The Epic American Credit and Bond Bubble Laboratory Message Board

STOCKTALK

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.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Perspective who wrote (87580)	10/11/2007 4:02:27 PM
From: Horgad	Read Replies (1) of 110194

For the most part the RAND gold price has been doing just fine. It is not making new highs at the moment, but it is right near the highs. However the inflation in the SA miners expenses just seems to be keeping one step ahead of the increases in the gold price. Part of it I'm sure has to do with having to mine more expensive reserves, but a lot of it is just general inflation in energy costs and wages. As for the non SA miners, I wonder how many them are actually benefiting from the rising gold price and inflation. Could it be that a lot of this move is just a knee jerk reaction to the POG rise and not based on earnings fundamentals? I know that I for one have been suckered before with earnings potentials based on POG that don't factor in inflation related increases in expenses. As such, I've thought for a while that maybe a better way to go might be to hold all physical gold and not buy the miners unless there is a stock market crash followed by a deflationary environment. But for now I'm trying to learn to be quicker trading in and out of the gold miners and have been gradually shifting holdings away from the SA miners.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next