why would You join the bandwagon by your own admission if the POG broke out to the upside?
The term is known as wealth preservation.
I'm a realist, not a fool. Nor am I one who possesses a religious fervor for gold like many of the folks here.
No matter what I say you continue to try to find my "angle". It ain't there, Rarebird. It just ain't there.
What I want to know is whether gold is worth buying now or whether there are other mechanisms that may impact its price. I like the debate, and I want to hear why goldbugs have such a love affair with a shiny yellow metal, and wish to make it a medium for exchange.
No, I may not like the concept of a short squeeze of the type Bill Murphy is proposing due to the severe economic repercussions it could inflict. But neither do I fault long-term gold holders for being upset, if the alledged manipulations have taken place. I don't have a problem with gold returning to earlier values over the course of several years as the system can compensate..
But we've all been in equity positions where we've seen its net worth decline to what we considered undervalued levels. Hell, look at the small cap stocks. If you folks think you have reason to B&M, forget it. The Russell 2000 has drastically underperformed the S&P and the Nifty Fifty sectors for almost 4 years now.
This system of huge mutual funds we've allowed to be created has reduced liquidity in these small stocks to minimal levels due to the thin floats and lack of analyst following from the brokers.
Yet the small business sector is the main employer for the US. They are the fires of entrepreneurialship. However, they have constantly lanquished for recognition, non-dilutive financing, and analyst support.
Small Cap stocks have been in the mother of bear markets and that is going to have far more drastic impacts on the future of the US economy than whether or not large amounts of gold are mined.
But as I've said before, I'm a pragmatist. I see a case for gold based upon present investor psychology, but then again, neither do I dream about gold tripling in price.
My participation in the gold market would merely be a prudent financial move since a major run-up in gold will negatively impact the US dollar and thus the US and global economy.
Regards,
Ron |
