I think we are on the verge of the great disconnect; just like 1930.
It was the sovereign debt defaults of the 1930's that made the Great Depression "Great", not the stock market crash of 1929. The stock market crash is just the first overt signal that the great credit expansion of the time has ended. This happenned for us in August 2007 and was signalled by the crash of 2008/9. Now losses have been transferred from banks to taxpayers, the next Act is sovereign defaults. We are on the cusp now.
Gold shares were initially taken down in the 1929 crash too, but after the fake liquidity rally of 1930, the next hard down leg saw the goldies "disconnect" from the market as fear gripped the bond markets. We are there again, but this time the gold price is not fixed (although managed).
A short term danger for gold stocks is a windfall tax (such as Krudd's), but that threat will be quickly forgotten as the gold will be required to reliquify the world after the collapse of the world monetary system. There will be a panic to get it above ground and vaulted. Everything that can be done, will be done to facilitate this.
This is normal. The monetary sytem collapses in the Kondratieff Winter. US will lose its reserve currency status, just like England did. China will collapse in depression, but will emerge first as the new economic super-power - the right of the largest creditor going into the crisis.
I am expecting a take-down in gold to fake a double-top. I think they will only be able to get it down to about $US1140, but that will probably be enough to shake out the weak hands (with Pretcher's help no doubt screaming double-top). One day he will be right about gold, but I don't think that will be before 2016 and possibly not until 2020...
Oh crap, that was just a smudge on the crystal ball. Disregard all of the above.
