gold heading to the $1500's, page-81

skol, I am way overweight (on purpose) in gold miners / developers; oddly, I can get GOLD at about $1000 oz (not the current $1650 USD.

to be honest, I am very wary of my position; it does not make sense to me that when the POG was $1000 USD the ASX miners/developers were 'x'. Now that POG is $1650, the miners/developers are still 'x'. So I bought a lot at 'x'.

There is no way in the world I am buying fiat bonds at 2 or 3%

Cash is an altenative. And from time to time I have rolled all back to cash if I have caught a profit and feel uncomfortable with the upside of all the shares I know. And cash is great if deflation comes. But I think the status quo will hang for a while... re POG I think it will sit around $1600 USD. With a big biased to UP - on any bad news (real world uncovered up) event.

So, since I NOW got $1650 miners at $1000 prices, with a bias to UP, that is where I am.

If I was not there I would be all cash. That is, I not super keen on gold at $1650, because it went a lot up in the last 12-18 months. Lord knows how to price the stuff. You can see that interests me. Where to put investments when all govts are trying to debase currencies and run a ponzi scheme.

I gotta find stuff that holds value in inflation or Armegeddon (deflation). Gold is it, but cash is next cab off the rank. Since Armegeddon will not be allowed (I trust my wife's opinion that THEY will not let it happen), that rules out deflation. So I suspect there will be slowly falling asset prices (as the west recovery is debunked) and mild inflation and most importantly NEGATIVE real interest rates. Being the Guru you are, you would know GOLD performs best in a negative real interest rate scenario. So we have Bernacke's nil rates with inflation = big time negative real interest rates = big time GOLD increase.

Now, as I said, it is odd to me the HUI is so badly treated. It really means one of two things... the big money is manipulating OR the big money really does think GOLD is a long term $1000 price.

I am willing to bet a LOT that GOLD is not long term $1000 - but will slowly climb. My miners/developers are trading on PEs of 3 and 4 with mine lifes of upwards of 20 years. And they HAVE the stuff in the ground to not waste their profit exploring.

And, if there is a mini-armegeddon the input prices to mining (energy and labour) will fall. And the fact my shares are AUD, the POG is much more steady in AUD (gold down, USD up; gold up, USD down).

So, I am kind of hedged. But, yes, if the POG falls a lot, then I am burnt. Mind you, all my investments with big funds AMP and ING were all super conservative before the 2008/9 crash and they still lost upwards of 50%. That made me angry, telling my fund managers to put all in 'conservative' and they still lost 50%. Since that day, I will never trust a big bank, fund manager, govt.

Hey, I did like Telstra shares before their recent climb 2.90 to 3.30 - and divis (to be honest they are good now, I think). I dont know where you figure a 30% increase for you. I honestly think you tell a lot of 'stories' that aint quite true. But maybe they are true.