Bullish on gold?
Then what to buy - gold or the gold stocks?
Last week an "expert" on BNN advised the viewers to only buy physical gold and to take delivery - because you can't trust any form of paper in this crazy world
That had to be the most lunatic fringe advice ever tabled on national television
Here is the scenario if things get so bad any form of paper currency - to include gold stocks, and gold trusts - become worthless.
Your family is the only one in town with gold bullion stashed in the fruit cellar.
You venture out to trade some gold for food and other essentials for living.
An angry mob will ambush you - steal your gold and loot your home for the rest.
Relax - have a beer - the gold stocks are fine
Will that be bullion or paper?
Then what to buy - gold or the gold stocks?
Last week an "expert" on BNN advised the viewers to only buy physical gold and to take delivery - because you can't trust any form of paper in this crazy world
That had to be the most lunatic fringe advice ever tabled on national television
Here is the scenario if things get so bad any form of paper currency - to include gold stocks, and gold trusts - become worthless.
Your family is the only one in town with gold bullion stashed in the fruit cellar.
You venture out to trade some gold for food and other essentials for living.
An angry mob will ambush you - steal your gold and loot your home for the rest.
Relax - have a beer - the gold stocks are fine
Will that be bullion or paper?
Posts
2 comments:
The question of paper or bullion is an important one. The Barrick/Comex gold bullion spread chart shows a declining line. The chart title left me without a firm understanding of what the chart is telling the viewer. Am I correct that the preferred holding was stocks and now it is a case of holding either? Thanks, Neil
Good observation, the declining spread through mid October tells us bullion is out performing the stock
From mid October on the stock is out performing the bullion
BC
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