Robert Nabloid

Will We See a Big Upward Move in Gold?

I take a longer term view and prefer not to use leverage (though I have done so a few times).

Please look back in history and show me a good fiat currency. Why was gold at one time $42?

I don't consider gold an investment, but a store of wealth. Is it the best store of wealth? I don't know, but it works a lot better than stuffing fiat dollars under the mattress or in a bank account.

"I firmly believe that there will be a trading range for all the better commodity stocks and ETFs that will give us several chances to buy low and sell high over the months directly ahead. Your comments on that will be appreciated. Happy holidays to you all."

I don't see the price of gold crashing anytime soon if that's what your asking, so if you are a trader looking to get in and out, perhaps after December 31 I would expect the dollar to get weaker. I'm not 100% sure but I was under the impression that many companies that are based in the US but have international operations like to repatriate some of their foreign dollars into USD's for end of year accounting purposes? I could be way off and maybe they just use the exchange rate on last day of their corporate year end. Either way, I'm expecting some bad layoffs in January with most of that data about January to be coming out sometime in February. So Between Jan 1 and March 1, I think gold should get stronger? I'm only guessing and I'm not good at such short time frames. That's why I don't do short-term trading.

Big Mining Is in Big Trouble

"Teck had the misfortune to acquire The Fording Canadian Coal Trust this year when commodity prices for coal and its other primary product, zinc, plummeted"

My grandma had the misfortune of owning some of those Fording Canada Coal Trust shares - They were paying outstanding dividend yields (I can't remember if it was 15% ish or 30% ish, but it was very high!) - but Teck stole it from us! At least they paid well... LOL. I was surprised it still went through! I wouldn't have minded her still owning the shares instead. They gave her some Teck shares and some cash if I remember correctly...

"Bear in mind also, that as long as the inclination of fiscal government is to boost economic growth by Keynesian capital over-saturation and its attendant low interest rates and loose terms, the peaks and troughs of these cycles will continue to amplify as the global economy continues to merge and grow."

I agree fully. Keynes died. For some reason they're trying to revive him and put him on steroids as it he won't just keel over again after making the mess bigger. Oh well, I guess if you invest in the right areas we can take advantage of the foolish system. Still sad that they can't comprehend such basic economic ideas like "live within your means".