Let's talk,converse and blah the Friday...## It seems that the Deep Impact that Goro Adachi was talking about is,well,here.Those INTEREST RATES are signalling the beginning of a Catastrophic phase.Credit Lock-ups.A convulsing Terminal Patient.Hyperinflation at the presses to cope with resultant downdrafts....The last thing this market picture can afford is RISING RATES.Dudes and Lasses,we are now entering PS2...PlayStation 1 was 2008 till present.The volatility will be a Big-wave riders dream.Get the idea right out of your head that TRADITIONAL FUNDAMENTAL ANALYSIS means anything.It's all just Money-flows,a Video Game to the finish.GOLD is 'My Precious....".
I have a simple question..."How many fulltime DERIVATIVES-ONLY PRIVATE TRADERS ARE ON THIS FORUM ? ".....I am One.Tell me your tale of horror,along the learning-curve.Did you drink a lot ?Did you curse the visage staring back from the Mercury-sodden plate ?"...yes...did you subscribe to weird websites and call it 'CyberBonding,I have nowhere else to go ?"...traders.Their own mothers deny the fact.
I could do with another bubble bath. Expectations of bad times being good have been delayed to say the least. But with the sure knowledge that the worst of it all is yet to come and then some, hanging in with long gold share derivatives has returned the 200% draw down on paper and the interest. But now is not the time to be faint hearted. So I increase and return into the sweat box. Its gold shares and their derivatives or cash, QE3 or not.
I tend to agree with VI here. Its a WHEN not and IF. IF the gov's of the world stop spending more than they take in and IF central banks stop zero interest rate and money printing policies then gold will take its thumping. Until then its going up and "quality" gold shares will follow. ANG are pulling gold out the ground in south america for $450 an oz. Ghana is $600-700 and SA is just under 700. Profitable. Esp as they no longer have a hedge book
Ah, but they pull out less and less every year, and it costs them more and more every year. And they pump exhorbitant amounts of capex every year (which very neatly does not get triggered as a cost of sale), and they have a PE of 50! Keep on the dream of making money on a gold miner! Just look at that chart - rand gold price trading almost 300% higher than 2006, ANG trading 14% lower than its 2006 all time high.
Yup ANG has no hedge book.It's on every Institution's screen.It's a liquid Blue-chip.Here comes the money.So, put line in water at these prices and let Fishy come to you.No more Fake-fake.No more Miss Goody 3 Shoes....be selfish.Subscribe at 2006 prices.Inflation will take care of the rest.