It seems to be a common assumption among precious metals investors that
the equities (GDX, HUI, GDXJ, XAU) always lead gold price. These charts
of the previous mania illustrate that this assumption is not always correct.
You can see below that the stock of Homestake mining and DRD gold did not take off
until the gold mania went into overdrive in 1979-1980. In early 1979 Drooy was
actually DOWN as much as 80% from 1975. The equities did catch up with the metal
in 1979, and then some.
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