Friday, August 12, 2011

it still hasn't sunk in yet

I'm watching the market intraday and getting longer-term thoughts from it, which is always a little dangerous but all the same today it's worth a comment. It just seems to me that the general and broader market still hasn't come to terms with the fact that gold the metal isn't about to drop through multiple layers of support and back to where orthodox economists (the dumbasses in suits that got us into the mess we're in now) think it should be.

I see profitable producers of gold selling at 6X earnings, the type of price base metals producers go for when zinc is at $1.30/lb and giving them 80% margins. On one level it's a bit crazy, but on another I hope that the crraziness continues for a while longer because it just gives more time for those who have got it to add to positions.

Gold is above U$1700/oz today. You seriously think it's going under U$1500/oz, dumbasses in suits, while you idiots who have been 100% wrong for at least a decade are in charge? While world CenBanks are adding to their holdings? While the world's reserve currency is being deliberately devalued by people that see no other option to get out of their debt-laden snafu? Well fine, think what you want.

I'm long gold, how 'bout you?