Gold too can be easily transmitted electronically, in infinitely divisible form, once you have a system set up to do so ... and there is such a system - goldcurrencies.ca
In the third paragraph of your more recent post you have it - shares are the way to go, shares of companies who produce and in so producing enhance shareholder value ... few goldbugs trade or hold bullion, i certainly don't, the speculative opportunities are far greater in the companies who produce it imho, and well beyond that in the successful ones who explore for it
The leverage can be massive - suppose a company has a deposit with cash costs/oz of 160, all-up costs of 250, and gold is trading for 275 ... their profit is 25/oz .... now gold goes to 325, only increases a few per cent, but that company's profit triples, the market is likely to reward them with a tripled market cap as well, and in actual practise greater than that, because when gold goes to 325 the perception will be that 325 is but a waystop on the route to 350 and beyond, there is major flywheel effect [which has worked to knock them down severely during the 5-yr gold bear, works both ways] ... add to this the fact that most deposits have what we call 'blue sky', i.e. undefined edges, into which drills can be poked to prove up further reserves
All the gold stocks on the planet don't have together the market cap of qcom ... fourty billions US, am i right ... hoo-boy |
