spot gold jumps again, page-7

Hi all,

For some time I have been wondering why the gold stocks seem to lag the actual gold price. I put the following two paragraphs on the UML thread as I hold some stock.

The gold stocks in general here in Australia don’t seem to grab much attention from the investing public but then again we have to remember that around half of the previous investing public now fit the official category as being sophisticated investors.


A sophisticated investor being one that has lost all of his or hers investing capital. I still don’t think a great deal of people understand just how much capital disappeared off the face of the earth over the last few years since 2008.


Since I have been back in Queensland I have caught up with a few acquaintances and in my small circle of over ten but not more than twenty people I know of five former market players that are now out of the game. 1: lost badly in the restaurant business, 1 in leasing and finance 2: badly burnt in real estate and another lost all in his storage and developing business.

Whether we have sympathy for these people and the many others that I assume you guys also know or not we have to accept that there is going to be a great deal less money around in the stock market. The Japanese market is now 79% below its all time high and has been for two decades and I dare say it could take another two decades to recover if it ever does.

I am sure things will improve one day but I would believe it foolish to think the stock market, real estate and all other business areas will achieve their 2000 levels in the near future.

Skol puts his faith in his land and self-sufficiency I put mine in physical gold and silver and I feel in many ways we are preparing for a similar conclusion to the financial mess currently playing out.

Just as a sideline I take a Lipitor tablet each day and my doctor gives me a six month supply when I am travelling. In conversation with my doctor he tells me that many of his older patients have requested holding a six month supply of their prescriptions. Maybe more people than we think are making preparations.

As always just thoughts shared in good faith.

Cheers and good investing: Andy