These Companies Could Suffer Most From Impending Gold Bubble Collapse

Mon, 04/04/2011 - 10:00 EDT - Seeking Alpha

Osman Gulseven submits:It is undeniable. We are living in the age of gold-mania...History repeats itself. It was the tulip-mania in the 18th century. Stock-mania in the late 1920s. Gold-mania in early 1980s. Techno-mania in late 1990s. Now, we are back to gold-mania. It is indisputable that the price of gold has gone to insanely high levels in the last decade:

(Click chart to enlarge)Those who are still bullish claim that gold is a reliable store of value. They were once right. It was a reliable store of value during the gold-standard period. However, gold became a piece of paper, just like a share, traded in the stock market. SPDR Gold Trust (GLD) has aComplete Story »

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On the Value of Gold as Policy Insurance
Annaly Salvos submits: How to value gold is an age old frustration. As every schoolboy knows, it yields nothing and so can’t be valued on cash flows. It has very little industrial use. There is, however, a natural human tendency toward the use of currency so gold is an obvious candidate for a rare, durable, portable, and transferable form of money. There is no printing press (or helicopter) for gold.
Dow/Gold Ratio Remains Low On Historical Basis
By Kirk Lindstrom:As of the November 30, 2012 close of 7.59, the Dow-Gold Ratio is up 32.9% from its 21-year low of 5.71 set last year on August 22, 2011. The Dow-Gold Ratio is a measure of inflation and stock market sentiment. It shows how many ounces of gold it takes to buy the 30-stock Dow Jones Industrial Average.(click to enlarge) This next chart shows the DOW:GLD ratio.
Why The Current Bull Market In Gold Is Bigger Than The One In The 1970s
By Simit Patel:According to Dow Theory, secular bull markets have three phases: The first phase is marked by slow appreciation of insiders and professionals; the second phase is characterized by more rapid appreciation, mainstream media coverage, and an increase in mass market investors; and the final phase is characterized by a parabolic mania.
Gold ETF Performance And Outlook
By Christian Magoon:Gold ETF products tracking the price of physical gold declined 3% for the week as stronger economic data in the U.S., the attraction of stock market returns and the disappearance of QE3 hopes teamed up against gold. The price of gold has now dropped below its 200 day moving average, a key metric that has been a signal for investors over the last two years to purchase gold.
A Trading Opportunity In Gold And Gold Mining ETFs
By Vince Martin:Back in July I wrote a piece here on Seeking Alpha noting a 3-month divergence in the price of the SPDR Gold Trust ETF (GLD) and the two major gold miner funds, the Market Vector Gold Miners ETF (GDX) and the Market Vector Junior Gol
GLD Is Not Overdue to Buy 200 Tons of Gold: An ETF Lesson (Part II)
Kid Dynamite submits: oLet me start this post off by saying that I own the SPDR Gold Trust ETF (GLD) - but I don't care in the slightest if you choose not to. This is NOT a post trying to convince you to buy GLD instead of its competing instruments, or to tout the merits of gold investments.
2011 Performance Review Of Gold Miners
By Zvi Bar:Over the last two years, gold has appreciated to a far greater degree than have the gold miners, largely based upon a broad expectation that the price of gold could not sustain its momentum and price range. Though gold has come down from its summer high, gold has still dramatically outperformed the large miners over the recent past.
Recent Gold And Gold Miner Performance Comparisons Indicate Gold Continues To Outperform
By Zvi Bar:Over the last two years, gold has appreciated to a far greater degree than have the gold miners, largely based upon a broad expectation that the price of gold could non sustain its momentum and price range. Though gold has come down from its summer high, gold has still dramatically outperformed the large miners over the recent past.
Why Are Gold Miner ETFs Trailing GLD So Badly?
Vince Martin submits:[Click all to enlarge]
Gold Silver Price Ratio Near Multi Decade Lows
Kirk Lindstrom submits:The gold-to-silver price ratio, defined as the price of an ounce of gold divided by the price of an ounce of silver, closed Wednesday at 45.16 This means an ounce of gold is just over forty five times more expensive than an ounce of silver. As my chart below shows, twenty years ago in 1991, gold was over 100 times more expensive than silver. Since then, the gold-to-silver price ratio never went below 41.51.

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These Companies Could Suffer Most From Impending Gold Bubble Collapse

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