I've been buying a few gold and silver stocks finally this past week: ABX, SSRI, PAAS. But I remember 1987 when gold stocks went down in the crash when they "should have" gone up. I sold mine on crash day then because they faltered and started to fall even though gold bullion itself held up until December 1987.
There are two or three anti-gold stock pressures now. One is the general dumping of all stocks on margin calls, and another is the fear that financial disaster will be deflationary and cause gold bullion to collapse. Gold has come down for the past ten days. If that continues, there is a real chance of deflationary economic regime change even though we are in an inflationary era. A third pressure clearly is fear of what the US election will bring, and that result is becoming clearer by the hour. Capital flees from empowered anti-capitalists. "Sauve qui peut" as they say in the old country.
There are two or three anti-gold stock pressures now. One is the general dumping of all stocks on margin calls, and another is the fear that financial disaster will be deflationary and cause gold bullion to collapse. Gold has come down for the past ten days. If that continues, there is a real chance of deflationary economic regime change even though we are in an inflationary era. A third pressure clearly is fear of what the US election will bring, and that result is becoming clearer by the hour. Capital flees from empowered anti-capitalists. "Sauve qui peut" as they say in the old country.
So far it is bullion which seems safest in all events.
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