Forum Archive Index - March 2004

["Baa Baa" <baa_baa@hotmail.com>]

Allan,

Participating in the AU/AG mining shares is OK imo, as a short term play for 
profits in whatever fiat currency one can garner gains (in fact some larger 
AG/AU miners are optioned for a higher leverage fiat play), however, as you 
point out, "Gold" is going up. So is AG, even more spectacularly. Watch 
particularly the Gold:Silver ratio (currently 55) as it returns to full 
monetisation, historicall fixed at 15.

AU is a metal which is transitioning from pure commodity after decades of 
suppressive influences, (back) into monetary significance, as is AG. This is 
not isolationist, nor in-consequential. It is the indicator, the canary of 
global economic concern. One could suggest acquiring a position in the 
physical as a pure hedge against the [inevitable] circumstance which these 
AU/AG stocks provide an indicator of.

Buy some physical with your profits from the miners. Aim for 5-10% minmum, 
or upto 40%+ if you 'believe' the blessed fiat experiments of the present 
day are just that ... experiments, designed to favour the already obscenely 
wealthly, at the expense of the layman - the ignorant, the debt burdened, 
the financial minion.

I recommend "Gold Wars", by Ferdinand Lips (Swiss Banker), for a wholesome 
insight into the vagaries of the past two generations (and previous, but 
especially the past two), and their malaise, consequentially arising from 
perpetrated disdain for 'sound money' underpinning (in [successful] pursuit 
of obscene profits) .

In summary, when the shtf, one might be well advised to be holding precious 
metals too. Use the derivatives [stocks / options] to generate the capital 
to do so.

Best to you,
BAA




>From: "Allan Julian" <ajulian@xtra.co.nz>
>Reply-To: sharechat@sharechat.co.nz
>To: <sharechat@sharechat.co.nz>
>Subject: [sharechat] price of gold.
>Date: Tue, 23 Mar 2004 17:52:21 +1200
>
>Its on its way up.
>I am buying gold mining shares as a way of protecting myself.
>Have made money on LHG although that went on the stop loss, and KCN is
>moving up AGG have not moved. I have just on spec picked up some OXR, 
>should
>have done it a while ago.
>I trade on the NZX and AUX only and don't buy options, or futures, because 
>I
>have not got the experience.
>The question is, what could I be doing better? and is AGG doing a fizz
>because of the proposed new south African law requiring a percentage of
>ownership based on skin colour? or some other reason?
>Thanks for considering this,
>Allan.
>
>
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