"Do they still think rising US interest rates are good for the US dollar and bad for gold? Old habits die hard."
I agree. I know last night someone said Gold stocks will most probably fall with the market, as they did in 1987. We quickly forget the huge run in Gold stocks from 2001 to 2003, while the Dow was going nowhere but down. Same as the early 70's when the Dow bottomed out and The Bulletin wrote articles predicting the collapse of the Capitalist system – Gold stocks performed fantastically. In 1987 gold bullion was effectively 6 years into an 18 year bear market – and contrary to the gold price --gold equities had been up trending from 1981. A much different story today, we are 4 years into a (who knows) year long bull market in gold bullion, and gold equities have a lot of catching up (trending down sharply or steady in many cases) to do. Short term is anyone’s guess – but medium/long term the odds are in our favour, I believe.
