don't want to rain on the HC party - this post comes into the "managing risk" category
and I still have around a 40% portfolio weighting to pms and pm stocks (its just grown to that)
but there IS big-time short-term risk for gold out there still I reckon and I wonder whether I should shove more in the bank and go fishing:
Bonner today:
http://dailyreckoning.com/red-october/
"There’s substantial risk in gold as well as stocks. The ultimate low for the Dow should be below 5,000. That is, let’s say, about a 50% haircut from current levels. And let’s assume that gold does what it did yesterday…let’s suppose that it goes down only 40% as much as stocks. That would still be a drop of 50% of 40%, or 20% – to the $800-an-ounce level."
and here's an acknowledged expert on structured finance telling the world that we are in a worse position for a deflationary collapse than in 2007
I think its possible we might see gold in Oz even go up a little if the AUD collapses against the USD (IF it does) and many of our juniors will chug along happily with gold above $1000 AUD so
I am not too worried
but I do worry that maybe cash is king in Oz (and not many other places) for a year or so until this storm passes
it just that the "greatest credit contraction for more than a 100 years" has been deferred for a little while and I don't get to hear that BIG BIG picture that much as we all talk about the Chinese, sus out gold stocks or argue about "flation" or whatever
