Art, I am one who does not believe that a currency meltdown is needed to push gold. A dollar boom has led to the decrease, combined with a lot of central bank and producer selling. Both of the sellers are now backing off due to low prices. This changes the supply/demand balance, IMHO. All the dollar has to do is remain stable to impact gold prices positively, in dollars. And, if you own South African producers, as I do, who sell in dollars but pay in Rands, the relationship looks very positive. Industrial use is increasing. Pcs still have positive unit growth, and as applications grow more complex, no matter how slowly, they require even more gold. And platinum.
Basically, I think the fair price for gold is about $380 right now, and that it has fallen too far because fund managers and central banks panicked.
BTW, I agree with you on phospate, but it is a fast-moving commodity. I have both made a lot of money and gotten whacked playing the stocks in this area in the past.
What are you using for your titanium play?
MB |
