I want to know what Max Keiser, Mike Maloney, Joe "SilverFuturist", Chris of Weekly Telegram think.

Link to the James Turk interview I referenced: http://www.youtube.com/watch?v=XBJiTS4LeLQ

Category:

Education

Tags:

• gold mining
• james turk
• bob chapman
• silver mining
• max keiser
• silverfuturist
• great depression
• bullion
• shares
• king world news

[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?

[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.

[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).

[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.

[dbacks933]

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

[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...

[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.