RE: RE: RE: Short ABX due to bad Argentina news Flurple,
yes, he must have meant Chile. I considered the Chile + Argentina variables. From what I can tell ABX is not denying they did mess a few things up in the environment in Chile. My take is they will pay the finesm get back into compliance then resume work on Chile's side. As for Argentina my understanding is the gov. there is allowing Barrick to go ahead despite events in Chile.
As for gold market manipulators (in reference to other random posts), gold will continue to have a floor price driven by the cost of production and non-safe haven gold sales (jewelry, 10% in technology, coins, etc). Inflation is inevitable in the medium term. The money supply is distorted, investors are unlocked their bond money and moving into more volatile investments where they are more subject to use it in the real economy when they get into bidding wars for goods and services.
QE is also inflating the money supply by surrepticiously adding it by way of bond capital gains for investors, interest payments returned to the Treasury by law (which will be spent right away in the real economy).
And finally banks have stockpiling reserves thanks to the Fed making it possible. Once banks start lending it out (due to gov. pressure, a false sense of the creditworthiness of people, an overconfidence in the economy or if they become desperate to inflate their balance sheets -- whatever the reason once all that money is lend out the fractional reserve banking money multiplier effects will send inflation rippling through the economy.).
There will be inflation and gold is a hedge against it. Always has and will continue to be.
Now is the time to buy gold stocks now that everyone hates them.
ps. I'm going back to see Star Trek Into Darkness in IMAX 3D tonight. I encourage everyone to go. AWESOME movie. What a ride.
To stack, I averaged down on ABX IMG and EDV today. Have you been buying more gold stocks lately? Do you think gold stocks have bottomed? I do.