SOTB,
I can accept your position.
Gold may not be done just yet....
I believe the long term potential of gold, in light of the very real possibility of a massive dollar decline, and that historical precedent of gold as a safe haven and fiat alternative, make it an attractive risk.
I agree that other metals may outperform gold. Other metals, especially those where industrial use is primary, might suffer great declines if we get global deflation. Gold might do ok.
I've built a core position of bullion and only trade 5-10% of that at peaks. I'm quick to sell my miners and when I do it is usually 100% of my holdings. Miners are to trade and bullion is to hold and protect.
I also agree with your general thoughts regarding sentiment, but I would argue that we are not yet to level of broad public awareness of gold. This sentiment that you are measuring could only be from the small global group that is early to gold. We may of course have a very different perspective on which stage gold is at in it's bull run.
I should add that I'm not a bug, although I don't mind that label. I started buying bullion in 03, and had never owned an ounce ever before. I saw no need, but now I do. And when an alternative "investment" (for bullion is maybe less an investment and more of a pure hedge against a decline in purchasing power), is known to me, it is possible I could elect to sell all my bullion and mining stocks and never look back.
I'm a fair-weather goldbug, but I see clouds ahead and a gold umbrella is required.
GT
TH |
