Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: stan_hughes who wrote (6274)	4/17/2008 9:52:56 AM
From: Real Man	Read Replies (1) \| Respond to of 71475

You are certainly right. Pt and Pd don't take much space either, and production problems in SA are expected to last. -g- That said, CBs are also the largest hoarders of gold, and not all CBs are selling - Spain, China, Russia are buying. If you were to hold $1 Trillion of reserves in USD, and gold price was soaring 30-50% a year, while your reserves were dwindling... what would you buy? There is no mania like gold mania, and we haven't seen gold mania yet. It's a bull market, with sharp downs, still fairly early in the game... The good thing about physical gold - it's money (because of it's size) - and it's nobody's debt, unlike currencies. Most certainly, the ultimate safety from derivative chit hitting da fan. The same cannot be said about gold stocks, unfortunately. This is paper, even though it's painted with gold. -g- The price suppression you were talking about has contributed to reduced relative valuation of PM miners, and reduced production of gold, which is actually bullish for the metal. Mostly it's gold/oil ratio that matters!