[turtle777]

I'm long Gold. Physical, ETFs and mining stocks.



http://www.thelongwaveanalyst.ca/DowGold/DowGold.htm

The current administration's policies can only lead to inflation. Moreover, after this huge run-up (bubble) of the Dow Jones compared to Gold over the last 20 years, there will be a steep decline. Just look at the steep declines after the last two DJ heights. Add in the Fed printing money like crazy, the coming decline will be very similar.

So, what does that mean ?
Even if the Dow Jones doesn't decline much or even go back up to maybe 10,000, the price of Gold will explode. If you invest in stock, your investment will way underperform the growth of Gold.

There is no reason why the DJ / Gold ratio should go up in favor of the DJ over the next years.

-t

[turtle777]

One more nice chart. WTF ?
How can we think that we can spend ourselves out of the problems, like Obama tries with the Failulus.



-t

[Big Mac]

You're totally right. Long term gold is a very safe bet for heavy appreciation. How are you long gold? Do you use an ETF or are you buying gold directly?

[turtle777]

Originally Posted by Big Mac 

You're totally right. Long term gold is a very safe bet for heavy appreciation. How are you long gold? Do you use an ETF or are you buying gold directly?

Right now, I have positions in GLD (US Gold ETF) and ZGLD (Swiss equivalent Gold ETF in my Swiss bank account).

I also started buying physical junk silver coins (US silver coins minted before 1964), which contain 90% silver. See here.

I'm also considering the Perth Mint Certificate Program, but it only makes sense if you want to invest more than 10,000 $.

-t