Central Gold-Trust (NYSEMKT:GTU)

CAPS Rating: 2 out of 5

The Company is an investment holding entity created to invest of its assets in gold bullion, with the primary investment objective of achieving long-term appreciation in the value of its gold holdings.


Player Avatar Paramnesia1930 (29.00) Submitted: 7/31/2009 7:19:18 PM : Underperform Start Price: $38.21 GTU Score: +104.50

The 1929-1930 equity rally (coming out of The Great Depression) lasted 147 days and the market was up 46%. It has been the same amount of time since the March, 2009 low and we are up about the same percentage. It’s déjà vu (paramnesia), so prepare for a drop of about the same percentage (85%).

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Member Avatar reflector (< 20) Submitted: 9/9/2011 4:10:01 AM
Recs: 0

you seem to be trying to draw a conclusion that cannot be drawn here.

your logic sounds like, the market as a whole will suffer a large % loss, therefore GTU will lose value as well.

while i agree that there is a very good chance of major losses in equities on the whole on the near term, i would submit that the general trend will not apply to GTU.

GTU is a gold bullion holding company, its value will rise and fall as the price of gold does, it is not anchored to the movement of the economy.

in fact, as the economy worsens and federal debt in this country increases, the gold price will rise and people will continue to flee treasuries and equities and look for a safe harbor where to keep their money.
that will mean rising gold, and silver, and some other commodities.
GTU will only go up as the economy worsens.

Member Avatar Loerke (92.14) Submitted: 8/7/2012 10:13:18 AM
Recs: 0

reflector: you do know that the most prominent trend during the Great Depression was deflation, right? Not good for gold.

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