SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Precious and Base Metal Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Canuck Dave who wrote (7109)1/28/2003 3:41:59 PM
From: BSGrinder  Read Replies (2) of 39344
 
What is Bush going to say or do that is going to make holders of physical gold want to trade it for dollars? I think the action in the POG is incredibly strong - every down-draft is met within hours by heavy buying. Why do the gold stocks have to match every daily gyration of the POG? The ownership is completely different. The daily up and down motion is just noise. And Jim Sinclair has made a good case that the hedge funds are matching gold purchases with shorting of gold stocks, putting a little further pressure on the stocks. But he also thinks their dump-gold-on-war, cover-shorts ploy won't work.

Speaking of a war premium, why do we assume gold will lose its premium when the war starts? The war premium should only disappear if becomes clear there will be no war, or if the war is over. Sure, stocks may soar when the bombs drop - Americans will try to support their stock market in times of crisis, but that doesn't mean foreigners will rush to buy dollars with their gold. They will want gold even more if there is a serious military confrontation between America and the Islamic world.

I really like what's going on here in gold. The gold price is still way too low to reflect the crashing dollar and the looming currency crisis. Gold stocks are still a ridiculously cheap call on the future gold price. I'm not selling here.

/Kit
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News