Probably quite right if you take into account the 1980/1 equiv price of US$2400 per ounce I’d say.
I’m already invested in Xstrata so that ticks the boxes for a multi-producer with diverse product types however I’m now moving into rare earth stocks – the usual Ozzie contenders such as LYC (already in) and Arafura (not in – and probably won’t jump in thanks to the inimitable Julia on the HC boards lol!)
Investing in gold producers at current mkt levels (price of gold, not just the stocks themselves) since they’re also riding the crest of this peaking demand for the yellow shiny stuff too isn’t cheap – it’s totally speculative – in other words, for me, they’re too expensive right now & I don’t want to get into pure exploration plays either regardless of how close they are rumoured to be hitting their targets. Let’s face it – if gold is the safe haven it’s perceived to be – and China calls-in its T-Bills sometime soon… can you honestly see us all carrying gold coins around with us, or leaving ’em (god forbid!) in a bank’s vault for safekeeping? No, neither can I… That’s why I try to concentrate on companies with great management, great & growing sales, relatively low p/e’s and with saleable assets in the ground… the latest of which I’m into is MLM btw – because of all of the above… (and it’s a great & cheap backdoor into MTE too!). I hope all this isn’t o/t too much Cheers, VRS
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