But as we have seen, gold has to battle hard to make any decent price rise while other commodities are free to soar.
Other commodities are not deliberately sabotaged. When news is really bullish for other commodities you don't find them getting smashed in response to that news, against all logic, because of a deliberate attempt to control the price rise.
Most commodities have performed much better than gold, and so the companies which produce those commodities have outperformed gold stocks big time.
As I have been told by investors who have decided to abandon gold stocks, this time, in the internet age, it IS different.
Due to the excessive amount of spin gold shares are treated as equities and fall even harder than the rest of the market when the market falls. But gold usually rises when the market falls. So gold rises and gold shares fall, as we have witnessed for many months.
But when the markets rally, gold usually falls, so gold shares are then sold off hard because of the falling gold price.
What an amazing lose lose situation has developed for investors in gold shares.
They basically have to hope for the unlikely double - markets to rally, and for this rally to be accompanied by a rising gold price.
If so, what's the point having gold shares?
No wonder a number of investor friends and acquaintances of mine have abandoned investing in gold shares as a lost cause.
