Seems like gld price not hitting $1300 tonight.Hmmm, page-34

1. Gold = money especially in war torn countries as refugee exchange services with gold. Happened in Vietnam, Cambodia and before that China during the war years. Gold is not money in Western developed nations. There isn't a yield to hold them unless you equate yield=insurance feature of gold. Equally convincing argument currently is that bond yields from Japan and Germany especially being either Zero to negative are good reasons to be hedging the fear of a market collapse with gold. I don't doubt that theory or strategy but all in to any sector is suicidal.

2. Agree late 2014 was a good time to be getting into selected gold stocks as I have done whether accidental or not . I went in with a total different mind set to gold bugs! It wasn't to protect and prep myself for the upcoming market crash Armageddon. Far from it. It was to diversify. I mentally distance my thinking of gold as money to a commodity. I call it a fear commodity. Gold is basically useless as a major industrial usage unlike Silver. I won't start a debate on this statement. It's use is fear hedging because every generation will point to the previous as the use of gold.

3. US and USD is probably as doomed as Japan and Yen? If so Japan has been surviving on handout for 20 years? Handout from private funds financing Govt expenditure though sovereign bond purchases? It does not matter where the govt source funding capital from, debt is debt. Do you think Oz state of sovereign debt is safe? 20% of debt to gdp or somewhere in that ball park figure and with one of the lowest ratio in the developed world right? What about that 1Tiliion private sector debt? Some suggest the bulk are backed by properties. I wouldn't bet against The Feds when it comes to USD$. They are the market and they will push it in the direction they desire to fulfill specific agenda. Not even Soros having famously almost broke BOE can out d this gorilla. He is one person with 40Billion $?

According to gold bugs and Schiff, USA economy should have collapsed in a pile of dung a long time ago. Qe1,2 & 3, and the DOW/SP500 is on a bull run. This isn't some kind of manipulated buying although some sector of the non conventional thinking had the Feds buying up half the DOW. Why not Feds buying up 90%?

And lastly, when in 2011 I was looking at the Angels, SLR MML TRY RRL NCM Ozcentric producers excluding USD earning ones in Africa, I was in the most envious position having missed that massive bull run. Little did I know that you could have got them with 90-95% discounts if you had the timing correct, don't practise bottom picking and just waited until it became almost a forced buying based on valuation. Well I didn't subscribed to that philosophy although my second little exposure is in MML way back in 2011 if I recalled. Thank god I did not average down as it was customary to do so if I were reading HC advice. Currently none of these fallen angels has even made a lot of the late bulls their capital back yet. Not sure if it will but one can only remain hopeful.

Instead I see a lot of new bulls professing their market skills bottom picking or shorting the US markets. There is nothing wrong with counter trend plays except to be aware that it is difficult to get consistency.

I go into gold with an open mind and don't believe in conspiracies although I almost got sucked into this mindset initially. I favor having Skol with his contrarian opinions and those who cannot take his opinion are usually those who are just dogmatic in their thinking. Your folks will make very good LONG TERM investors in gold, rain, hail or shine.