Jim, Excellent link... I do believe that he's right when he says that the general public has forgotten about gold, due to the exceptional rises in the major N.A. markets...
Public right now, including us, is more interested in making a couple of bucks playing various stock plays...
This has been the longest running bull market in history...
As profits soar, the incomes will follow and so will the spending and investing...
Once they start signing those new union contracts that are coming up and start feeling more secure in their jobs, they will spend...
Once they start spending on the big ticket items, they will have to borrow money... Once they start spending it and demand begins to increase, so will the prices...Followed by inflation...Followed by higher lending costs...Followed by inflation...
Once inflation starts rolling so will the gold price...
I'm starting to see higher real estate values in Ontario right now... I know this 'cause I've already flipped two recreational properties this fall at higher prices than those of last year...and that's only me...
I have buddy's in Toronto that indicate to me that real estate prices are climbing steadily as the supply decreases...
Everybody is starting to hold out for more...
IMHO, its right around the corner (6 months to 1 year)...
I'm also starting to see record profits by Canadian lending institutions... Guarnteed they are startin' to dole it out big time... Otherwise how could they make all these profits...
I might add that if the CB's and govenments have shorted gold in the hopes of buying it back at much lower levels and the price of gold continues to drop,,,so will the supply... Producing mines will not continue to produce if they are loosing money... A lot of these outfits have to forward sell their production to stay in business... I'm almost positive they would not continue to be foolish enough to sell at a much lower price than it costs to produce...
Personally I hope that the price stays down here or goes lower... I guarantee there will be a hell of a lot more shutdowns than are already planned...
Once that happens, there is no more gold to sell. What's going to happen if the CB's and government can't buy at these prices to cover their so called "loaned out gold"...
In retrospect, I wouldn't be surprised if some of these high cost producers that have money in the bank start buying some of this gold in the open market... If it cost you 320 to produce, wouldn't it be wiser to go and buy some on the street...
Take it from there boy's...
...ed |
