Ann: Proposed issue of Securities - RED, page-20

If the goldbugs are correct and magically, despite economic mayhem, they and others have cash to gold and gold miners. It's my long time observation that in a room of gold miner enthusiasts, virtually no one will own any precious metals other than the wife's jewellery. The reality is the bulk of buying is done by central banks and ETF's. The economic situation in Italy is dire, and the parties of the left (the dreaded socialists) want to sell Italy's gold reserves, the 3rd largest in the world. What do you think that would do for the price ?? Russia's CB has suspended gold purchases. Gold has no inherent value. Its value is the result of opinion. Don't you ever wonder about the paradox that the worlds (new) leading gold producer sold all its gold reserves 20 years ago. It was the least of Costello's economic blunders - the greatest was not establishing a sovereign wealth fund - He and JollY John used the proceeds of the greatest mineral boom in our history to fund Coalition election platforms. If the Stockmarket has another dive, then all stocks will be sold off, especially (temporarily) liquid winners. I has a large holding in a particular gold company in 2012, and the broker who was pushing the stock with 20% upside and a "strong buy" recommendation, simultaneously has a "sell" rating on RRL ... which turned out to be correct .... cognitive dissonance on steroids. When you're in a bullish frame of mind, your analytical faculties can desert you ... cognitive bias is the number 1 enemy of rational thinking.
I believe that in the short term, RED is relatively underpriced BUT it completely depends on the POG. Do you have house insurance, car insurance, personal insurance .... all the become more expensive and imperative as risk increases. We are currently in the riskiest investment environment in my life time. Gold was trashed in 2013, it can, and will happen again.