I sleep well because I have factored in the ups and downs of the PRECIOUS METALS MINERS. What is lacking is investor knowledge of the PRECIOUS METALS MINERS. As in the film ,FIELD OF DREAMS ,build it and they will come, meaning when the financial institutions come to gold ,so will follow the generalist investors. Right now billions of dollars are flowing into precious metals ETFs and bond market players are pushing gold up and taking profits ,hence the volatility in the POG. Many analysts are talking $2500 - $3000 USD GOLD by years end. With the U.S. midterm elections due in NOVEMBER , there will be pressure on THE FEDERAL RESERVE to about face and restart Q E and drop interest rates again, many analysts think it starts around late AUGUST,early SEPTEMBER. Every thing has been engineered to drop the commodities and housing markets and lower inflation, it's a fine line they tread ,keep it up too long and they might trigger a full blown depression . Most governments around the world are so heavily indebted that a major recession would destroy their tax base and they would be forced to default on debt repayment.The USA debt at 5% interest would destroy the country as tax collected would fall to around 2 trillion or less while having to fork out 1.5 TRILLION in interest, not possible. The worlds only way out is massive inflation in combination with at least a $10000.00 POG per ounce as fractional backing for currency which would allow limited fexibility for governments to create small amounts of currency in hard times. But to create substantial amounts ,governments would have to have the required gold to have at least a 20% fractional backing. Either way the world we are headed to is a world filled with austerity and hardship. Under these circumstances governments might elect to confiscate gold with unfair compensation for gold holders, ,that's why I hold very little gold and a lot of SILVER. I INVEST in many silver explorers and juniors. It would seem this is the way we are heading as many CENTRAL BANKS are hoarding gold and there is much talk of gold backing IMFs SDR with a basket of currencies. ALL PRECIOUS METALS SECTOR MINERS ARE BEING TRASHED ,in my opinion this is the very moment to load up with some good junior and midcap producers, many are offering upto 5% dividend and have P/ E ratios below 10. AS THEY SAY THE MARKET CAN STAY IRRATIONAL LONGER THAN WE CAN STAY LIQUID, THE TRICK IS TO BE IN THE MARKET WHEN IT TURNS RATIONAL. GLTA
NML Price at posting:
5.8¢ Sentiment: Buy Disclosure: Held
(20min delay)