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May 15, 2006


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hang on...


i am seriously considering buying 100 grams ;)


I wonder whether the demand for gold is effectively damped by the fact that so many stocks act as surrogates. I'm not talking about an ETF like GLD, which I assume actually buys gold and is simply allowing the commodity to be bought as a stock, but rather mining plays like NEM or DROOY, which allow a speculator to act on gold prices without actually buying the stuff. Granted these (or other analogous stocks) were around the last time gold spiked, but total market cap and liquidity for these stocks might be much higher than they were in 1980, allowing for more of the long gold speculative demand to be absorbed without actual gold changing hands (and increasing gold prices).
I'm long NEM w/ about 20% of my portfolio, myself.


Personally, I'm glad that gold has gone down even though I have some. I bought gold as an insurance policy against the apocalypse; since I would only sell it to save my hide in a serous crisis, I'm favorable to conditions that depress prices.


Hey ppl!! I am from India and penning down my comments first time here, I am a commodity dealer on Exchange and Spot market. The news from India (highest Consumer of Gold)is that there is no demand in the Indian markets, further I would like to make a statement here though it might sound little painful and is very difficult to mke people understand that Gold is not going through correction but it has just entered the bear phase. And i believe it is here to stay for some time.



Seems possible. I dumped my NEM holdings about two hours after Bernanke's inflation comments and managed to come out a hair above even. Feel even better about it with today's meltdown, but could't resist buying a little bit of EZM at these prices... so now I'm effectively long copper.

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About Big Mike

  • Big Mike has a BS in Economics from the Wharton School of the University of Pennsylvania, an MBA and JD from Arizona State University. He once worked as a stockbroker for six weeks.

    His politics blog is Half Sigma.

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