the price of gold stocks in january 2012, page-33

Tony,

If gold drops to $200 I would buy it (rather than buying shares in gold companies as I am doing now) as it would represent excellent value. Accumulating physical gold at historically low prices is a proven way of building wealth. Basically buy shares in gold companies in the later half of a long-term bull market in gold, switch to the non-gold equity market at the peak of the gold rush and then start bying physical gold when the equity market runs out of steam (as it did in 1999 in Dow terms). Tricky bit is to time it to perfection. You are betting on that the end half of a classic major gold bullmarket (finishing in a mania) will never materialise this time around whereas others myself included believe that rapidly increasing inflation will indeed propel the bull market into a more manic stage.