Before I speak about the gold bugs, I would like to talk about another bug, the China Bugs. Or anti China Bugs. Yes, there are no winners here. But Trump thinks he can play a game of chicken and win. Each tariff increase is another cartridge loaded in the gun. What is scary is that it's a game of suicide. At this stage, the business community has pulled back from investing in new equipment. That's not so terrible, I hear, because the consumer makes up for 70% of economic growth in USA. But what happens when the business community starts laying off workers? Then the consumer will cut back spending. Then we have recession. Trump don't understand because he has China Bug, or anti-China Bug.
Now for the Gold Bugs. Most have gone bankrupt and have turned bitter. Gold Mining is a bad business. But in spite of itself, the shares have no choice but to rise when gold rallies since the shares were so low to begin with. I am no gold bug or anti- gold bug. I will short the shares when warranted and go long when the turn comes. It takes a strange set of circumstances to get mining shares to rally. But that's precisely the situation mining shares are involved in today, so they rise. It has been said that gold is a political metal, so let it be, as the Beatles would say. Do you think Trump has enough sense and humility to turn back or retreat? In an election year, I think not. Trump has bankrupted a few companies he has managed, he can certainly do the same with USA. I own Gold, Silver Bitcoin, Gold and Silver Junior mining shares. I am playing suicide too with my mining shares, but in contrast to Mr. Trump and the devout Bulls, I am well aware of the hand I am playing. But keep in mind, every dog has its day before it slides back into oblivion. It is still early yet in the gold bull, early enough where most don't know what to make of the rise. That is to say, it seems hard to believe, unfathomable.
If the shares continue to rise, there will be plenty of new advocates. That's the way of the world, the way the investing world works.
Pride has a way of killing you since it narrows your vision and closes your perspective. I don't think Mr. Trump understands. But Gold understands and it's dragging the Miners up with it. |
