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

To: Zincman who wrote (41004)	2/15/2013 11:50:53 AM
From: benwood	3 Recommendations Read Replies (1) \| Respond to of 48092

fwiw, I rarely see 'advice' on this forum at least. Just commentary and opinions. I pointed out that irony recently that the lower gold goes, the more commentary I see published about how much higher it eventually will go. Sort of like a promise of heaven. I can't help but think that if I were a gold investor in 1982 or so, I'd have seen the same sort of stuff. But I also would have seen the same sort of commentary about gold around 1975 and 1976 where it dragged along a persistent decline and dropped from about 175 to 100 over a period greater than a year. A similar decline from 1900 would see 1100 visited. Followed by a ride to 8000. Ouch... what a bumpy ride.

To: Zincman who wrote (41004)	2/15/2013 12:45:06 PM
From: Mike M2	7 Recommendations Read Replies (2) \| Respond to of 48092

In the short run markets can do anything since emotions are a powerful driver but in the long run valuations are driven by fundamentals. I have been investing for 20+ years. I have made many mistakes over the years and continue to do so but I try to learn from them. When I have strong convictions I tend to fight the tape putting me in this unpleasant situation currently but I will NOT fight this tape until it is very obvious to me that the selling has exhausted itself. My guess is we are close but we may get a final whoosh downward. I am very confident that the in the long run gold will rise as the FED, BOJ, ECB, BOE continue to print money. Many of the gold bulls have been recommending gold since the year 2000 when the POG was hitting the low $250s. even after the recent decline gold has risen 6 fold while the S&P is trading near its peak of March 2000 . The fundamental case for gold was compelling to me in the year 2000 the current fundamentals are much more compelling. I am confident that the price of gold will go on to record highs. Gold mining stocks are very cheap relative to the price of gold but they can get cheaper as we have seen in the last few weeks. One scenario which would hurt the bull case for gold hitting record highs is if the global economy goes into a deflationary depression where all asset values decline but the Central banks seem to believe that if they print enough money they can prevent this ( bullish for POG). Central banks have a vested interest in controlling the price of gold so anything can happen in the short run but in the long run gold will continue to rise. I promise not to ridicule your calls for lower gold until the price of gold exceeds $2500 -g