My take on this general sell off of gold miners is that the U.S....

My take on this general sell off of gold miners is that the U.S. Fed "claims" their economy is in much better shape than many have predicted. Unemployment numbers are 7000 less than previously reported and builders cannot satisfy housing demand. Therefore the economy is robust and resilient. My question is, are they measuring the things at the coal face that really matter? For instance, our own Government claims inflation is 6%, but a visit to the supermarket paints a different picture. Woolies own brand bread rose from $2.20 to $2.70 in one jump. Thats more than 20% and there are heaps of similar price increases over the past 12 months on other items of similar magnitude that we buy regularly. I have received multiple emails from my hardware suppliers of pending price increases this past year. Timber, paint, cladding, roofing iron, bolts, aluminium extrusions, glass etc - the lowest increase was 7.5%, up to and including 30%. The mean would be in the high teens. Anyone having to rent might also laugh at that inflation assertion of 6%. The people that compile these inflation figures dont live in the world l inhabit and l postulate the American bureacrats dont either. Naturally they are going to understate the true state of the economy until it falls off a cliff.

The current sell off is just reacting to this "spin" in my opinion and the true state of things is much more dire than governments are letting on. The commercial loan fiasco in America is dire and will bring quite a few regional banks to the wall later this year according to sources l am reading. Same sources say the Stock Market is going to fools rally, then crash later this year as well. If they are right, gold will appreciate hansomely and this sell off is nothing to be concerned about. Directionless investors just getting nervous? Hence todays price action.

Soft landing and all is fine in the land of free where excess has no limits or consequences - America. Or the mother of all recessions that guts a nation? One of these camps will prevail within the next 12 months so sit tight.