KBowen7736

Gold Bugs Beware

"The reflationary trade will likely result in gold prices moving up at some point in the future, but outperforming equities? I don't think so"

Equities, after adjusting for real inflation and not the governments BS, are way behind gold. Even at this point with massive forced selling in precious metals anything, the price still remains above the buy and hold level for the DOW if pick a point some 10-15 years ago.

The principle fallacy in your argument is that you treat gold as a commodity not unlike corn or hog bellies. You have heard it before, gold has always held a monetary function in the world's economic system and will continue to do so when the fiat currencies fall apart.

You also rest your arguments on the current price of treasuries. The repatriation of dollars and panic buying of treasuries from foreigners will come to an end when they realize that a US debt default is a real possibility. The fate of the US as a soveriegn nation rests in the hands of the Chinese at this very moment. If you don't think this is so then you are truely nieve in calculating the largess of the US dollar. It has fallen apart and once the rest of the world decides on a plan to move away from a dollar based reserve system then all your chicks will come home to roost, as the Rev Wright would say!

HUI and Gold Price: Best Future Return Likely In Junior Miners

Well thought out Mr. Tan! I agree completely with your take on the benefits of owning large cap miners. That view is reinforced every time a large miner pays a premium during takeovers of a junior.