is the gold bull over?, page-29

Danhoff - love your understated list of the utter insanity that parades as the norm.

I have lived well off shares for 8 years by buying and selling shares that seem no-brainers. Nothing flash, limited risk, Telstra under $3 for example with the NBN in their lap, CCV after they crashed etc. All I try to do is beat the best term deposit rate by 100% each year. I have exceeded that comfortably.

Now gold, I have come close to buying gold stocks and physical gold a few times. If the shit hits the fan it will have to be the universal currency for some time at least, if they let us. The money printing is no different than a heron addict who thinks they are in control of an addiction only to wake up dead one morning. Something has to give, printed paper masquerading as a thing of value, money, is just a promise from a bunch of people who are close to criminally insane.

The gold bull may be over but somebody forgot to tell the mug punter because during the recent dip, crash, end of the world, they went out and bought like there was no tomorrow. If only real gold traded I wonder what it would be worth? You can drop the word silver into any place I write gold.

The reason why I have shied away from gold stocks is because as several of you have indicated among a whole bunch of very good posts, they don't pay much in the way of a dividend and gold is subject to the most audacious fiddling imaginable, from price manipulation to making it illegal to own, as in the Depression. $10,000 fine and/or 10 years imprisonment for any law-abiding US citizen seeking to protect his wealth by simply possessing physical gold coins or bullion.

If a company mines a great little deposit of gold for 10 years then closes down after making big money for the directors and their families without paying a respectable dividend then what was that company worth. Absolutely nothing to me. So do you buy hoping for a takeover? The odds are no better or less than betting on horses which I did for 2 years and made a good up and down living.

All this being said, I'm about to buy a couple of gold stocks because I think the irresistible force will overcome the smoke and mirrors presented by the overlords. We have a global economy that has run out of borrowers. If anyone thinks the world has stabilized or is improving please post your evidence or convincing argument because I don't see it.

Gold may have had its stellar run but you'd have to be brave to back something to beat it. It will end up like an old brick chimney in a paddock, still standing after the house has fallen down, that's if they let us keep it.

Couple of nice posts siameseparrot. If I ever open a bar I'm going to steal your name.

wafflehead