Bill,
I really appreciate you compliments.
You are one of the few people out here that has been able to make a convincing case for holding gold stocks (which probably wouldn't be confiscated like the metal itself.... :0)
Every since you mentioned the dollar devaluation rumour, I have been dwelling over diverting some of the portfolio into gold or silver stocks. However, I must admit, while I watch the XAU and Homestake, I really wouldn't be able to tell you who are the lowest-cost producers of gold.
If you or someone could point me in the right direction I would appreciate it. However, no juniors please, unless they are producing now, are located in the Americas, preferably US or Canada, and have some substantial reserves. Let's not forget that in a gold surge, overseas mining companies become targets for nationalization by cash starved gov'ts.
But Bill, as I stated before, I don't blame goldbugs for perhaps seeing their investments go down. And I can see why you all are lusting for "revenge".
However, from my perspective, the attention people pay to Gold as being worth $400 or even $800 an ounce is little different than saying that AMZN, with its market capitalization rivaling the GDP of Norway and most other countries, is worth every penny.
You claim that short-sellers have devastated the value of the gold market. But is it not possible that short-sellers, realizing that gold has no intrinsic value except for industry and jewelry, consider you love of the metal a folly or mania as inane (insane?) as the valuation of these web portals who think that advertising will pay all of their bills and justify there lofty valuations??
You think gold has value based upon an outdated and flawed conviction going back thousands of years. But gold, like any other commodity, is worth only what people are willing to pay for it. The reason they have paid exhorbinant prices for gold in the past is based primarily on this fallacious perception that gold has more value than paper, or is somehow, more sound.
The minute people stop believing gold has value is the moment that maybe gold will trade based upon its industrial supply and demand equation.
Btw, I noted a seeming conflict with how you have stated gold is now in "strong hands" and won't go lower, and your statement:
"Yet, markets are markets. Reasonable people that got involved in the gold industry have been punished beyond belief. Worse than 1929 experiences. And who cares. NO ONE. If the precious metals prices do not rise soon and swiftly, which I see coming very clearly, they will be tapioca".
Are you saying that should gold go lower, that there will be a panic?
Personally, the Fed may not want to force gold too much lower from here. Just enough to permit their carry-trades to cover.
Thanks you once again for your kind compliments.
But again, I thank you, as well as others, for educating me on the finer points of the gold/fiat currency equation.
Regards,
Ron |
