Not long before the oil price crash in 2008 articles started to appear in the newspapers and internet on how to get onto the oil mania.
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Hi all.
Question. So we are seeing countries inflating currencies. Then I read a link posted here recently that stated that many developing nations are jumping off the inflate bandwagon in order to preserve internal stability (allowing their currencies to appreciate).
What effect will this have on gold and silver? Multiple ways to view this. Would like your views. Especially Skol's :-)
What downtrend Hoop? I'm not sure I know what you mean (:sleep::sleep::sleep::sleep:zzzz)
Skol's mate Doug Casey now thinks gold could reach $5,000 an ounce at the top of a super-bubble, the rationale being that we are in the eye of a storm with another bad phase ahead.
http://www.theglobeandmail.com/repor...rticle1933098/
Before you rip into Mr Casey, Skol, it seems he's bought a chunk of Argentina and is raising drystock... as one of his investments.
http://beta.images.theglobeandmail.c...221263cl-3.jpg
Quote:
An argument for $5,000 an ounce gold
Quote:
John McCrank , Reuters
Published Monday, Mar. 07, 2011 6:51PM EST
Junior resource stocks, while no longer cheap, still present speculators with big opportunities as an unprecedented rally fuels precious metals and the companies that find them, said veteran investor Doug Casey.
Casey, a legendary investment guru who founded and chairs his own researchfirm, said he would not be surprised if gold hits $5,000 (U.S.) an ounce in the next couple of years, as paper currencies in the United States, Europe, and Japan drop in value.
“Central banks all over the world are creating trillions of currency units and that in turn is creating lots of bubbles,” he said in an interview on the sidelines of the PDAC prospectors and developers convention in Toronto.
“It’s very probable that they’re going to ignite a bubble in gold and they’re going to ignite a really wild bubble in small resource stocks.”
Gold (GC-FT1,427.80-6.70-0.47%) hit a record high of $1,444.40 an ounce on Monday as oil prices spiked on political instability in the Middle East and North Africa, and on worries that a downgrade of Greek debt could undermine confidence in the euro.
Casey said he believes that gold is not even close to overvalued. In his opinion, the current economicrecovery will not last – we are “in the eye of the hurricane,” he says – so gold’s safe-haven appeal will only get stronger.
He said he also likes the prospects for silver (SI-FT35.77-0.10-0.28%), and that if there’s a bubble anywhere in the commodities sector right now, it’s likely in rare earths, a group of metals used to make electric car batteries and electronic devices.
A SIX-YEAR-OLD WITH A CHAINSAW
While there’s a lot of money to be made in speculating on companies that seek out and extract precious metals, it’s a high-risk sector that’s not for everyone.
“For the average person to get into this sector and get overweight in this sector is like giving a six-year-old a chainsaw – it’s very dangerous.”
The stocks are volatile, the commodities fluctuate in value, they require huge upfront capital to extract, and there are huge political risks. Most explorers will fail.
Some, though, will find what they’re looking for, and when they do, their value can grow by 10-fold or even 1,000-fold.
“You only need one of those if you have a halfway descent position in it, once in a lifetime,” he said.
His Phoenix-based firm recommends prudent investors put 90 per cent of their portfolios in lower-risk sectors, like short-term bonds, dividend-paying stocks, and precious metals and gold, while putting the remainder into speculative investments.
Here's something I hadn't thought of: pension funds, and their minimal current gold allocations.
http://www.ob-research.com/The_Drive...e_Not_Watching
Gold stocks getting massacred EZ, XGD down 300 points (4%) and the HUI down 6% in the last 3 days.
Could be the death knell, better unload this silver at the top.
The partys over-Could be the death knell. Carry on,youll get it right some day.
I only wish Id bought silver last time you said the partys over..
Then buy it this time if I'm such a contrarian warning.
The fact is no one knows what the POG is gonna do. Inflation, oil price, Libya, Euro debt, USD, resources, China, even the 'experts' don't have a clue. They never have, they want to sell gold and sell books to suckers on how to get rich quick.
You may as well throw dice.
If you've put money offshore over the past few years and you live in NZ, you're laughing.
The NZD is going to tank for a fair while I'd say.
Hi Skol, it's a crap day for the PGMs and goldies. But I do recall that usually when the Dow goes down, money flees into USD, and then a day or two later PoG goes up. But I'll wait and see.