Crude just like IO is suffering lower demand and much higher supply! Hence I am just slowly contemplating dipping my toes into IO and even that is more out of desperation of missing the IOP rally! These commodities are relative from where you are lkig from having had more than a 50% haircut in prices. Gold is not far behind but I am in gold not because I believe the world is crashing! It is more a bottom up approach where I am stock and management specific.
The gold sector are peppered with corporate cowboys who were accidental heroes. A lot of the CEOs were lucky enough to catch the right move at the right time and all they were interest was throughput. With a buoyant POG it is easy to get carried away with skillset from luck but now that POG shot down to 1K circa, the separation of buys from men! How many of those LT holders believing QE fundamentals will be their saviour to a life of easy retirement nest egg when their capital has a 90% haircut?
I don't want to rub salt into their wounds but the current discussion about gold is money or gold retain its value because it has a 5,000 year history should pull their head out from the comfort of the sands. It is just another commodity that suffer supply and demand issues just like any other commodity. No use blaming conspiracy for bad luck. It is what it is. We are swimming among sharks.
