Dollar Stomps Euro

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Flight to “safety” continues, gold/miners diverge

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2 Comments for “Dollar Stomps Euro”

  1. Dirk Burhans
    avatar

    Hello,
    Both Ross & Bob mentioned Homestake Mining this week, and I like the way Ross has interpolated Homestake data as a continuation of pre-$XAU data.

    I have seen analysts tout Homestake’s example since the 2008 panic and my question is: is Homestake the only gold miner from the 1930s? Were there not other miners who benefited from the post-bubble deflation? Or were other gold miners from the period flat or down? How do we know that Homestake was not an aberration?

    I would love to see some perspective added so that readers/listeners can understand why Homestake is a good model for behavior of miners in the current situation. Surely there must have been gold miners other than Homestake who benefited from the 1930s economic conditions… if not, then Homestake could be an anomaly who’s trajectory we should view with caution (I hope not, but it’s possible!).

    In the meantime… Bob, Ross, Danielle, and David Smith have become my weekly companions; I so look forward to hearing them each week!

    Thank you,
    Dirk Burhans

  2. Dome Mines was the most representative gold mining stock in the 1930′s. I
    have attached a chart of Dome through 1938 then spliced to the Barron’s Gold
    Mining Index.
    chart

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