Art B re: "As for gold as an investment, it retains its luster only when other forms of investment are near total collapse. I do not think the U.S. economic system is so far gone that the only safe investment is gold. "
...Art; old platitudes sound good... and this is the "spin" that the Street is trying to sell Mr. & Mrs. Main St on here...that being that gold "has not moved", "it's lost it's luster" and that "it has no industrial demand, jewelry is trivial and it isn't money etc"
Art; please answer one very simple direct question:
If Gold - "only retains it's luster when other forms of investment are near total collapse" - how do you explain the cold harsh reality of this 52 week chart (VBG)?
siliconinvestor.com
Unhedged Gold Stocks/HUI +69 % !!!!
Major & Integrated Oil/XOI - 10%
DOW - 9%
Natural Gas E&P index/XNG - 12%
S&P 500 - 30%
Oil Service & Drillers/OSX - 49% (OUCH ~)
Nasdq - 57%
And where were the "other" safe investments, out of curiosity ?
Art; how do you as a professional money manager; with a self professed, longterm buy & hold approach; look your clients in the face & explain the above returns ?
...I think we can smile like the proverbial Cheshire Cat here witht he return on "some of our HOT STOCKS that we've talked about here on this thread"... and Art - they did pretty damn well.
How do you explain to them that they can NO LONGER retire next year, but instead; need to work another 5-7 years to make up the portfolio decimation they just suffered by buying into that stereotypical BS - that "Gold/Gold stocks" have not, or will not, or will no longer serve as a "Safe Haven" alternative ?
... Art; they (Gold stocks) did ! - and they did to the tune of an inverse proportional upside return of nearly 70% ! - to the antithesis of the Tech-mania stocks of the Nasdq.
If the + 70% return over the last 52 weeks for unhedged gold stocks - into this complete and total market meltdown; of which nearly 99.99999% of ALL professional Money Mangers & Analysts on Wall St (including yourself, in all due respect) - blew the call on..... did not "retain its luster" - what would you call that + 70% move (VBG) ?
EXACTLY this time last year was when "some of us" begain talking about making a "portfolio weighted" rotation - "out of Black Gold and into Yellow Gold" ...and then we didnt just take the money & run from the Nat Gas Story at the end of Dec ... we said to start shorting the "Gas Story"... then later this spring after the Trading Range game of the OSX ended off it's traditional March to May Rally that we also spoke about being an exit opp from trading positions; "some of us" called for a complete exit from the oilpatch on that end of May/beginning of June inventory ramp into a rapidly deteriorating global economy (keyword there being "Global").
.... our calls to exit Black Gold & rotate to Yellow gold; along with our take the money & run/short the Nat Gas story, to exit the seasonal trading range run on the OSX and the final exit call due to simultaneous supply ramps & a rapidly deaccelerating GLOBAL economy - were ALL met with complete & total chastisement from the vast majority on these threads here... and look what those numbers bore out !
...REALITY, like life; is often a bitch ~
Gold is, was and will continue to be a "Safe Haven" and the obvious market (ESF/PPT) intervention/stabilization/manipulation, can no longer even be termed a "conspiracy theory" with a straight face; as the Fed & the Market is beating gold down to allow for an orderly descent as possible from this bubble collapse.
That article that Iso posted about the similarities to Japan's market collapse and the propping up of the markets & certain sectors is ominous indeed for what we are beginning to see here in the US market... history is unfolding before our eye's here... and the ending isn't going to be pretty for millions of American's... |
