Rowingboat I keep topping up in TRY. Troy has top Management and is a dividend paying gold company that has consistently operated within its means and now looks set for an exciting growth phase yet remains absurdly priced on the lowside imo.
I bought some more TRY today. I had to of course overcome the "wall of worry" prevalent in "Gold" threads that gold might get smashed tonight and also in the following days.
This takes me right back to when I was a youngster and the October 1987 Stock Market crash. Everyone was worried about another crash in October 1988, October 1989 and for years people were fearful and predicting another 1987 style crash.
Well, they had to wait 21 years!!!
Similarly because gold and gold shares got hit very badly, gold equities in particular, in the 2008 Great Financial Crash, many gold investors are nervously expecting a repeat.
In addition, because gold has tried and failed to hold US$1000 several times there is this fear, or is it acceptance of, "Here we go again." That IF gold gets to US$1000 it will be promptly smashed down again.
However what I have noticed is that while our leaders NCM and LGL are not exactly setting the gold sector alight with gold currently trading around US$945, the better quality juniors, after an initial relief spurt following the 2008 GFC, continue to consolidate and/or gradually increase in price.
The simple fact is they were so battered in the 2008 GFC that many ended up like TRY being valued below their cash on hand while valuing everything else they had as being worthless on the basis of:
1. Gold will continue to collapse in price as part of a world wide deflation.
2. It's the end of the world as we know it.
3. Any gold in the ground these juniors have is worth nothing because it costs money to bring into production.
4. There's no point being a gold producer because you'll lose mony.
5. Any cash these juniors have is worth considerably less than its face value because it will be squandered away or lost in a bank crash!
As I indicated earlier, there is clearly a massive "wall of worry" about gold and gold equities right now. Just look at the posts on Hot Copper in "Gold" as an indicator -there are so many warning us of serious corrections to the gold price.
There's also a belief by posters that the commercial traders - COT - must win every time. That every time they go heavily short on Comex they will clean up big time as the gold price crashes allowing them to cover those shorts at much lower prices.
Well, what I have found interesting is like last night when there was clearly an attempt made to kill the gold price by the heavily short COT. Gold fell from the low $950s to $942 in a matter of seconds. But instead of collapsing with numerous follow through panic sales big buyers appeared and gold still finished in the mid $940s.
Could it even be that the rules of the game are starting to change on Comex? That when COT screams, "Collapse!" the gold price doesn't automatically collapse on cue like in the past?
Let's face it, the deflation story is no longer being bandied around as the norm - how can it be when those nasty "speculators" have forced the price of oil and all other commodities sharply higher?
But of course this is a consequence of virtually unlimited amounts of US dollars being printed out of thin air and backed by nothing, and quantitative easing elsewhere like in England.
