Rennies, in a post bubble contraction gold excels. According to Bob Hoye, gold's bull market relative to commodities, didn't even start until 2007. This became very evident in 2008 with the $A gold price rising 38% when everything else seemed to crash. So if markets are to collapse again, gold in AUD terms should do very well.
The exciting challenge is that with the real gold price rising, gold stocks start making lots of money. There are gold companies that have risen many multiples from even their pre-GFC levels... for those not burdened by financing problems and are meeting targets.
I've been looking for evidence that gold stocks as a group are decoupling from the general market, as they did in the 2001-03 period with the HUI rising 500% and the DOW oscillating between 7,500 and 10,000. So far it hasn't really happened although as Fiendish RedBeard has pointed out, market leader Newmont has just hit a 10-yr high. That's maybe a good sign.
As always it comes down to money management, knowing thyself, all that boring yet important risk management stuff.
Rowingboat
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