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is right ..the miners that sold their gold to the ROYAL companies have sold their future and kept their high salarys at the expense of stockholders future earnings. ITs no different than hedging .you get current money instead of future earnings.Many Managements have sold stockholders out to get current income..Thats why you should own Royalty companies or miners that did not get money from them.
The price will adjust itself until it takes into account all the inflation since the last run,let me see I think that was 1974 when gold was $116.00oz .Let me see I think thats about 500 % inflation since then..We start at 1300 per oz X 5 =$6500 price per oz ,maybe $100 for silver and we got about 3 years inflation to go from here ..with the current spending pace ..by end of this run $10,000 gold and $200 Silver dosent seem unusual at all…Before its over the GOLD price will adjust itself for all the previous inflation…YOU can measure everything against real money .Whats the DOW GOLD RATIO ? will it go equal again ?
The granddaddy of gold bull cycles occurred during the 1970s, culminating in an unabashed mania in 1979 and 1980. Gold peaked at $850 an ounce on January 21, 1980, a rise of 276% from the beginning of 1979. (Yes, the price of gold on the last trading day of 1978 was a mere $226 an ounce.)
Here’s a sampling of gold producer stock prices from this era. What you’ll notice in addition to the amazing returns is that gold stocks didn’t peak until nine months after gold did
Today, GDX is selling for $26.05 (as of February 26, 2014); if it mimicked the average 289.5% return, the price would reach $101.46.
Keep in mind, though, that our data measures the exact top of each company’s price. Most investors, of course, don’t sell at the very peak. If we were to able to grab, say, 80% of the climb, that’s still a return of 231.6%.
Here’s a sampling of how some successful junior gold stocks performed in the same period, along with the month each of them peaked.
Returns of Juniors in 1979-1980 Mania
Company
Price on
12/29/1978
Price
Peak
Date
of Peak
Return
Carolin Mines
$3.10
$57.00
Oct. 80
1,738.7%
Mosquito Creek Gold
$0.70
$7.50
Oct. 80
971.4%
Northair Mines
$3.00
$10.00
Oct. 80
233.3%
Silver Standard
$0.58
$2.51
Mar. 80
332.8%
Lincoln Resources
$0.78
$20.00
Oct. 80
2,464.1%
Lornex
$15.00
$85.00
Oct. 80
466.7%
Imperial Metals
$0.36
$1.95
Mar. 80
441.7%
Anglo-Bomarc Mines
$1.80
$6.85
Oct. 80
280.6%
Avino Mines
0.33
5.5
Dec. 80
1,566.7%
Copper Lake
$0.08
$10.50
Sep. 80
13,025.0%
David Minerals
$1.15
$21.00
Oct. 80
1,726.1%
Eagle River Mines
$0.19
$6.80
Dec. 80
3,478.9%
Meston Lake Resources
$0.80
$10.50
Oct. 80
1,212.5%
Silverado Mines
$0.26
$10.63
Oct. 80
3,988.5%
Wharf Resources
$0.33
$9.50
Nov. 80
2,778.8%
AVERAGE
2,313.7%
If you had bought a reasonably diversified portfolio of top-performing gold juniors prior to 1979, your initial investment could have grown 23 times in just two years. If you had managed to grab 80% of that move, your gains would still have been over 1,850%.
yes, the stats look horrific on it–it has 500 mill float but I was impressed with the holders and
very impressed with the volume today=10.3 mill V.S. 2.5 mill avg daily vol…that volume tells me that—crappy as it is—There is INTEREST—G*d only knows why—and it will rise IF we get this bull moving quicly—it was over $5 in 2018 and 6.30 in July 2016—so there is a track record– I got 300 aug one buck calls for a nickel each….I had two big days of profit so it is well within my budget…and another thing= it was up 9.2% on 5X daily avg. volume and, at 4;07, is up another 3 cents at 80 cents for a 13.2% gain today…Wow it’s 4:11 and there’s already 334,800 volume in the extended trade… what I want to know is WHY those buyers were so determined to own it today…I think the answer is that they feel that this move in gold is real , the tide will raise all boats, and there are few el cheapo items left on the bargain table…
New York Jets running back Le’Veon Bell says that the two women who stole $520,000 from him were last seen naked, in his bed.
The three-time Pro Bowl player told police that he had brought home the two girls on Friday night, May 25, and when he woke up the next morning, they were lying naked and asleep in his bed. He then said he went out to do his morning workout, but when he got back, the girls were gone and so was over half a million bucks in jewelry, money, and other property.
Bell relayed the whole sorry tale on a 911 call obtained by TMZ.
“I had two girls in my house. I got up,” Bell said, “did my normal routine to go work out, left to work out for a couple of hours. When I came back, they took my money, they took my watch, my jewelry, a couple more things of value out of my house, and I don’t know where they at. I tried to call them before I called you guys. I tried to call them, and they’re not answering me, and they’re ignoring me.”
This MIGHT be the beginning of the third and biggest last wave up. The first wave was 1970-1980 was $140 to $800. The 2nd big wave 2001 to 2012-13, $250 to $1900. The third wave?? Started at $1,060 late ’15 early ’16.
The Trump rhetoric campaign in mid ’16 DISRUPTED the leg up. It killed the gun stocks too. Because he told everybody, don’t worry about the economy, and don’t worry about your guns. So he gave the regular stock market a boost, that seems to be too high.
Known as the everything bubble. Stocks bonds and real estate, all three in bubble zone. Gold is too cheap. Still. Gold should be $2800. Everything is 20 times more. From 1970s era. Gold was $140 X 20 = $2800. Almost everything is 20 times more. Pizza slice .15 cents times 20 = $3.00.
Bitcoin is like Gold in the early 1980’s before futures and derivatives could restrain it into a tiny cage. The boyz aren’t ever letting gold fly, sorry zero chance. But dream big. If it does fly, we lose everything and the world goes to hell. Mad max style. No thanks.
Yeah, it’s hard for me to differentiate this rally from any other except that we’ve hit six year highs in gold. If it’s only day 3 then I guess we have a long way to go and I since I know I’m not worth a shit at trading I might as well hold like I have all the way down?
Question is for how long? How long does this rally go if it’s for real?
There are surely a lot of beaten up names out there that could easily double or triple from here if gold were to get to $1600 or more. I guess the trick is not giving it all back.
Dollar is starting to look pretty weak though. Exactly what Trump wants.
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Call it 1400. Like when you buy gasoline. Always they add .99