The Really Useful Gold Thread

I am starting to feel very bullish and I can see the first six months of 2007 being much like 2006. There are many parallels between then and now - rises in October and November, with a correction in December, before a nice move up over the Xmas period.





Many of the junior miners are now at or beyond their May 2006 highs, while gold is off $100 and silver $2. It was as though in 2006 they didn't believe the prices. Now they are confirming those price are possible, even leading them.

My view is that the smartest money is in the juniors (and some of the dumbest). This is the money that understands the global situation, wants exposure to it in a leveraged but less manaical way than through spreadbetting and is, in most cases, prepared to go out and do its research.

Companies like First Majestic, Sabina, Mawson maybe old hat to this thread, but I have many friends who work in the stock market whose knowledge of the sector barely extends to Barrick - in fact I'm usually impressed if someone even knows them.

If you talk about inflation, governments increasing the money supply, gold as a form of currency you get blank looks.

If at the average Minesite forum there are 100 investors or at The Silver Summit not many more than that in a country of 60 million, many of whom consciously or unconsciosly own stocks or are exposed to the stock market, yet the commodity in question - gold - is arguably the most important in the history of man and might again prove a serious form of money in the years to come, you have a perspective on where we are.

What would you rather own gold sovereigns and junior miners or buy-to-lets in Liverpool?

I reckon we are at then beginning of stage two. We have had stage one, we have had a maniacal phase at the end of stage 1, we have had the correction; we have had the bounce of the 55 week MA. We are in the early part of stage two. Hang on to your positions.

Energyi, how about a RUG Stock Picks for 2007 thread?