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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG -- Ignore unavailable to you. Want to Upgrade?

To: gold$10k who wrote (30630)	8/17/2011 9:27:11 PM
From: ItsAllCyclical	2 Recommendations Read Replies (3) \| Respond to of 48092

I agree with many of your sentiments. I think you've played the past 12 months better than me so in your position/age I might invest very similar. But wanted to point out some differences as well. 1) Dollar has not moved up as a safe haven like it did in 2008 2) Gold stocks are far cheaper as a group vs 2008 3) Dividends are more substantial and increasing 4) Small caps have held up better 5) More countries have gone the nationalization route making reserves in canada (and similar locals) that much more valuable. Again I share your caution but on the recent spike down in the markets I saw far more accumulation in GDX than other sectors. Another dip would be a buying op. I don't see a smash similar to 2008 here. We could have gold head higher w/more under-performance from the GDX. Afterwards everything gets smashed. I wouldn't be chasing GDX now, but on a dip I'd be buying again. I think there may be decent odds that gold is going to do what silver did when it went from 20 to 50 without a big correction. However given the disbelief in POG it's quite possible that overall the gold stocks will only perform in-line yet again on such a run. If I had zero positions I'd be buying physical silver first, GDX second and PHYS or physical gold third. I'd probably buy some beaten down gold-in-the ground plays before PHYS given the value that's out there. All FWIW.