Of course, that Newcrest must have a lot of weight to the point...

Of course, that Newcrest must have a lot of weight to the point of acting as a proxy for the whole market. If you go oversees the chances are that people would know about Newcrest but not about Santa Barbara let alone penny stocks.

You have also to compare the gold index with the other indexes in order to to see if the move is specific to the sector or general. If it is general then you could or should go even further and see if the move is global.

Paradoxically, inflation in its early stages is very good for business, employment and GDP growth. This is because expectations about sustained inflation enables the entrepreneurs to estimate prospective returns on their investments as capable of bringing more money and also because more savings are made available for investment because consumers are compelled to consume less due to price increases.

Private or gov stuff-ups, excess debt, bankruptcies are deflationary things which are no good at all for stocks.

So, what is really needed is a little inflationary burst.

For those with an interest for serious stuff here is a link to where to start.

http://uneasymoney.com/