No sense wasting your breath DD. A lot of people on this thread figure there is a huge conspiracy to lower the price of gold. Who really gives a damn. Gold is just another metal that we mine. It has lost its past for now, in the modern world. Of course the uneducated, overpopulated, less industrialized areas of the globe continue to buy huge amounts of the metal for adornment and security. Will they crush the horrible shorters, producers and CBs, the Hannibal Lectors of Gold?
In the meantime should we buy the metal itself, or buy suppliers that refuse to look for cheaper sources of supply, refuse to modernize, refuse to hedge and refuse to admit that gold is a commodity and is no more important than most other metals? Or should we buy producers that recognize what is going on, and act accordingly? Keep in mind, those producers have management share incentive programs that reward their executives for share price and earnings improvements, even as they continue to forward sell the metal and improve profitability.
Or should we blame the CB's, the producers, the politicians, anyone but ourselves for our poor investment decisions? In 1982 I was hearing the same crap. Gold is going to $1000. Right. Then a crapload of cheap new supply came to drop the price,...and new exploration technologies were refined, and more and more previously hidden deposits of gold were found. This trend continues.
Only the lowest cost producers will survive. Buy accordingly. Just a thought folks. I could be wrong. Just how much gold is in the ground? Place your bets!
:-)))) russett |
