how low can gold stocks go in gfc2?, page-16

i like your thinking Sandstone...

I reckon there's a big chance we will see a GFC#2, led by a currency crisis in the USA

but this time it will be different, as all recessions are, im positioning my investments with the expectations of a POG above 2,000/oz....well above that figure

If the world loses faith in the USD then all things priced in that ccy will rise, and these days, just about everything is priced in USD

If you do some research you can already see the world moving away from USD, not closer....the Fed buys the majority of the bonds issued, which continues to finance their massive spending binge

Germany has recently actioned their call option on the gold they have stored at the fed....they want it in their own vaults where nothing can go missing...China has also completed a record month(dec 12) of gold bullion buying after a record year (2012)

gold is the worlds hedge against the USD which is becoming sicker and sicker each day and if a GFC2 hits, then it will be chaos, gold could go to anything

with 16 trillion in debt, and QE at full speed, they cant afford ANYTHING to go wrong, and this is where Gold will be the best place to be

the one big concern of course is if it hits before a mine is built at Mt Kare, then obv that makes things a little worrisome, however with gold at record highs, im sure those that do have money would be keen to lend to a gold miner and with Barrick up the road, thats where the proximity premium comes into it

in spite of that, IDC should only be a part and not a whole of your portfolio and even a part of your gold stocks and not the only one you hold

from a personal pov....25% of my portfolio is gold and 10% is in IDC, so although I think it has enormous potential, it still pays to diversify