is this time to short gold?, page-44

"Once the newsletter writers start to promote the junior stocks, we will see a move towards a mania."


The newsletter writers on Gold-Eagle, 321gold, GoldSeek etc have been promoting gold juniors for many many years. Get rich quick, maximize leverage to a rising gold price etc etc. Most stocks have gone backwards including companies Country Writer has promoted.

What these promoters won't let newbies to the sector understand is that bullion is the place to be in a bull market, forget the stocks. This has been the case in this bull market, particularly since 2004, and it was certainly the case in the 1970s when gold stocks only outperformed bullion AFTER the bull market was over.

Here's a chart with the evidence showing the Barron's Gold Mining stock index vs. USD gold price from 1974 to 1983: