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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (32551)	2/11/2007 8:55:32 AM
From: que seria	Read Replies (1) \| Respond to of 78424

Koan: I think that piece by Jim Willie is essentially correct but I wouldn't bet on the timing of the US$, gold and oil re-adjustment. Writers have been making similar points for just about all the 25 years I've been following gold stocks. I agree with JW that the U.S. Ponzi finance scheme is closer to critical mass now than before--debt way up, productive capacity way down, debt finance and value of dollar dependent upon self-interest of competitors, resources tighter, citizens accustomed to gov't as national nanny, and competing nations collectively much stronger. But experience says U.S. Ponzi finance and a Goldilocks economy (with gov't adjustments that are "just right") can continue for a long time. I don't see, in anything Jim Willie or most others write, any near-term catalyst for a tanking of the U.S. $, no matter how unpromising its future. I long ago stopped subscribing to newsletters and even reading most free ones because writers so often mistook the inevitable for the imminent. I just go with precious and some BM explorers and figure that I win for as long as the U.S. $ and economic system is stable, or I have comparative value in the PM stockholdings if it falls apart. Gold is the ultimate store of value but if the USD collapses, the biggest thief in the U.S. will be the one with a legal monopoly on force. Gov't will just confiscate the people's gold--again! It's "in Canada I trust" for my "paper gold," in the sense that I hold Canadian stocks in a U.S. account (and would hold them in a Canadian account if I could!). Canadian gov't might confiscate physical gold but that seems far less likely than the U.S. doing so. Confiscation of physical could have a big negative spillover effect upon share prices, since companies' production would have to be part of the confiscation. I don't expect that even the U.S. will presume to confiscate or ban U.S. owners' foreign stocks just because the companies are in the gold exploration or mining business.