Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG 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.

Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: LoneClone who wrote (11422)	11/13/2009 12:25:58 AM
From: TrueScouse	Read Replies (2) of 48092

LC: This is an excellent article by Saville. Thanks for posting it, because I "lost" it on the Net after printing it out a few days ago. A few extracts that really hit home to me... <<Analysing the gold market as if new mine supply dominated the supply side of the equation would be like analysing the dollar market as if the only dollars that really mattered were the new dollars that came into existence over the past year.>>... <<...changes in investment demand (changes in the demand for the total aboveground stock) are more than 40-times more important to gold's price trend than changes in mine supply. To put it another way, a 0.25% (one quarter of one percent) change in investment demand is more important than a 10% change in mine supply.>>... <<...changes in annual mine supply are tiny in relation to the overall market. The LBMA reports that an average of around 20M ounces (650 tonnes) of physical gold changes hands on the London gold market every day. This means that the equivalent of more than one year's mine supply changes hands in the space of only four average trading days on the London market.>> <<...If changes in mine supply are irrelevant, then what is relevant?... almost regardless of anything else, gold's current bull market will continue until the current equity bear market reaches its conclusion, which, based on historical evidence, won't happen until after the average P/E ratio has dropped to single digits and the average dividend yield has moved above 5%.>> I'm still waiting to see a DOW/POG ratio of 1 or 2 before I believe that the PM Bull is over and I cash in all my chips. 5,000 on the DOW and $5,000 gold would do it for me -- as would 8,000 and $8,000. I'm not picky. :^) Either way, I think it's got a few years to go. Best regards, Howy

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next