long, I wonder if gold investors are working against themselves, in a catch-22. In the last few days I have replied to people asking the question of what's the better investment, gold, or gold stocks. I have always answered gold stocks because of the leverage, but that advice may be an error. Buying gold stocks only isn't any better than ABX doing options. We also need to increase gold demand to see real improvement in POG, to realize the leverage. Maybe gold bulls should also be buying the metal in addition to the stocks to help kick start demand?
People today mostly invest in things going up, not stagnate investments. Some interest brings more interest, more interest forces short covering, short covering brings momentum, momentum brings the analysts recommendations, recommendations bring in the masses. Maybe a portion of any gold stock investment should also be an investment in the physical metal? Maybe some investment in a metal fund that doesn't lend the metal? Does anyone know if CEF lends out its metal? |
