far north queensland, page-11

Another one from Siamese Parrot (yes I clicked the thumbs up SP) - it says do not actually buy gold stocks but an explorerer moving in to production could be another option as the price is not only leveraged on Gold but leveraged if it moves into production

If Republic can move into production with POG at $2,000 well the share price could go absoluteley ballistic

Cut and pasted from Siamese Parrot

Warnings on gold stocks

Jim Rogers, former partner of George Soros, says buy gold, not gold stocks. He sees the metal going to $US2000/oz in short order, so you’ll make more money buying the physical market. On the other hand, so many gold company stories never pan out. (We have to admit: ain’t that the truth?)

It so happens that Baring Asset Management agrees with Rogers. Dow Jones reports that this London firm is recommending investors should switch from mining equities into bullion.

At http://www.theaustralian.com.au/business/mining-energy/warnings-on-gold-stocks/story-e6frg9ex-1225799245049

Siamese Parrot's comment:

These sort of switch recommendations are usually always made at highs and lows. We know gold equities have been disappointing in recent years. Let's face it. There simply will not be enough physical gold to go around. The market capitalisation of all listed gold equities compared to Wall Street giants like Google etc. is miniscule. It won't take much of a change in sentiment to send gold equities flying.

By the way, to suggest that physical gold will boom but
unhedged profitable gold producers which are leveraged to the gold price and gold equities in general will underform gold in the long term is to ignore human nature.