Gold Stocks To Rally Like During The Great Depression And Early 70s

http://hubertmoolman.wordpress.com

Below, is an extract of my Gold Mining Fractal Analysis Report.

"He answered and said unto them, When it is evening, ye say, It will be fair weather: for the sky is red. And in the morning, It will be foul weather to day: for the sky is red and lowering."- Jesus Christ

During the Great Depression, at a certain point, gold stocks started a massive rally. While most things were going down in price, gold stocks made significant gains, becoming one of the best performing sectors during that time.

It was no coincidence that gold stocks performed as well as they did. Like all goods, gold stocks will thrive under the ideal conditions. During the Great Depression, those ideal conditions were present.

The purpose of this editorial is to look at what those conditions were, and identify a pattern that was present before and during those rallies. If we are able to identify those circumstances and pattern, we could look to see if they are present today, or in the future, in order to know when to expect a massive gold stocks rally. -- end of extract.

I then go on to identify those ideal circumstances and patterns that were present before and during the great gold stocks rally. The conditions today are very similar to then, and is an ideal set-up for a most spectacular gold stocks rally over the coming months. Here, I would like to illustrate, by way of a chart, how the conditions were similar.

The gold stock rally of the 1930s coincided with major economic decline, as well as a significant increase in the real price of gold. Below, is a chart (from planbeconomics.com) of the long-term Gold/Oil ratio:

read the full article: http://hubertmoolman.wordpress.com/2012/01/29/gold-stocks-to-rally-like-durin...

Category:

Education

Tags:

• HUI forecast
• HUI analysis
• Gold Stocks Prediction
• Great Depression
• Gold Stocks Great Depression
• Gold Oil Ratio
• Chart Analysis

[Atemaatra]

If its safer to hold physical gold during this depression, what are the risks of buying mining stocks given the likelyhood of a currency collapse. How would dividends be paid and what form of payment could i expect for my shares when i want to sell in say 3 years time?

Thanks

[freesk8]

This is great. Thanks for posting!

But if oil prices go up because of shortages (peak oil? increasing purchases by China? inflation?) then the gold/oil ratio may stay flatish, even though gold is rising nicely...

Oil is so volatile, it is a tough thing to denominate anything by...

But this is a very interesting analysis!

[highandwired]

Thanks

[sidkings]

Thanks very much

[greenknightist]

good take . thanks

[jonvssocrates]

Nice!

[ATAndrewTanya]

thanks 4 your info

[nepenthean]

ace