Dave G

Is This the Death of Gold & Silver Stocks?

Good call on ABX. Who else has 176 mm oz in the gound? This stock is cheap now. It's insurance against big inflation or US nationalization of banks. Don't think it could happen? About one third of deposits are not FDIC insured. That's in excess of $2 trillion.

Barrick Gold: Higher Cash Costs Weaken Upside

While $40/oz is a higher cost, how significant is that in a market that moved up $20 in three hours - as it just has today. Predicting the price is all but impossible, as anyone following the experts recently has found out . The price of ABX is cheap as insurance against a systemic financial collapse.

Once again, the experts one year ago scoffed at this outcome- and now after one $trillion in interventions, there is no evidence that the over-leveraged banking/ government funding system can survive in its present form.

This stock - and the other high quality gold miners - should be trading at a premium, rather than a discount, to reflect the uncertainty of financial conditions around the world. My opinion is that investors are more a victim of de-leveraging across the board and official attempts that so far have been successful at suppressing the price of gold.

ABX remains the cheapest of all insurance policies against a collapsing $US dollar.