RE: Physical POG...........Kew...
As you can see...gold is very scarce...& the "flight to safety"...nourished by fear...has been to physical gold instead of gold stocks with the rise of the POG!...However...not because of inflation...but because of a lack of confidence in governments around the world & the erosion of their currencies!...Not even the major gold miners are seeing the SP rise to any large degree...as they did with the rise of the POG to $1100!...The rise in the POG is different this time!...Gold stocks do not generally do well in deflationary times!...We are in deflationary times...the majority of central banks...are not raising interest rates...& this deflationary period...will finally give way to inflation...perhaps more likely stagflation...& then hyper-inflation...won't be noticeable until the fall or early next year!...When gold stocks do follow the price of gold...the leverage is usually 5:1 to the POG!...Major gold stocks are generally the first to run up...next the intermediate gold miners...& finally the junior gold miners!...The seasonality for gold...is generally July 15 to the end of every year!...Now with the shortage of gold...the SP for gold miners MUST go up...or the gold miners will not be able produce the gold due to rising costs!...Hang in there with your shares...at the earliest...the hope is...once gold reaches $1300+...CRK's SP...along with other junior gold miners...may start to see their SP go up in tandem with the POG!...Also...not because of scarcity...but because of hyper-inflation...food prices will soar...& food prices may double...triple...or even more by the end of 2010 or early 2011!...
GLTA...
Bag Of Gold