Comments on: Chuck on Gold Stocks: Don’t Procrastinate!

By: FranSix

FranSix — Thu, 22 Oct 2009 00:16:35 +0000

Thanks for expressing the essential on gold stocks, that in order to benefit, you must accept a certain amount of downside risk. There have been very few selling opportunities in the junior golds since the last two years, so a lot of downside risk.

But if I may add, that geology is a factor that cannot be ignored.

Aside from all these considerations, one article that raised my eyebrows this last week was the fact that MacQuarie is making a bid for Blackmont. If anything can move the junior gold mining sector, its an appreciating gold price and a collapse of the cartel bear. Consider if you will that a real struggle between bulls and bears is about to ensue; I believe this is reflected in the commercial banking sector move here in Canada:

http://www.financialpost.com/news-sectors/story.html?id=2111696

By: cameroni

cameroni — Wed, 21 Oct 2009 21:17:51 +0000

I have to agree with Gary Liebowitz on this issue. A lot of us are anticipating a market correction and it seems clear that gold and gold stock will be just as bad a place to be stuck if it happens. God help anyone holding juniors if there is a sudden drop. If there is a large correction though, a further slowdown in the economy and plenty of new stimulus to counter the ill effects then Gold should resume it’s course on the parabola again. That’s when I will make more long term bets. Not now.

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I agree with both of you up to a point. But suppose the bear rally were to take the Dow all the way back up to, oh, 12000? Where would gold and mining shares be trading then? RA

By: gary leibowitz

gary leibowitz — Wed, 21 Oct 2009 17:18:59 +0000

Gold going up with ALL commodities? Is it a safety issue? A falling dollar issue? An inflation issue?

None of the above. Follow history and you will jnotice just how bad Gold is for the long haul.

If GOLD falls again during the next round of steep equities slide then you have your answer. So far everytime equites fell so did gold. As the dollar gets trashed all commodities rise to the occasion. I see nothing different between this commodity and others. I don’t see the dollar falling relative to other currencies when we have our world depression.

I am still sticking with my 5 month old proposition that we are repeating on a grander scale the 1930 run-up before the real crash.

By: mark

mark — Wed, 21 Oct 2009 13:08:51 +0000

i own many juniors,but my biggest position by far is SFEG.OB,i urge you folks to check it out. their biggest problem, IMO, is that very folks know about them