It is as absolute as the time and tides.A good Gold Report interview with Bob Moriarty:
TGR: If we do indeed have this blowup of the derivatives markets, doesn't the stock market crash with it?
BM: Sure. Of course, it does. You keep saying "if," but it's not a question of "if"—it's a question of "when." In the 1930s, the stock markets closed for six months or a year; no big deal. The reason you own gold and silver and the reason you've been very conservative in your debt obligations is because very bad things can happen. In 2001 you couldn't go to the bank for a year in Argentina. I think they'd give you 1% of what you had on deposit. That's going to happen again.
TGR: As you noted not long ago on your website, gold shares are historically cheap. They're basically where they were in 2001–2002; yet gold itself has gone up five- or six-fold. Why haven't gold stocks gone up with the general market when many stocks are trading at historical highs now?
BM: I have followed a ratio, and you can plot it very easily by filling it in one of the charting programs; the ratio of gold stocks to gold. That's the XAU or the HUI over gold. There used to be a band and anytime it got out of the band on the top, you had a top in gold and silver; any time it got to the lower band, you had a bottom in gold and silver. The interesting thing is that it was only a measure of psychology. It wasn't a pure measure of gold or gold stocks; it was a measure of gold compared to gold stocks. When people are very, very optimistic, they buy gold stocks, and when they are very pessimistic, they sell gold stocks.
Well, that ratio broke down in September 2008, and we are lower now than we have ever been at any period where people traded gold stocks and gold. We have been there for a year, and I think I know why. All these hedge funds that were borrowing money because of derivatives poured tens of billions of dollars into every fleabag junior resource stock in the universe and were forced to sell because of deleveraging in 2008. That money has not come back into the market, but there are some extraordinary companies.
TGR: So, you still consider resources a slam-dunk.
BM: Once you've got some cash in hand and some gold or some silver bars under the bed, and you have six months' necessary resources available, you've got to put your money into something. And the resource stocks are just so cheap now; as cheap as in 2001 in terms of historic ratios. In 2001, we had $4 silver in November and $250 gold all summer. Now we have $1,150 gold, and I'd think that there would be a major gold rush.
TGR: Any final thoughts you'd like to wrap up with?
BM: We're going through some interesting times, and it's going to get more interesting. People tend to look at guys like me and Peter Schiff, and Gerald Salenti and Ron Paul as Cassandras, always predicting disaster. But they forget Cassandra was always right, too. So I will reiterate. You talk about "if" we have financial collapse. I talk about "when" because no other alternative possible. Nobody and nothing is going to stop it from happening. It is as absolute as the time and tides.
Full interview:
https://news.goldseek.com/GoldSeek/1273087774.php
I have sold all my other gold companies over the last two weeks, without the fear of not being able to get back in, except for ATAC, for I feel that there are too many sound fundamentals to ignore in this play. Sure it’s getting hit like most others but I feel that this one could all of a sudden go the other way in a hurry and there is no way I’m going to risk ATAC turning into a story of “the big one that got away”.
Market glitch – ya right!How many stop losses where triggered from the created panic?The rigged markets are continuing to erode the confidence of investors as the schemes to control these markets in any direction continue with malice.Will resource stocks rebound as soon as Monday or will the continuations to fleece the people of their holdings - no matter how fundamentally sound they are? One thing is for sure!There’s no way I would put a stop loss on ATAC.
GLTA!