Gold....

[barry_1]

The contrarian metal at the moment....as currencies become unstuck,people turn to gold as a store of wealth as it is something solid and can always be revalued to whatever monetary system is in use at any given time....America has vast amounts of gold in their government vaults as a last resort,in case paper notes devalue to a point of little value....that is why they can create paper note value with such abandon to try to dig themselves out of their mess as they know they in an emergency back their dollar with gold,although at the moment they don't....France is another believer in gold and now reluctantly the rest of Europe is beginning to refill their gold reserves as papaer currencies are showing themselves to be anything but stable.

[barry_1]

Since 24 Oct 2008 the prices have risen as follows....ANG up +75%....GFI up 107%....HAR up 79%....The midcaps ....The ETF NEWGOLD up 17%....DRD up 140%....SIM up 82% ....and now the small caps and exploration companies are starting to run....i consider them a good alternative to warrants as there is no time decay....How ever to be on the safe side keep a stop-loss on place in case of sudden reversal caused by volatility....i run mine ar 20% under the price....These are GBG,CRD,PZG and the interesting exploration company on the ALTX namely PAN....ps i hold PAN,PSG,DRD,SIM and buy and sel warrants on the majors from time to time.

[barry_1]

....almost forgot AFO up 75%,soon to be GOLD ONE which i also hold....Interesting to see how former platinunm wanna bees are trying to reposition themselve ar gold producers as well....i see JBL is doing this,how ever at the moment i'm still sceptical,but will watch developments closely.

[dookie]

Hmmm... I think it's contrarian allright. But contrarian down and not contrarian up! But that's for the next couple of days!

[barry_1]

!

[#6]

Dookie, where's your Harmony short stoploss sitting at?

[dookie]

V - I'll be out if HAR closes above 12400 on FRI. If it soars way above that during the week, say 12700 - 12800, I might have to let it go before then. :-(

[#8]

Good luck to ya. It looks like gold has smelled $1000, but then anything can happen - and usually does.

[Theater_Cat]

This 'bubble' too must run out of steam - prices dont double overnight and keep going going going. The first bounce in global markets and these shares will drop 10% to 15% in a day. Hou maar daardie stops mooi dop.

[dookie]

I'm sure we're going to get a pull back some time, but when, I can't tell. I took another look at my chart and on second thoughts, it's looking pear shaped :-) So, I think I'll be bailing first thing this morning... :-(

[dookie]

I'm out. Eeeouch.

[_nova]

Factoids: The US reserves of AU = around 8200 tonnes at about $30.3million per tonne or around $250 billion total value. In context that represents about one third of the recent bailout package. It is the biggest single reserve holding in the world (except the EZ combined is around 11000 tonnes). However, the US has total debt of $58 trillion (Boomer promises, medicare etc included) and against that 250bn is a drop in the bucket. To get par value the US would have to hold 1,915,000 tonnes of AU in reserve, and that's quite an impossibility since there is not nearly that much AU in the world. Total AU ever mined is around 150,000 tonnes. Believe it or not but they simply do not have enough AU to back a paper currency as it would trigger the mother of all depressions. On the other hand, issuance of a fractional backed fiat currency requires production and confidence and at least some semblance sanity in the leverage.

[barry_1]

What are u in derivitives(ssf etc)....i'm not bailing just yet on the mid and small caps ,in which i own the shares....OMO but i think the metal price might not hesitate till near $1000,anyway i will keep during small pulbacks as the direction is still up....PZG is only still regaining some of the price it lost.

[dookie]

You tell them Nova. Stop buying this k#k!

[dookie]

Yip. Looks like this thing is running. Enjoy the Bahamas. :-)

[barry_1]

of course there many industrial uses,such as in large glass sheets,cuts down UV rays,in large buildings,it can be combined with other materials and produce very good catylitic converters cheaper than platinum,it is also a catlyst used in glass making process.Being a mallable metal it that keeps its lustre used in jewellary....dentistry etc....anyway it set our nation on its feet long before any other metals came into prominence,why not trade it when it is again playing a rescuing role whilst all other metals tank....i'm cautious of the increasing price of platinum at this stage as there is a slight surplus which is likely to persist !

[dookie]

Nothing wrong with trading it while the going's good. Stocks, goats, enron employees... whatever.

[#18]

So Harmony's added another 4% on NYSE. Gold up $18. Starting to feel that the starship Harmony cannot maintain warp 11 any longer. Time to cash in half of the chips.