"However you said that 'gold has never done that (bubbled)'.I would disagree with that. From my experiences gold bubbled in its last run."
Con I'm referring to the gold bull trend over the last decade. In 1980 gold was eventually way overbought for sure(bubble). Same thing will eventuate in this current trend. Nothing indicating that at the moment. The sell off from $1900+ to $1700 is a sentimental correction and not a fundamental one. Very healthy price action in a bull trend.
"This time around I've been surprised by the lack of movement in the sp of gold exploration companies."
The reason for that is because we are in a monetary crisis. Money is flowing into precious metals because the typical safe havens are not safe anymore. Precious metals are not moving up on a supply and demand basis, its a flight to safety. The investors in the gold mining sector are starting to wake up to the fact that the sick underlying fundamentals that is causing this hedge into precious metals isn't going to go away anytime soon, meaning safe to invest for the long term and this is not just a flash in the pan. In fact we haven't by far seen the worst of it. The next boom sector is precious metal companies. RMS IMO is a standout for a sound investment in a solid producing gold mining company.
"I put it down to a lack of confidence in the global markets and the gfc"
Its not a lack of confidence in the global markets and the GFC. Its the lack of confidence that it really is that bad. Like I said the precious metal equity market is starting to realize this. In fact the wider market is starting to wake up to this. Its mostly the contrarian and smart money that has got it to this stage. When gold hits $2000 then we will see people starting to really take notice.
"A sign of a gold bubble would be to see companies like these running on nothing more than a rumour."
Yes I agree. A few months ago when gold was heading up and markets heading down I noticed gold producers heading down as well. Its evident thats starting to change. There is no doubt now, that as gold climbs so will producing gold companies, question is will exploration ones with healthy reserves move as well. I wasn't so sure before but now I believe yes, question is at what stage of the gold bull run will money flow into speculative companies. IMO it will be way before this run ever heads into a bubble. When we see exploration companies with no reserves moving significantly on no more than a rumor, then it maybe a indication the gold price is starting to bubble.
Intersting times ahead thats for sure.
GOA Price at posting:
3.2¢ Sentiment: Hold Disclosure: Held
