Many, including Mangan, are betting on a gold bubble. The last one is Georg Soros who bought 60 million dollars worth of iShares Gold Trust. The Trust holds metallic gold in vaults and tries to reflect the price of gold owned by the Trust at that time, less the expenses and liabilities of the Trust.Gold bubble is a high probability event, because the euro and the dollar are weak. Gold seems a fair investment, but quoting Wile E. Coyote, "Foolproof plans are for geniuses".
10 comments:
Some think it will again be formally embraced ass the ultimate reserve currency, and which will "guarantee" a value of $50 000 per oz. I think this is possible but unlikely to happen in such a way that allows speculators to profit so easily.
I am buying mining shares since I want exposure to gold but also other commodity metals that people (especially the Chinese) actually need, use, and don't merely want.
Anon.
It would be interesting to learn more about old Rhodesian mines. The current baboon will soon kick the bucket and new investment will flow into the country.
My son is pushing silver, based on a few things - first that silver is currently underpriced in terms of gold based on the historic 15/1 ratio which was in effect since Roman times. Second that the Chinese are interested in holding physical silver - both individuals as a form of savings ( the classic Chinese form of wealth) and as a way of liquidating their dollar holdings by slowly converting them to silver. There is also an enormous short position in silver outstanding (it's not clear by who) which will have to be covered at some point. I don't profess to follow (let alone agree with) all his rantings but even a stopped clock is right twice a day.
K
And Rhodesia, by the way is rich as Croesus when it comes to mineral deposits.
Anon.
Rhodes was a miner. May be there is a window of opportunity coming to heal that country.
Generally speaking in these dysfunctional societies, the mineral wealth increases the well-being of the general population only very slightly and indirectly. Most of the money ends up in the Swiss bank account of the dictator. I'm not optimistic about healing. These people inhabit a world that is incompressible to us, where albinos are killed in order to own their magic, AIDS is not caused by a virus, etc. The white man's notion of "progress" does not apply.
K
Once Rhodesia was a rich agricultural, mining, industrial country. Very livable. Now it is sick but can be cured.
They would have to allow the white people or some other intelligent race to run things again. Not likely that would happen - it would be an admission that ending colonialism was all a mistake (which it was in the case of Africa) and that blacks are incapable of self-governance. How likely is is that Israel would ask the British to come back to run the Mandate?
K
A new kind of colonialism will evolve in Africa, based on corporate economic advantage only, and not on commitment to the country as was the old model I lived in, years ago in Central Africa. We civilized these places, brought schools, hospitals, roads, all sorts of infrastructure to say nothing of peace and justice.
AS a reward, we got labelled as Nazis by the "International Community", were forced out and our assets appropriated.
No good deed shall go unpunished.
Anon.
Decolonization was just one more Soviet strategy for fighting the Cold War. The mess that Africa is in is just more collateral damage from that war (Afghanistan being another place still feeling the aftereffects). The damage that the Soviets did in the 20th century is incalculable and continues to this day - its shockwaves will ripple for centuries.
K
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