to buy or not to buy, page-17

Thommo25, I do it 2 ways, for a really long position I am buying actual bullion from dealers in the city, but that doesn't let me get in and out of the market quick enough to trade it. For relatively shorter longs I trade the GOLD sec on the ASX, I find its highly liquid and tracks the kitco charts for Au in AUD precisly, so it gives me confidence.

These a seriously wild times, I dont think any of us have seen markets like this ever, in many ways it seems worse than 1987, and at that time I was in school and oblivious to the notion of markets anyway. We have had a long protracted bull market, maybe a proper bear market is new to most people? Even in half a day of trading the ASX moved $13.6 billion of value, $5.7 billion in the first 18mins! WOW! An average day is $6.7 billion. I know the volume was also due to the SPI expiry, but still what an insane day!

So what makes me bullish on gold is many things, but the single most scary thing is inflation and the rampant debasement of all our currencies by the central banks. In the US the money supply is being increased by 16% yoy, here its being pumped at a rate of 23% yoy, earlier today I read
http://business.smh.com.au/reserve-bank-adds-liquidity/20080320-20n0.html
which means one thing to me, more money chasing down the same amount of goods/commodities/real estate. I like most people don't like the prospect of losing buying power with my hard earnt cash, take a look at http://www.rbz.co.zw/ for an example of the worst case scenario, seems that Japan is not much better with effectivily free money from the CB, but still they cant produce their way out of their decade long rut.