Hi Marski, I expected a little bit of a bounce of 1.1c, but...

Hi Marski,

I expected a little bit of a bounce of 1.1c, but didnt think it would quite get to 1.6c.

I don't see 1.1c as being the final low for SDL. I see it only as a new low, and I can see it dropping down to around .9c at some stage as its final low.

The thing that concerns me the most, is the Dow Jones chart. If you take a look at it, you will see that the current peak makes the GFC peak look like a walk in the park. Anyone looking at the chart, would have to think that the US economy is going very strongly, but in reality, I don't think that is the case at all.

Now whilst gold can be seen as protection against a stockmarket crash, when markets crash, people don't behave rationally. They sell out of whatever they can, whether it is to cover margin loans, or just to get their hands on the cash.