Not a case of me getting bearish or weak on gold. ( Although I note a suggestion on this forum that my original post on this thread may mark the bottom. I hope it's right. LOL)
What I was trying to point out is that the self proclaimed "experts" who write "authorative" articles that goldbugs like to read & quote, have for quite some time been wrong. For years, some have been predicting gold at multiples of its present price. In reality they just don't know. The proof of this is the fact that their predictions simply have not come to fruition.
Not saying they won't one day be right but their "reliability" so far is not something one can bank on or make sound investment decisions on.
So why do some investors place such faith in these people.....It is illogical
Right now, the USA appears to be going pretty well, with all the economic indicators pointing towards a strengthening economy. Therefore not too far away,... rising interest rates & a more attractive US dollar = a stronger US dollar.
( Must admit, I havn't checked this with Warren! LOL )
A stronger US dollar is better for all local miners, including gold miners. What is illogical is that generally, local gold miners have recently fallen in price as the US gold price has dropped, but after allowing for the rising US dollar, the price of gold in Australian dollars hasn't changed too much at all.
Bruce you have me pegged wrong as a "goldbug" I am neither bear nor bug. I am neutral. Ive been around too long to get mesmerised by arguements on either side !
Gold will fluctuate Low prices = mine closures, less production, less selling by central banks, more demand, etc etc= rising prices.
High prices = more production from marginal deposits, bank selling, less demand, etc = falling prices.
Stating the bleeding obvious..
Maybe I'm a Guru !
Not really
What I am, is an enthusiastic supporter of BDG, because I believe they have a world class deposit & will be a long life, low cost producer in the years to come. (Enough ramping !!!!!!!!!!!!!! LOL )
