thomast2

Platinum is on Fire, Will Gold Be Hot?

Thanks for your comment. Yes, it is possible. As you said it well, it is a supply issue. But it is also possible that demand for jewelry will decrease and substition from palladium will dampen the price increase. I am more looking at platinum as a leading indicator to gold which also has a monetary function for central banks. They probably won't sell those gold in their vaults.

Anybody Seen Our Gold?

Thank you all for your comments.

Pseydocyst, GATA mission is very different than us gold investors. They are not in for money, but to discover and reveal the truth and increase public awareness.

JT, your points are very thoughtful and I agree it is a big deal. But at the same time, with gold in bull market for 8 years, I see gold cartel's power deteriating, unlike in the 1990s when they could do whatever they want to do. Also European CBs have made no secret about selling gold, and it is public that CBs don't like gold and selling gold in the market to depress gold price. So it is not a totally conspiracy no one knows. What GATA is doing is to try to discover whether investment banks at Wall St are used by US Fed and other CBs to manipulate gold market at daily basis. This is a different matter. Unfortunately so far there is not much strong evidence on this matter since no one is talking. All we see are some strange price movement as you pointed out.

Another thing is to make Fed transparent on our gold postions, their gold cross trades and reserves, which could be the single most important thing for the future monetary strength of this country. This is why I said the existence of GATA is very healthy and timely and hopefully they can promote public awareness so power will return to the people, not the few elites behind the scene for too long.

Gold Will Hit $1000 in 2008

Thank you very much for your comment. Really appreciate it.

Gold Has More To Run, Whatever The Benchmark

Thanks for your comment. I will actually discuss more on this in the future but since you mentioned it, I will give a quick note here. DJIA represents paper asset, gold is the king of all commodities and represents the hard asset. They are both assets but people have changed their preference from time to time and from one to another. For example, in 1970s, no one cared about stocks, or so-called nifty fifties were all down 50-90% from the peak, while people were buying into gold as inflation and asset protection vehicle. Gold was out of favor between 1980-2000 and I am arguing that we are seeing a financial asset rotation back to gold. Thanks again.

Gold Has More To Run, Whatever The Benchmark

David, I actually read that article. Maybe it is true that M3 is not a good figure to look at, but too many other factors argue for gold's rise. I actually think it might be stagflation, or recession plus inflation, as Jim Sinclair always indicates and what actually happened in 1970s. There are many more reasons for gold's rise which I will discuss in the future.

Bill, I appreciate you share your thoughts on the strategy and your other comment at my earlier blog.

Setting A Minimum Gold Price Target

Thanks for your comments. By hyperinflation, I meant out-of-control price inflation like in the 1970s, which I do see a repeat in the near future. But now if I rewrite this I will use a better word, stagflation. It is hyperinflation combined with slow-to-no output growth, rising unemployment, and recession. Thanks again.

Remaining A True Believer in Gold and Precious Metals Stocks

I agree and thanks for your great insights and comments. Last 4 years, every major ups & downs I did trim back and buy back however, not enough. I developed a simple HUI and gold indicator, but only trim back 1/4-1/3, not the majority of my positions as you suggest (however not too sure about your target of 30%). Part of that is more psychology than anything else, I am concerned I am not fully invested for this major long term gold market, so I tend to trim less than I should and buy back too early. I will do some backtesting on your strategy and probably make some minor change to my strategy by incorporating yours. Thanks again. Thomas

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

Personally it is not my style to chase a stock after several days' good run like this. If you want to buy, I hope you can buy it at retreatment aroun $13, which of course might not happen. And I am still holding on my shares. IMHO, I feel the $25 target by Raymond James is pretty good, and probably conservative if there is a acquisition happening.