- The S&P Gold is a hybrid gold index that contains major producers since the early 1920’s.
- The rally from 1960-1968 occurred for two reasons. First, the gold stocks participated in the secular bull market of 1942-1968. Also, eventhough the price of gold is officially fixed, it does not mean that the “fix” can be maintained. Gold shares can act as proxy for freely traded gold. For example, the gold shares rallied sharply from 1925 to 1938 when the price of gold was officially at $20/oz up to 1934, then then $35/oz aftwards. The rally in the gold shares represented strain in the official fix, a black market proxy for the true price of gold during a period of currency devaluation. Similiar strains began to develop as the economic strains intensified into 1968. This was revealed by an acceleration of the gold shares trend in the late 60's.
*S&P Gold from 1945, Barron's Gold Stock Index from 1939-1945, 1922-1939 Homestake Mining:
Hi Eric:
I am a long time reader and fan of Jim Sinclair and his site. As such the same goes for my admiration of you and your work.
A short while ago I e-mailed Jim a private mail and included my chart work in Excel format on the BGMI (Barron’s Gold Mining Index). I have attached this file to this e-mail for you but it is nowhere as professional and clean as your work, and you will have to look at the top and to the right of the data for my 2 charts, should you be curious enough to look. A few days to a couple of weeks later you showed on his site your HM/BGMI/S&P gold index compilation, a super chart with a fantastic lower LT trend line. Two questions:
1) What is the “S&P gold index”?? and how did you get it going back so far?
2) Do you have any idea of why/how the BGMI and the S&P Gold index rallied so hard from 1960 to 1968 with the price of gold fixed worldwide by Breton Woods at US$ 35.00 an ounce?
Many thanks for your answers if you can find a minute.
All the best
David
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