GOLD 0.51% $1,391.7 gold futures

80 yr history of brutal gold stock corrections

  1. dub
    31,248 Posts.
    lightbulb Created with Sketch. 256


    "For the past few weeks, it has felt as if the bear market in precious metal stocks cannot get any worse. But it has gotten worse, worse and much worse. It has been as if the precious metals mining and exploration companies are all going out of business imminently.

    Yes, it would be foolish to say that it cannot get worse from here. But both math and history are on our side. It is now very probable that a sharp multi-week rebound of at least 50% to 100% is near. The bigger question is how long will it take the $XAU and the juniors to climb back to its 2007/2008 highs. The $XAU would have to rise by 220%, while many juniors would have to rise 500%, 1000% or more.

    From the above historical observations we can conclude that major gold indices such as the $XAU, $HUI, BGMI and others can recover to their prior highs very quickly, sometimes even in less than a year. We can expect this today as well especially if gold begins to climb higher. However, most juniors (which now number in thousands) will never see their prior peaks of glory. Many of them will go out of business, others will be acquired, others will merge. The entire junior stock landscape is going to be redesigned. But high quality, cash rich junior producers and explorers which sit on good deposits will undoubtedly have a bright future. .............

    These are the concluding paragraphs from

    80 Years History Of Brutal Gold Stock Corrections
    Boris Sobolev
    October 25, 2008

    Rather encouraging for mine.

    ' - '

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.