GOLD and CRASH, page-6

Joey

Gold has a VERY strong INVERSE CORRELATION with equity (share) market returns... a century of data shows that the correlation stands at -.80 (a very strong inverse relationship).

In lay mans terms, this simply means that historical data supports the thesis that as the share market falls, the POG, and gold market securities will rise.

The price of any asset or market divert from such relationships and fundamentals in the SHORT TERM, however, looking out a couple of years, history says that those that are long gold will be very well rewarded for their patience and contrarian thinking.

All in all, this means that Aussie gold stocks will also rise significantly in the medium term, imho.