The gold company index (XGD) is free-falling. If the Bernank gives some more QE hopium this week, the sector might find some support. But then not necessarily: even with all the QE out of the US and LTRO out of the ECB the past 3 years, the gold company index is today back where it was in April 2009.
Source: Cory Venable, CMT, Venable Park Investment Counsel Inc.
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Bullion, not stocks. Insurance, not investment. Hyperinflation hedge, not inflation hedge. (Note: hyperinflation is NOT high inflation). Small portion of net worth, not whole hog.
No matter what happens to the units we call dollars, yen, yuan, shekels, or francs, gold will remain. Just ask the central banks.
No, you can’t lug around bags of gold, but a monetary system collapse is not the same as a collapse of civilization. When Weimar went hyper in ’24, Germany did not collapse into a savage hun state. They simply replaced the currency. Ten years later they were the most powerful country in Europe, and giving the US real competition for control of Europe (which is why the US took them out in WW2, but that’s another matter).
Yes I see. Mmmm….my taste buds are saying ‘yummy meal coming my way’ but I am going to having to wait longer for my feast.
And so I wait, patiently. And watch the charts. No sense in buying other investors troubles and woes. Let them throw the bullion right into my waiting hands. There just isn’t enough fear out there yet.