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SideShowMel0329 (96.51)

Is there anyone still long on gold? If so, you're more irrational than the bankers on wall street.

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September 02, 2009 – Comments (10) | RELATED TICKERS: ANV , NG , GOLD

And you're even more ridiculous if you are long on gold miners. Overpriced metal, especially gold, is the new trap of the decade. No longer are we looking at hollow tech companies soaring ahead with 1000% gains. Now, we're faced with a new breed of irrationality. Led by Peter Schiff, Jim whatever-his-last-name-is, and the rest of the looney crowd, these blind group of followers are so caught up in their Austrian (I hate using that term because it disgraces a decent country with an irrational economic ideal) economic theories that they believe they are the only humans on Earth who still hold an ounce of sanity.

The wake up call will come eventually. You may be loud, you may be annoying. You may scream and cry the sky is falling but it's all been done before.

Gold has gone to these highs before, and it will go back down to its lows again. Nothing is for sure in this market, but looking at historic price charts, they have never fared well immediately after recessions.

So if you're just now selling off your gold positions: Good for you, nice play, and well done.

If you're still buying? This is what I have for you:

 

http://img.photobucket.com/albums/v689/SideShowMel0329/34ss8ow.gif

10 Comments – Post Your Own

#1) On September 02, 2009 at 6:17 PM, SideShowMel0329 (96.51) wrote:

I wish I knew how to embed images...

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#2) On September 02, 2009 at 8:06 PM, whereaminow (94.19) wrote:

LMAO, what a well thought out post.  ROFL....

David the Crazy Austrian

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#3) On September 02, 2009 at 8:57 PM, ChrisGraley (99.67) wrote:

I'm certainly not buying, but I ain't selling either.

We've still got a long ride on this train.

Dust off the bell bottoms and embrace stagflation.

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#4) On September 02, 2009 at 9:03 PM, ClearEyez (95.29) wrote:

Your post was chalk full of so many thought provoking, indepth facts that i'm selling my gold right now!!! (sarcasm intended)

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#5) On September 02, 2009 at 9:13 PM, GeneralDemon (91.47) wrote:

whaaaat? Are the goldbugs raining on your parade?

I like the very good analogy you made linking a tech stock with no earnings to a miner sitting on proven reserves  HaHaHa.

The night is light and the day is dark. It's SpongeBob's opposite day.

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#6) On September 02, 2009 at 9:24 PM, danielthebear (97.32) wrote:

hey stupid look at the price adjusted for inflation. how can such a moron get a high CAPS rating?

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#7) On September 02, 2009 at 11:26 PM, goldminingXpert (99.97) wrote:

I don't think silver is going to $50/oz anytime soon as some of the more hardened metalheads here believe, but your post is WAY over the top in the other direction. Companies like JAG and NXG are still cloer to a buy than a sell at these levels, while companies like ANV and GG are clear obvious shorts. Like any industry, there are winners and losers.

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#8) On September 03, 2009 at 1:00 PM, SideShowMel0329 (96.51) wrote:

goldminingXpert

I agree with you here, all industries have winners and losers. But when you're investing in companies like gold miners, you're banking on the gold price (or if you're looking at other metal miners, the prices of other metals) will be at the same levels (or higher) some time in the future when the metal they're pulling out of the ground finally hits the market.

Now, if you're planning on investing in a company that is already selling gold, then you're probably fine in the short term (I'm not really sure at what state JAG and NXG reside), but if you're betting on a cheap company who is touting its future sales, you better hope gold stays where it is.

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#9) On September 03, 2009 at 1:02 PM, SideShowMel0329 (96.51) wrote:

To expand, I don't believe that most CAPs members realize that investing in a gold miner does not mean your returns will correlate with today's gold prices.

 

And I love how people are mocking my intelligence and my CAPs rating, especially the guy who is barely over 50, LOL!

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#10) On September 03, 2009 at 1:32 PM, goldminingXpert (99.97) wrote:

JAG and NXG are both profitable mid-tier multiple mine operations. I wouldn't by buying exploration companies here that's for sure. You buy those on dips, not rips.

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