RE:Lurking behind the corner I believe we'll see.....goldopportunity wrote: So, in essence, we have a situation where gold, which does not have any debt attached to it, is moving inversely to meteoric-rising debt-ladden fiat instruments.
Alternatively we have a situation where gold, which is an "unproductive asset", moving inversely to assets which bear interest, dividend yields, coupons, etc. Which is exactly what smart money has been doing since the dawn of capitalism.
When fear last sent gold to all time highs the 20 year bear market that followed saw gold trading in a 40-60% range of the all time high and it took a few years to find this level. Today that would be $800-$1200 and it may be we will not see gold above $1200 again, at least until the next global crisis.
If you MUST invest in gold companies then look for those that recognise the bear market by hedging, by drastically cutting costs and by selling or shelving any project which is uneconomic at $800 POG. There is much more pain for the gold market to come.