FallguyIn your first reply you said:“Gee! That makes sense....

Fallguy

In your first reply you said:

“Gee! That makes sense. Let's all buy gold shares and never sell them even if they fall so nickoo and Richard Russell can make a motza out of their initial position taken up months ago.”


Who said to never ever sell them? Re-read my and RR’s comments. What RR has said is NOT to SELL whilst gold remains in a primary bull market. The time to sell is when the bull market reaches level 3 – i.e. the speculative phase signaling a top. IMHO, we’re still at stage 1 ie. accumulation. Why do I say this? Look at the Fin review – they’re still negative – they knock gold in 80% of their articles (ie when they mention it- which is very seldom). Look at the broker consensus – negative. Look at the level of public knowledge and participation in the gold bull market – it’s very small. Most people still view gold as a barbaric relic.


In your second reply you said:

“Buy and sell by all means whiteyg but don't get caught holding and waiting for the big bull if pog starts to fall. $1200 an ounce? Only if the US$ falls to a dime.

When I see a recommendation to buy and hold hold hold I see criminal intent.”


I view your comments here with humour. I bet you were saying the same thing to those espousing a buy and hold strategy with equities at the beginning of their bull run in the 1980s.

In hindsight who had the criminal intent in that case? You, or those that recommended stock back then to their now wealthy clients? (BTW, very few were positive on equities back then- that’s what happens when a new secular trend develops – the majority treat it with skepticism.)

Equities were ludicrously cheap back in the very early 80s, with PE in the single digits – much like many gold stocks today. Equities had also had a very negative run in the previous decade (much like gold today) which led to the majority treating them with disdain. The fundamentals in terms of earnings growth were also very positive for equities ie. A strengthening economy and dollar. Gold is in a similar position today, with the rising gold price supported by shrinking mine supply and increasing demand…which is on top of the existing 1,500 tonne supply deficit.