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Skol

32,983 Posts.

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06/05/16

15:34

Post #: 17697466
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Originally posted by petg ↑

What Did Smart Money Do In the 1929 Crash and Aftermath?

During the same bear market period smart-money moved from the plunging equity markets (i.e. financial assets) to hard asset investments, like Homestake Mining (gold) - which is used heretofore as a surrogate for all gold stocks.
The stock price of this gold mining company soared relentlessly upward during the entire bear market. Homestake Mining stock rose continuously from $80 in October 1929 to $495 per share in December 1935 - which represents a total return of 519% (excluding cash dividends) during the devastating bear market period.

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You mean the smart people all owned Homestake? What about the rest of the gold sector?

Actually the smart people owned bonds as interest rates fell.

And why did Homestake go up while gold stayed the same price?

Last edited by Skol: 06/05/16
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0 Great analysis

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