by Hubert Moolman
Gold stocks are often cited as recession proof stocks. Although this has not always been true, they do tend to rise when the economy is in a recessions and/or when the general stock market is in decline or showing relatively little gains.
Below, is a long-term chart of the Dow:
[…] I have indicated significant gold stocks rallies with blue rectangles. As you can see that they mostly occur around Dow/Gold ratio peaks and Major Dow peaks.
In fact, the best nominal gold stocks rallies have been after Major Dow peaks (1929 and 1973). This is not really surprising, since many of the factors that drive gold stocks rallies are bad for general stocks.