gold shares , page-8

"Key point is that we need stable or rising markets to gain benefit from gold/silver shares"

False imo:
That is the typical argument provided by dollar bugs to persuade others that there is no point investing in gold shares. Why would you when you can just as easily invest in other sectors that are "rising." Of course people will look at what has happened this year and agree that we need stable or rising markets to gain benefit from gold/silver shares. But we need to take a broader perspective and not be blinkered by the present.

If gold is trending higher strongly in US dollar terms while equity markets are falling then gold equities will move higher.

The issue of course is whether gold can be rising strongly while equity markets are falling.

Now with many experts pointing out that based on historical precedence we can expect to see a gold/Dow ratio of about one may I suggest that if the Dow collapses to say 3000 combined with US$3000 gold or 5000 with US$5000 gold that gold equities will have soared in price as gold companies will be one of the few, if only sectors where profits are substantially increasing.