TSXV:PEM.P - Post by User
Post by
cigar1on Apr 18, 2011 1:59pm
179 Views
Post# 18447706
Gold Stocks....
Gold Stocks....will have their Day because Hedge funds are long bullion & short mining shares according to Smart Money Europe & if Gold/Silver continue upwards then mining shares may well explode higher!
Although we do not adhere great importance to rating agencies anymore, as we believe they have lost most of their credibility during the credit crisis for not predicting things the market had seen coming for a while, this downgrade may well prove to be the straw that broke the camel’s back.
US investors and overseas investors who hold a large portion of their liquid wealth in USD should seriously consider shifting part of these assets into bullion, i.e. physical gold. It is the best way to shield their wealth from USD debasement.
Meanwhile, we strongly believe gold and silver mining equities have a lot of catching-up to do. In the past few yew years, mining shares have never been cheaper versus the underlying metal prices than today. Most of this underperformance comes from hedge funds going long bullion and short mining shares. If gold and silver continue to perform well, they might be in for a rude awakening and get burned.