RE: RE: Nice ActionShort version: GOLD RULES. HRG: Buy for value. Buy for momentum. Buy for sector. Sell for .01 if you need it!
Well those were some flattering posts, thanks.
My view, as per usual has not changed, but I do note that the price of gold looks almost unstoppable over the medium term, with volatility of course short term, and at any time.
There are still those who actually ask why people should or do buy gold. And some, even those who buy, do not get it.Imo The most fundamental reason, and the one that overrides, as I see it, even the consumption figures in India and elsewhere is a seeking of REAL value. When we buy stocks, CD;s, Treasury Bills, mortgages or almost anything, we are buying a two sided situation in almost all cases. When you OWN actual gold, nobody has a claim on the other side. Look at what has happened over the last year, how "equity" has completely disappeared. Look at those caught up in the frauds, leaving many holding, what is it, a promise, a piece of paper, worth what is it? Well here we have upon us NOW, without a doubt, the biggest paper crisis in history. It is way beyond the 1930's in scope and amounts.IMO So what is worth what exactly, and can you actually collect upon it in the future? Those questions, as more banks, frauds and other stuff goes broke become very real for those who want to preserve or guarantee having something of value. So what exactly should they own: T Bills??? Credit from the MOST IN DEBT ENTITY in the WORLD. That is fact, not fiction, not grandstanding, panic or anything else, just plain fact. Most, rightfully consider the chance of not collecting on these as remote. Is it? Who is going to pay off the debts, and when and how? More debt coming: GM, Banks, stimulus. Even Greenspan is NOW saying print!
So when you look at a reserve currency, circulating ALL over the world, and you start to smell that people may lose faith for a variety of reasons moving forward, regardless of whether its inflation or deflation, you should consider ALL possibilities. Then you ask, what would happen if EVEN 1% of the investment funds AVAILABLE, were to move into gold, what would happen to the price? Price would go up to what now seems like unbelievable price, WHETHER INDIA consumed 1 ounce for example.
So let me remind you now, go and try to buy physical gold, not paper gold. You may be getting the picture at that point. Having trouble, being told to take paper, a promise or something else?? People may panic at any given moment, we simply do not know what the limits, tolerance, mania or other factors playing here will lead to. Will something be the proverbial straw and set of a full blown run? It certainly looks WAY more possible to me, than even one month ago.
HRG and similar plays, they could go ballistic in such a situation. If gold moves to $1500, which is not so crazy anymore, then the values of this and others will move up incredibly. And nobody will be able to stop it. Not even if the likes of a Severstal wanted to, which I am not saying is the case. Reasons are far more complex than some think, in terms of fair value, minority shareholder rights etc. for anyone trying to keep the price down and then take over. Very difficult to stretch evaluations, when you paid .20 and everything was worth LESS. Very hard to convince the majority of the minority to part when things are moving up all around them.
I said before this little bump: IF gold and silver run, it will OVERPOWER EVERYTHING ELSE.IMO
As the word gets out, let those who want to sell for a penny, day trade, try and hold price down do so. They will lose and get swept away and be very frustrated at their short sighted take on this.IMO What we have here is simple: gold is going higher, the world is entering a VERY scary PROLONGED period of financial instability, and the leading currency should be going down not up.IMO That by the way is why, gold seemingly has seperated from its traditional stance of going up when the dollar is going down and the opposite of course. Take notice, I would say, it is telling you something.
When the rest of the world stops funding the U.S. debt, which could be sooner than later. Gold also rockets.
When inflation hits because they print so much money, and take on debt they can't pay without printing, gold rockets.
If you can see them solving this, without huge repercussions moving forward, buy GM. I see this as FUNDAMENTAL CHANGE. It will be a bad decade, one way or another, unfortunately for many.
The play, as I see it: Gold mines, run, huge price increases, then convert if the panic gets out of hand over time and diversify back into what NOBODY will want at that time. Fortunes may well be made here, if you stay alert, sensitive, and objective. The perfect CONTRARY investment world is unfolding. IMO
Now that WAS longqvht. LOL