<<Today is a perfect example of what I warned about on Tuesday: a little bad news helps gold stocks but too much can actually make them act just like other stocks. Dow drops 400, gold bullion goes up $7, and gold stocks (on average) do nothing. Did not surprise me at all.>>
IMO most of the gold stocks who don't produce solid earnings should go down with the DOW. It would be very naive to count on another BUBBLE just because gold goes to 360 or 380. There is too much of fresh memories of scams in both tech. and gold few years back. Contrary to my opinion might be the fact of compulsive gambling and a strong will of the people who lost 80% in the market to risk everything what is left trying to make up the losses, but the safe bet is gold in pure form as we'll soon observe real estate and currencies (not the dollar only) to burst out. Gold will be safe in the case of deflation, and excellent investment in hyperinflation. If deflation happen will be only in governments statistics, not real one. The real inflation is with us at rate of about 8 to 10% p.a. for past 6 years, just look at your bills like insurance, health costs, schooling, property taxes, utilities, cost of rent if don't own the house, all kinds of free stuff for which you pay now. Over 20% of people are smokers why these hikes which went up over 200% in last few years are not counted and please nobody try to convince me that I should stop. During 25 years of smoking 2 packs a day I paid enough taxes to have the best bed in hospital where I can die with the cigarette in my mouth. |
