No, don't buy gold shares, think about, rising electricity costs from Eskom, higher wages from union demands, deeper mines to get to gold, falling gold production, ten or twenty years ago SA produced 500 tonnes of gold, now only 200 tonnes. You can maybe trade gold shares if you know what you are doing, but investing - no way
I hear you. But is the reason Harmony has dropped to such a low because the mine has been closed since 2 January? The unions have reached agreement with the mine so when they restart production, surely the share will go up again?
Based on that - one must assume that there would never be a need to close a short on HARMONY! Remember our chat re HARMONY when I maintained that GOLDFIELDS was the only SA gold miner worth having... Unless something drastic happens - HARMONY is headed toward extinction. Her balance sheet cannot carry this mess - so it is up to her poor, benighted shareholders to fund her. Run!