gold shares investing ..., page-9

I think we are all being sucked in by what the media report on the gold rise and fall and what the cause happens to be on the day.

Gold up - due oil rise

Gold up - due dollar slump

Gold down - due oil fall etc etc etc ad nauseum

Gold is the traditional store of wealth

Gold is the traditional hedge against inflation blah blah blah

I don't think anyone really knows what is driving Gold on a day to day basis but there has to be a central issue/theme and sentiment that does not fluctuate that is to say it is something more innate. I believe that apart from the sentiment eg fear of not owning gold, there are structural issues eg M3 money supply, in the US that will see Gold continue its upward trend.

Today oil is well above $116 but down off its highs the dollar slightly off its lows yet gold is rising today. I wonder how they will explain that one.

As far as the juniors go like any startup business or project about 70% will go bust and a further xx% will go bust after they start operation or announce results. The trick will be is to find those companies that have cash and are either in production or have announced good results and are cashed up. Obviously management talent plays a huge part in the success. Eventually we will see a sorting of the chaff from the wheat and those gold juniors that fit the bill will do well. I know this is easier said than done so obviously it's important to do thorough in depth research.

Anyhow stick to what you believe and ingnore the noise of the media.

Cheers
BW

How to play the flute

Well you blow in one end and move yor fingers up and down the outside.

Thanks Allan that was great.