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

To: Claude Cormier who wrote (54349)	12/18/2007 1:57:04 AM
From: Bat Man	Respond to of 78419

Thks claude, The way my gold/silver pf is going I'll, soon end up well past 10-15% , and that is without buying any more gold/silver bullion, and I still think I have some very good CO's in my PF. Wonder when the junior takeovers will start in ernest? like '95, 96. ideas?

To: Claude Cormier who wrote (54349)	12/18/2007 2:32:15 AM
From: Proud Deplorable	Respond to of 78419

Better make it 50%.... "Gold I don't normally look at fundamentals in these Gold Market updates, but it is worth stopping for a moment to consider the implications of the latest stroke of genius announced last week by the Fed in its desperate attempts to prevent a credit crunch, as it has important implications for the price of gold. Like a magician pulling a rabbit out of a hat, the Fed and foreign central banks announced that they will conjure up $50 billion to inject into the system, which they will generate by selling low interest rate loans for those who like throwing good money after bad, or have no choice but to. The point to grasp though is this - the Fed will ultimately be liable for these loans - and we all know what the Fed does when it needs money, with a few simple keystrokes it creates it out of thin air - so why stop at a paltry $50 billion, which with respect to the liquidity problem is like approaching a guy who has just had his arm chopped off and is gushing blood all over the place with a drugstore plaster for a minor cut - why not really get serious and create $100 billion, a trillion, or, inspired by early 20's Weimar Germany, ten or a hundred trillion? While it only takes a few keystrokes to create endless trillions, so that the guys at the Fed can lay down in a sea of money and make whooping noises as they throw handfuls of it into the air, in the real world outside the perimeter fence, there is, as ever, a finite supply of goods and services that this money, so easily created, is going to end up chasing and competing for. So the result of this endlessly expanding creation of liquidity must be more and more inflation - if they succeed in staving off a credit crunch and deflationary implosion, that is, and because a deflationary implosion would be catastrophic, they MUST succeed. So you see how they have finally painted themselves into a corner where they have to continue to ramp the money supply exponentially, a "catch 22" situation which could easily runaway into hyperinflation. Once you understand this, you will immediately realize why they stopped reporting the M3 money supply figures several years ago, which have since gone off the scale. The only caveat to all of this is the possibility that they actually want to see a credit crunch and deflationary implosion, for reasons set out in the No Way Back article last week. So, faced with accelerating inflation what do investors do to preserve their wealth? They do what they did in the 70's, buy tangibles - hard assets, gold and silver, paintings, coins, stamps etc - anything with a scarcity value which those desperate to get out of cash will flock to buy. Last week's announcement by the Fed of another liquidity boost was just another staging post on the road to hyperinflation and has provided yet another reason to buy gold, as if there aren't enough already.................. ..................and therefore any short-term dip will be viewed as a buying opportunity. The situation is of course rather different with Precious Metals stocks, which are subject to the vagaries of the stockmarket." 321gold.com