RE: John Embry's comments".... Embry's paranoid views on a world banking conspiracy, however, do not impair his ability to judge the quality of small mining companies. His trade decisions concerning individual companies are based on sound business logic. ..." -bloomfield
Excellent post bloomfield. Spot on. I have observed many investors making good 'bling' on o&g companies in the past years, yet these same investors seem to have at best a minimal understanding of the political economy of oil. Still, they know how to pick good companies.
I also agree that the POG is high because of lingering expectations of higher rates of inflation. The fears are understandable I suppose. But eventually, whether the gold bugs take the time time and effort to understand contemporary monetary policy or not, those fears are going subside and the POG will decline.
That said, there is still lots of time for the nimble to make money on Au. Thankfully FRP has diversified their interests into a commodity whose future demand appears particulary robust: u308.