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

To: tyc:> who wrote (63821)	2/27/2009 12:31:17 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 78412

There are always risks that could delay the inevitable. For example, a collusion of central banks could dump on the market whatever gold they have left. In the end though, gold is a perpetual store of value while fiat currencies have no intrinsic values and they get wiped out over the long term. Longer term, all resources have to be in a bull market. It is a question of maths: a growing industrialized world with a limited amount of resources. Add to that the fiat currencies reality.. and you can go worng with base metals long term. However, when it come to consumable resources, the variation in economic activity causes wide cycles in the demand and therefore prices of commodities, including base metals. Furthermore, the credit crisis makes it that only companies in good shape becomes good investments.