Morning mgbutler,Found your post interesting.Whilst i agree that...

Morning mgbutler,

Found your post interesting.

Whilst i agree that Gold is going up, and will continue as this inflationary mess unravels.
However, unless you are into the physical Gold there could very well be a darkside to this whole catastrophe.

1) What do you think will happen if hyperinflation were to take place? From my understanding the Gold price would soar. Thats the good point that most people are watching and waiting. However, the downside could also attract massive costs to extract it out of the ground, plant costs and of course transporting. A near term producer or one just saying they have alot of Gold in the ground will not be enough. It would have to be companies that already have production in place and are growing their asset base and are not already hedged to the hilt. Even then costs will spiral in particular labour force.

2) The most disturbing part to my mind is from what i am seeing we are witnessing a slow market meltdown with the US printing alot more money at an alarming rate to make its people feel good without trying to fix up their finacial engineering that has filtered globally.

If, and i say if there was complete financial collapse of the fiat system, the US would have very little alternative but to declare its financial system bankrupt and seek to introduce the Bretton Woods system all over again.

Some will argue, it can't happen because the US won't let it happen. Well how may i ask are they going to stop it?

IMO its not about subprime meltdown. That was always going to be the tip of the iceberg. How far into this fiasco, i doubt many really know. However, the astute understand that this system is not sustainable.


US Debt $30,223 for every man woman and child.
Aus Debt $24,700 for every man woman and child.

One big difference. Our average rate to pay of a home is nearly 8 times that of our yearly income. Much much higher than the US. We pay higher taxes. We continue to pay higher interest rates.
Yet, the US continues cutting interest rates.

It is completely obsurd.

By all means i say make hay while the sun shines.
But be very careful in how you invest in Gold stocks if you are not investing in the physical.

Sure, there will be plenty that will say i don't know what i am talking about. I am a "Doomsayer" and all that.
More to the point, i think i am being a realist in this chaotic time in finacial history.

Thats my speil for the day.
Enjoy the good times while they last.

Cheers markco2