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Re: mortalmyth post# 3755

Wednesday, 02/12/2014 6:28:50 PM

Wednesday, February 12, 2014 6:28:50 PM

Post# of 5870
mortalmyth well, Smart Money Did It In the 1929 Crash and Aftermath?

history often repeat itself ex. -

During the same bear market period smart-money moved
from the plunging equity markets (i.e. financial assets)
to hard asset investments, like
Homestake Mining - which is used heretofore as a
surrogate for all gold stocks.
The stock price of this gold mining company soared
relentlessly upward during the entire bear market.

Homestake Mining stock rose continuously from $80
in October 1929 to $495 per share in December 1935 -
which represents a total return of
519% (excluding cash dividends) during
the devastating bear market period.


Contemplate and appreciate the monumental difference
in investment returns during a serious bear market.

Smart-money invested $10,000 in
Homestake Mining (hard assets) in late 1929 - which
increased in value to almost $62,000 by December 1935.


This represents a compound rate of return of 35% per year
in appreciation alone!

It is meaningful to note that in late 1929 the value of
Homestake Mining was about $80 per share.

Moreover, during the next six years Homestake Mining paid out
a total of $128 in cash dividends.

In fact the 1935 dividend alone reached $56 per share.


That's almost a 70% dividend yield payout (basis 1929)
in only one year!
Indeed, hard asset investments (gold mining shares) were
islands of economic refuge during the grueling years of
the Great Depression.

Unfortunately, those innocent souls who remained
invested in stocks - and had a buy and hold strategy -
saw their initial $10,000 investment slowly dwindle
to only $3,600 by late 1935.
This represented a devastating capital loss of
almost two-thirds of their investment savings.

T H A T'S R I G H T!
The hapless naive investor with a buy and hold strategy
in financial assets lost the greater part of his
original stake.
Pathetically, he could ill-afford to risk -
let alone lose - his precious capital during
the many long despairing years of
the Great Depression.

One does not have to be a Ph.D. in higher mathematics
to understand the 1929-1935 comparative
investment results stated below.

Investment
Vehicle Investment
Date Amount Investment
Value @ Dec. 1935
DJIA Oct - 1929 - $10,000 - $3,600
DJUA Oct - 1929 - $10,000 - $2,100
Homestake Mining - Oct - 1929 - $10,000 - $62,000


Note:
For simplification cash dividends not taken into account
It is a nightmarish thought for the Buy-N-Hold
advocates to take careful note that it took
the next 25 years for a 1929 investment to break even!
Not even Job of the Bible would have had
the patience to wait.

Note. all producers on the list have higher gold prod. cost than
Caledonia Mining's low prod. cost @ $554/oz -
or a dividend every quarter as Caledonia paying to
the shareholders -

Fyi. do a dd...for a low cost gold mines producer with
very low labour cost and taxes....

Caledonia Mining Corp. -
CALVF:NASDAQ - TSE:CAL - CMCL Aim London -





“Cash costs at the Gold mine are running
at $554/oz - one of the lowest cost -
gold producers in the world -

which positions the company well to keep
generating cash to self-fund expansion and
paying dividends every quarter to shareholders -

CAL has more than $25 million in cash in
Western London banks and NO DEBT -


http://www.commodity-tv.net/c/mid,21943,Mines_und_Money_London_2013/?v=252888

http://www.brrmedia.co.uk/event/119251/

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=95869580

CALVF employ more than 1000 happy miners -
who got 15% ownership in Blanket Gold Mines -
the miners work very good for they work
for them self -

ex...Zimland corp. taxes are 25% and its only
about half of US & Can bolshevistic 50% taxes +
Blanket Gold Mines have less than half of
the high labour cost in US & Can. -

CAL Blanket Gold Mines enjoy the kind best mining
weather and it has produced gold since 2000yrs back -


Kingdoms of Africa - Great Zimbabwe -



http://www.youtube.com/watch?v=AyKrTdv-t4E

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=96263045

The ruins of Great Zimbabwe – the capital of the Queen of Sheba -

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=67548731

Au-Kingdom -

E.g.,
http://whc.unesco.org/en/list/364/video

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=96354613

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=97133068


God Bless


My opinions are my own and and DD I post should be confirmed as unbiased

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